Mandeep Auto Industries Limited

Sector n/a · NSE

₹59.15−₹1.95 (−3.19%)

DalalBaazaar Score

42 / 100

🟡 Moderate

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: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. 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

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

How does it make money?

Turns over ₹37 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 4.0% 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.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +28% while net margin moved -14% 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+28%

Margin effect-14%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

18/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

25.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 78% 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 23.1% to 2.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.5% to 4.0% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴High leverageFinancial
Debt/Equity of 4.50x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 99% against revenue up 28% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 78% 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?

Leverage amplifies any setback
Debt/Equity of 4.50x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 23.1% to 2.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
3 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 5%✓ 6.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 6% a year✓ 8.5% CAGR
Latest reported year was 15.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 4.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

2 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 5 neutral · 5 weak

Market Cap

₹68 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

2.8%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

4.50x

High

High leverage

Revenue Growth (YoY)

15.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-18.4%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

13.2%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

5.67

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

18.1 / 18.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹29 Cr	₹25 Cr	₹32 Cr	₹37 Cr	+8.5%
EBITDA	₹2 Cr	₹4 Cr	₹2 Cr	₹2 Cr	+9.4%
EBITDA Margin	6.5%	16.0%	7.0%	6.7%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹1 Cr	₹1 Cr	+3.1%
EPS	₹1.01	₹2.06	₹1.44	—	—
ROE	23.1%	24.5%	4.1%	2.8%	—
ROCE	23.5%	27.5%	5.1%	4.0%	—
Total Debt	₹8 Cr	₹8 Cr	₹2 Cr	₹2 Cr	-39.5%
Free Cash Flow	-₹2 Cr	-₹14 Cr	-₹13 Cr	-₹4 Cr	—

🟢 Revenue has grown at 8.5% a year over 3 years.

🟢 EBITDA has grown at 9.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 6.7% over 3 years.

🟢 PAT (Net Profit) has grown at 3.1% a year over 3 years.

🔴 ROE has fallen from 23.1% to 2.8% over 3 years (-20.3 pts).

🔴 ROCE has fallen from 23.5% to 4.0% over 3 years (-19.5 pts).

🟢 Total Debt has shrunk at 39.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹49 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹6 Cr

Recent News

6 general

Top 56 Auto Ancillary Stocks In India For October 2026

Samco, 08 Oct

Mandeep Auto Industries makes dismal start, lists at 7% discount on NSE SME

Moneycontrol.com, 21 May

ADROIT INDUSTRIES (INDIA) LTD Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 30 Sept

Mandeep Auto Industries IPO opens next week: From price band to key dates - all you need to know

Livemint, 10 May

Mandeep Auto Industries IPO allotment status likely to be finalised on May 16, check details

Upstox, 15 May

Mandeep Auto Industries Debuts at 7.1% Discount, Off to a Slow Start on NSE SME!

Alice Blue, 21 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · 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.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑