Maxgrow India Limited

Industrials — Staffing & Employment Services · BSE

₹203.45+₹3.95 (+1.98%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Maxgrow India Limited provides human resource services in India. The company was formerly known as Inanna Fashion and Trends Limited. Maxgrow India Limited was incorporated in 1994 and is based in Mumbai, India.

IndustryStaffing & Employment Services

SectorIndustrials

Employees2

Annual revenue₹22,426 Cr

How does it make money?

Turns over ₹22,426 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹11213.17 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11213.17 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB 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 21.7% 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 ROE15.2%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.63 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

88/ 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

1.5x

1.3Y Median

6.1x

16 monthly readings · mean 4.9x · range 1.4x–11.9x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 75% below its 1.3y median of 6.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 98% below the peer median of 88.8x.

vs. its own history

Cheap

6.1x median over 16 months · -75%

vs. sector peers

Cheap

88.8x median of 3 peers · -98%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

1.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -0.4% to 21.7%.
Return on capital is rising
ROCE has improved from -0.4% to 21.7%.
High return on capital employed
ROCE of 21.7% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.07x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1801% over 3 years, from ₹0 Cr to ₹2 Cr.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1066% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.7% 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.
Priced below its own history
The stock trades 75% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 98% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹211 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 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.

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

1EBITDA margin holds above 0%✓ 2.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹211 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 19%✓ 21.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 6.1x✓ 1.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 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

9 good · 2 neutral · 0 weak

Market Cap

₹813 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.5x

Cheap

Cheap against the generic band

P/B Ratio

0.64x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹136.45

Profitable

Profitable on a per-share basis

ROE

21.7%

Strong

Strong capital efficiency

ROCE

21.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.07x

Low

Conservative leverage

Revenue Growth (YoY)

108.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

190.2%

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

₹211 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

2.7%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

178.8 / 156.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

86.7

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹2,758 Cr	₹22,426 Cr	—
EBITDA	-₹0 Cr	-₹0 Cr	₹80 Cr	₹451 Cr	—
EBITDA Margin	—	—	2.9%	2.0%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹30 Cr	₹450 Cr	—
EPS	₹-0.19	₹-0.19	₹7.42	₹112.72	—
ROE	-0.4%	-0.5%	2.0%	21.7%	—
ROCE	-0.4%	-0.5%	3.4%	21.7%	—
Total Debt	₹0 Cr	₹0 Cr	₹297 Cr	₹2 Cr	+166.9%
Free Cash Flow	-₹0 Cr	-₹0 Cr	₹41 Cr	₹211 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹451 Cr.

🟡 EBITDA Margin has held roughly flat at 2.0% over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹450 Cr.

🟢 EPS has turned positive, from ₹-0.19 to ₹112.72.

🟢 ROE has risen from -0.4% to 21.7% over 3 years (+22.1 pts).

🟢 ROCE has risen from -0.4% to 21.7% over 3 years (+22.1 pts).

🔴 Total Debt has grown at 166.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹211 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,966 Cr

Total Liabilities

₹893 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹211 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

96.8%

Peer Comparison

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

Recent News

1 positive5 general

Maxgrow India Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 05 Oct

Maxgrow India acquires 74% stake in Hurricane Windfarms for ₹525 per share

scanx.trade, 13 Oct

Maxgrow India: వినూత్న అడుగు.. రూ. 5.83 కోట్లతో Hurricane Windfarms కొనుగోలు

Whalesbook, 13 Oct

Maxgrow India Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Maxgrow India Ltd. | Stock Share Price Live

MarketSmith India, 12 Jun

Maxgrow India consolidated net profit rises 190.19% in the June 2026 quarter

Business Standard, 24 AugResults

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

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Profitability · Valuation

MiddlingBusiness Quality · 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. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑