Master Components Limited

Sector n/a · NSE

₹312.00−₹13.00 (−4.00%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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, 6:51 pm

Understanding the Business

The 60-second version of Master Components 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 ₹74 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.

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.0%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +259% while net margin moved +21% 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+259%

Margin effect+21%

DalalBaazaar Score

70/ 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

80/ 100

Excellent

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

Valuation

60/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

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

10.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Return on equity is rising
ROE has improved from 14.7% to 20.2%.
Return on capital is rising
ROCE has improved from 20.3% to 25.0%.
High return on capital employed
ROCE of 25.0% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.30x 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

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 1056% over 3 years, from ₹1 Cr to ₹11 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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.0% 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.
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?

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

1Revenue growth stays above 40% a year✓ 53.2% CAGR
Latest reported year was 75.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹125 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)

₹1,861

Profitable

Profitable on a per-share basis

ROE

20.2%

Strong

Strong capital efficiency

ROCE

25.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

75.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.6%

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

Gross Margin

45.0%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

10.0%

Good

Strong bottom-line conversion

Current Ratio

1.72

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

400.8 / 428.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹21 Cr	₹25 Cr	₹42 Cr	₹74 Cr	+53.2%
EBITDA	₹3 Cr	₹5 Cr	₹7 Cr	₹12 Cr	+53.8%
EBITDA Margin	16.2%	18.0%	16.1%	16.4%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹6 Cr	₹7 Cr	+63.3%
EPS	₹4.27	₹7.33	₹16.23	₹1,861	+657.9%
ROE	14.7%	11.6%	22.0%	20.2%	—
ROCE	20.3%	15.4%	28.5%	25.0%	—
Total Debt	₹1 Cr	-₹0 Cr	₹4 Cr	₹11 Cr	+126.1%
Free Cash Flow	₹1 Cr	-₹2 Cr	-₹10 Cr	-₹3 Cr	—

🟢 Revenue has grown at 53.2% a year over 3 years.

🟢 EBITDA has grown at 53.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 16.4% over 3 years.

🟢 PAT (Net Profit) has grown at 63.3% a year over 3 years.

🟢 EPS has grown at 657.9% a year over 3 years.

🟢 ROE has risen from 14.7% to 20.2% over 3 years (+5.6 pts).

🟢 ROCE has risen from 20.3% to 25.0% over 3 years (+4.7 pts).

🔴 Total Debt has grown at 126.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹59 Cr

Total Liabilities

₹22 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹6 Cr

Recent News

1 positive5 general

Three Days Left Until Master Components Limited (NSE:MASTER) Trades Ex-Dividend

Simply Wall Street, 19 JunCapital return

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

BHAVIK ENTERPRISES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

NCLT approves Master Components amalgamation with Master Moulds

scanx.trade, 15 Jun

802,000 Equity Shares of Master Components Limited are subject to a Lock-Up Agreement Ending on 5-OCT-2026.

www.marketscreener.com, 04 Oct

Master Components share price makes muted debut on NSE SME; lists at ₹140.40

Livemint, 29 Sept

Master Components wins ₹50.94 lakh order for EV equipment

scanx.trade, 22 Jun

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 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 ↑