Mamata Machinery Limited

Industrials — Specialty Industrial Machinery · NSE

₹390.40−₹0.20 (−0.05%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. 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 Mamata Machinery Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mamata Machinery Limited engages in the bag and pouch making system business in India, North America, and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees260

Annual revenue₹231 Cr

How does it make money?

Turns over ₹231 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 260 employees supports ₹88.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹88.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS 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?Little sign of one

Returns on capital of 10.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +16% while net margin moved -43% 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+16%

Margin effect-43%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ P/E of 107.5x is demanding — it needs sustained high growth to justify
✗ P/E is 69% above its own historical median of 63.8x — expensive by its own standards
✗ P/B of 5.19x is a steep premium to book

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

23/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

107.5x

2Y Median

63.8x

24 monthly readings · mean 122.1x · range 18.1x–392.7x

Sector Median

66.2x

median of 4 sector peers

⚠️Current valuation is approximately 69% above its 2y median of 63.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 62% above the peer median of 66.2x.

vs. its own history

Expensive

63.8x median over 24 months · +69%

vs. sector peers

Expensive

66.2x median of 4 peers · +62%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

35.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 58% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 17.6% to 8.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 22.1% to 10.4% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 4.50x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.5 points, from 17.3% to 11.8%.
🔴Receivables growing faster than salesFinancial
Receivables up 130% against revenue up 16% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹5 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 33% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 58% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Margins are being competed away
EBITDA margin has fallen from 17.3% to 11.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.50x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 130% against revenue up 16%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 69% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 5.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

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

1EBITDA margin holds above 10%✓ 11.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 5.2% CAGR
Latest reported year was -6.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

2 / 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

1 good · 4 neutral · 6 weak

Market Cap

₹961 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

107.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.19x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹3.63

Profitable

Profitable on a per-share basis

ROE

8.1%

Moderate

Moderate capital efficiency

ROCE

10.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.50x

High

High leverage

Revenue Growth (YoY)

-6.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-63.1%

Falling

Profits are shrinking

Dividend Yield

0.13%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-15.9%

Weak

Thin margins leave little room for error

Net Margin

3.9%

Average

Average bottom-line conversion

Current Ratio

2.14

Comfortable

Healthy short-term liquidity

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

398.8 / 406.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹198 Cr	₹234 Cr	₹251 Cr	₹231 Cr	+5.2%
EBITDA	₹34 Cr	₹51 Cr	₹59 Cr	₹27 Cr	-7.4%
EBITDA Margin	17.3%	21.8%	23.6%	11.8%	—
PAT (Net Profit)	₹23 Cr	₹36 Cr	₹41 Cr	₹15 Cr	-12.5%
EPS	₹9.15	₹1.45	₹16.56	₹6.12	-12.5%
ROE	17.6%	27.0%	23.8%	8.1%	—
ROCE	22.1%	34.8%	31.7%	10.4%	—
Total Debt	₹20 Cr	₹13 Cr	₹5 Cr	₹8 Cr	-25.2%
Free Cash Flow	₹16 Cr	₹39 Cr	₹70 Cr	-₹5 Cr	—

🟢 Revenue has grown at 5.2% a year over 3 years.

🔴 EBITDA has shrunk at 7.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 17.3% to 11.8% over 3 years (-5.5 pts).

🔴 PAT (Net Profit) has shrunk at 12.5% a year over 3 years.

🔴 EPS has shrunk at 12.5% a year over 3 years.

🔴 ROE has fallen from 17.6% to 8.1% over 3 years (-9.5 pts).

🔴 ROCE has fallen from 22.1% to 10.4% over 3 years (-11.7 pts).

🟢 Total Debt has shrunk at 25.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹16 Cr to -₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹268 Cr

Total Liabilities

₹83 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

67.1%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

31 Jul 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 mixed5 general

MAMATA MACHINERY LIMITED Share Price

Upstox, 16 Oct

Mamata Machinery (MAMATA.NS) Slips 1.62% to ₹385.15, Holds Mid-Range Above Key Support - Pullback Trade

https://www.siam.in/, 13 Oct

Mamata Machinery vs Nifty 50: Share Price Performance Compared

Univest, 05 Oct

Compare with

Equitymaster, 08 Oct

Solidarity Advisors raises Mamata Machinery stake to 7.03%

scanx.trade, 31 Jul

Mamata Machinery Limited (MAMATA.NS): Shares Edge Up 0.84% to ₹402.85 - Low Volume Node

https://www.siam.in/, 29 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Revenue growth is negative (-6.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 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 ↑