Liotech Industries Limited

Industrials — Building Products & Equipment · BSE

₹92.40+₹4.40 (+5.00%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Liotech Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Liotech Industries Limited manufactures and trades in architectural hardware, hardware accessories, and engineering products in India.

IndustryBuilding Products & Equipment

SectorIndustrials

Annual revenue₹41 Cr

How does it make money?

Turns over ₹41 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 50.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 2 years revenue moved +379% while net margin moved +152% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+379%

Margin effect+152%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

85/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

11.9x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 87% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -87%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.1x

PEG

0.05

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 10.3% to 16.3% over 2 years.
Return on equity is rising
ROE has improved from 14.6% to 39.9%.
Return on capital is rising
ROCE has improved from 14.6% to 50.7%.
High return on capital employed
ROCE of 50.7% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 205% over 2 years, from ₹1 Cr to ₹4 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 843% against revenue up 379% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 735% against revenue up 379% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 50.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 10.3% to 16.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 87% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 843% against revenue up 379%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 89% a year✓ 118.8% CAGR
Latest reported year was 46.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 48%✓ 50.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹36 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.9x

Cheap

Cheap against the generic band

P/B Ratio

1.65x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.76

Profitable

Profitable on a per-share basis

ROE

46.5%

Strong

Strong capital efficiency

ROCE

50.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

46.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

42.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

20.6%

Good

Assets are working hard

Operating Margin

7.9%

Average

Average margins

Net Margin

9.0%

Average

Average bottom-line conversion

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

103.9 / 98.9

Bullish alignment (short > long)

RSI (14)

36.6

Neutral momentum

Financial Trend (3-Year)

Metric	FY23	FY24	FY25	2Y CAGR
Revenue	₹8 Cr	₹28 Cr	₹41 Cr	+118.8%
EBITDA	₹1 Cr	₹4 Cr	₹7 Cr	+175.6%
EBITDA Margin	10.3%	15.9%	16.3%	—
PAT (Net Profit)	₹0 Cr	₹3 Cr	₹4 Cr	+247.4%
EPS	₹0.88	₹7.5	—	—
ROE	14.6%	46.6%	39.9%	—
ROCE	14.6%	46.5%	50.7%	—
Total Debt	₹1 Cr	₹4 Cr	₹4 Cr	+74.6%
Free Cash Flow	-₹1 Cr	-₹3 Cr	-₹1 Cr	—

🟢 Revenue has grown at 118.8% a year over 2 years.

🟢 EBITDA has grown at 175.6% a year over 2 years.

🟢 EBITDA Margin has risen from 10.3% to 16.3% over 2 years (+6.0 pts).

🟢 PAT (Net Profit) has grown at 247.4% a year over 2 years.

🟢 ROE has risen from 14.6% to 39.9% over 2 years (+25.2 pts).

🟢 ROCE has risen from 14.6% to 50.7% over 2 years (+36.1 pts).

🔴 Total Debt has grown at 74.6% a year over 2 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹20 Cr

Total Liabilities

₹9 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.7%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive5 general

Liotech Industries Bags ₹6.46 Crore Purchase Orders; Shares Slip 4%

HDFC Sky, 28 Jul

Compare with

Equitymaster, 15 Oct

Liotech Industries share price extends losses after listing at a 20% discount to the IPO price

Livemint, 24 Jun

Liotech Industries hosts analyst meeting; FY26 profit up 66%

scanx.trade, 29 SeptResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Liotech Industries shares list at 20% discount from IPO price on BSE SME platform

The Economic Times, 24 Jun

BSE SME Liotech Industries opens with rust on the hinges

Business Standard, 24 Jun

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑