Majestic Auto Limited

Real Estate — Real Estate Services · NSE

₹378.00+₹4.80 (+1.29%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, 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. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Majestic Auto Limited provides facility management and rental services in India.

IndustryReal Estate Services

SectorReal Estate

Employees25

Annual revenue₹35 Cr

How does it make money?

Turns over ₹35 Cr a year. Of every ₹100 of sales, about ₹259 reaches shareholders as profit, with ₹136 left at the operating level before interest, tax and depreciation. Each of its 25 employees supports ₹1.42 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.42 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY 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 19.5% 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 ROE10.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -29% while net margin moved +3293% 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-29%

Margin effect+3293%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.30 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

68/ 100

Good

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

Valuation

87/ 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

4.1x

Sector Median

30.2x

median of 3 sector peers

🟢Against its sector it trades 87% below the peer median of 30.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

30.2x median of 3 peers · -87%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.6x

PEG

0.02

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 73.7% to 135.9% over 3 years.
Debt is being paid down
Total debt is down 90% over 3 years.
Return on equity is rising
ROE has improved from 0.9% to 13.7%.
Return on capital is rising
ROCE has improved from 4.5% to 19.5%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.28x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹17 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.5% 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 73.7% to 135.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 90% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.28x. Interest is payable whether or not the business has a good year.
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
2 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

1EBITDA margin holds above 134%✓ 135.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹17 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 16%✓ 19.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 2 neutral · 2 weak

Market Cap

₹393 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.1x

Cheap

Cheap against the generic band

P/B Ratio

0.59x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹92.96

Profitable

Profitable on a per-share basis

ROE

13.7%

Moderate

Moderate capital efficiency

ROCE

19.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.28x

High

High leverage

Revenue Growth (YoY)

102.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

31.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

13.23%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹17 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-14.1%

Weak

Thin margins leave little room for error

Net Margin

483.4%

Good

Strong bottom-line conversion

Current Ratio

33.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

367.9 / 372.7

Bearish alignment (short < long)

RSI (14)

62.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹50 Cr	₹83 Cr	₹64 Cr	₹35 Cr	-10.6%
EBITDA	₹37 Cr	₹69 Cr	₹45 Cr	₹48 Cr	+9.6%
EBITDA Margin	73.7%	82.4%	69.5%	135.9%	—
PAT (Net Profit)	₹4 Cr	₹32 Cr	₹7 Cr	₹92 Cr	+189.3%
EPS	₹3.64	₹30.79	₹6.55	₹88.14	+189.3%
ROE	0.9%	5.2%	1.1%	13.7%	—
ROCE	4.5%	9.8%	3.9%	19.5%	—
Total Debt	₹160 Cr	₹153 Cr	₹141 Cr	₹15 Cr	-54.3%
Free Cash Flow	₹32 Cr	₹74 Cr	-₹17 Cr	-₹17 Cr	—

🔴 Revenue has shrunk at 10.6% a year over 3 years.

🟢 EBITDA has grown at 9.6% a year over 3 years.

🟢 EBITDA Margin has risen from 73.7% to 135.9% over 3 years (+62.2 pts).

🟢 PAT (Net Profit) has grown at 189.3% a year over 3 years.

🟢 EPS has grown at 189.3% a year over 3 years.

🟢 ROE has risen from 0.9% to 13.7% over 3 years (+12.8 pts).

🟢 ROCE has risen from 4.5% to 19.5% over 3 years (+15.0 pts).

🟢 Total Debt has shrunk at 54.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹32 Cr to -₹17 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹696 Cr

Total Liabilities

₹27 Cr

Cash & Equivalents

₹91 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.2%

Corporate Actions

Dividend Rate

₹50

Ex-Dividend Date

10 Aug 2026

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

4 positive2 general

Dividend champions of auto ancillaries: Majestic Auto, PTL, or Banco Products - Who drives home the highest yield?

Livemint, 16 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Majestic Auto sells SHPL securities for ₹105.43 cr; subsidiary ceases

scanx.trade, 29 Sept

Majestic Auto consolidated net profit rises 38.22% in the June 2026 quarter

Business Standard, 11 AugResults

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

Majestic Auto - Top 10 stocks with 7-14% dividend yields. Do you own any?

The Economic Times, 04 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Majestic Auto Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Special dividend stocks: TCS, JSW Dulux, Premco Global, Honda India Power in 6 firms offering extra payout

IndiaIPO, 11 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability · Valuation

MiddlingFinancial Health · Growth

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. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 4 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑