Marine Electricals (India) Limited

Industrials — Electrical Equipment & Parts · NSE

₹427.90−₹12.75 (−2.89%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

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, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Marine Electricals (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Marine Electricals (India) Limited manufactures and sells various marine and industrial electrical and electronic components in India and internationally. The company operates through two segments, Marine and Industry.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees711

Annual revenue₹876 Cr

How does it make money?

Turns over ₹876 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 711 employees supports ₹1.23 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.23 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, 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?Some evidence

ROCE of 16.0% 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 ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +98% while net margin moved +73% 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+98%

Margin effect+73%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 93.2x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 89.2x
✗ P/B of 12.06x is a steep premium to book

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

43/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

93.2x

3Y Median

89.2x

40 monthly readings · mean 89.1x · range 42.7x–192.0x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 89.2x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 88.8x.

vs. its own history

Fair

89.2x median over 40 months · +5%

vs. sector peers

Fair

88.8x median of 3 peers · +5%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

52.0x

PEG

1.83

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 9.2% to 13.3% over 3 years.
Return on equity is rising
ROE has improved from 8.2% to 11.8%.
Return on capital is rising
ROCE has improved from 13.0% to 16.0%.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
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

4 items require attention · 1 high · 3 watch

🔴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.
🟡Debt is increasingFinancial
Total debt is up 35% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹44 Cr in the latest year.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.0%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.2% to 13.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Size brings its own risk
Small 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.

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

1Revenue growth stays above 19% a year✓ 25.6% CAGR
Latest reported year was 55.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 13.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹44 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.0%
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

5 good · 3 neutral · 3 weak

Market Cap

₹5,988 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

93.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

12.06x

Rich

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

EPS (TTM)

₹4.59

Profitable

Profitable on a per-share basis

ROE

11.8%

Moderate

Moderate capital efficiency

ROCE

16.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

55.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

48.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.07%

Modest

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

Free Cash Flow

-₹44 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

9.1%

Average

Average margins

Net Margin

6.6%

Average

Average bottom-line conversion

Current Ratio

2.12

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.09

Market-like

Moves roughly in line with the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

439.6 / 407.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹442 Cr	₹622 Cr	₹767 Cr	₹876 Cr	+25.6%
EBITDA	₹41 Cr	₹61 Cr	₹89 Cr	₹117 Cr	+42.0%
EBITDA Margin	9.2%	9.7%	11.6%	13.3%	—
PAT (Net Profit)	₹17 Cr	₹26 Cr	₹38 Cr	₹58 Cr	+50.9%
EPS	₹1.36	₹2.02	₹2.81	₹4.22	+45.9%
ROE	8.2%	10.3%	9.5%	11.8%	—
ROCE	13.0%	15.5%	14.1%	16.0%	—
Total Debt	₹66 Cr	₹97 Cr	₹55 Cr	₹89 Cr	+10.5%
Free Cash Flow	-₹26 Cr	-₹32 Cr	₹34 Cr	-₹44 Cr	—

🟢 Revenue has grown at 25.6% a year over 3 years.

🟢 EBITDA has grown at 42.0% a year over 3 years.

🟢 EBITDA Margin has risen from 9.2% to 13.3% over 3 years (+4.1 pts).

🟢 PAT (Net Profit) has grown at 50.9% a year over 3 years.

🟢 EPS has grown at 45.9% a year over 3 years.

🟢 ROE has risen from 8.2% to 11.8% over 3 years (+3.7 pts).

🟢 ROCE has risen from 13.0% to 16.0% over 3 years (+3.0 pts).

🔴 Total Debt has grown at 10.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹890 Cr

Total Liabilities

₹389 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

-₹16 Cr

Capex

-₹28 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

0.0%

Corporate Actions

Dividend Rate

₹0.3

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive3 mixed2 general

Marine Electricals (India) Share Price News and Analysis

Univest, 15 Oct

Marine Electricals India shares rally 9% to hit 52-week high on bagging multiple orders worth over ₹393 crore; check details

Upstox, 04 OctPrice 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.

Marine Electricals Gets ₹398.81 Crore Orders; Shares Fall 2.50%

HDFC Sky, 31 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

MARINE Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Price Action: Marine Electricals shares gain 3% on order win, GE Shipping up 4% after Nomura initiates...

Moneycontrol.com, 28 SeptOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

If EPS Growth Is Important To You, Marine Electricals (India) (NSE:MARINE) Presents An Opportunity

Simply Wall Street, 17 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

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