Mazda Limited

Industrials — Specialty Industrial Machinery · NSE

₹292.00−₹15.65 (−5.09%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, 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, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Mazda Limited manufactures and sells engineering goods in India and internationally. The company operates in two segments, Engineering Products and Food Products.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees238

Annual revenue₹210 Cr

How does it make money?

Turns over ₹210 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 238 employees supports ₹88.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin17.0%

Net margin13.1%

Revenue / employee₹88.3 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.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Little sign of one

Returns on capital of 14.1% 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.

ROCE14.1%

ROE11.0%

Peer median ROE17.1%

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 +11% while net margin moved -7% 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+11%

Margin effect-7%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.5% — barely ahead of inflation
✗ Profit CAGR of only 1.1%

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

56/ 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.

Historical Valuation

Current P/E

19.5x

3Y Median

18.7x

40 monthly readings · mean 18.5x · range 13.0x–23.0x

Sector Median

66.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 18.7x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 70% below the peer median of 66.2x.

vs. its own history

Fair

18.7x median over 40 months · +4%

vs. sector peers

Cheap

66.2x median of 4 peers · -70%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

19.5x

P/B

1.97x

EV/EBITDA

16.2x

PEG

17.88

Dividend Yield

1.37%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 20.1% to 17.0% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 14.3% to 11.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.8% to 14.1% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 61% against revenue growth of 11% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 86% against revenue growth of 11% — stock may not be moving.

Red Flags

5 items require attention · 3 high · 2 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.
🔴Receivables growing faster than salesFinancial
Receivables up 61% against revenue up 11% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 86% against revenue up 11% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹23 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 70% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 20.1% to 17.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 61% against revenue up 11%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 3.5% 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.
Returns on shareholder capital are falling
ROE has dropped from 14.3% to 11.0%. 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.

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

1EBITDA margin holds above 15%✓ 17.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹23 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 3.5% CAGR
Latest reported year was 61.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4ROCE stays above 11%✓ 14.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 18.7x✓ 19.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

3 good · 7 neutral · 1 weak

Market Cap

₹585 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.5x

Fair

Fairly valued against the generic band

P/B Ratio

1.97x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.95

Profitable

Profitable on a per-share basis

ROE

11.0%

Moderate

Moderate capital efficiency

ROCE

14.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

61.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

49.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.37%

Modest

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

Free Cash Flow

-₹23 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹292

Operating Margin

7.7%

Average

Average margins

Net Margin

12.3%

Good

Strong bottom-line conversion

Current Ratio

4.08

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.11

Defensive

Steadier than the market

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

282.8 / 262.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

55.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹190 Cr	₹225 Cr	₹192 Cr	₹210 Cr	+3.5%
EBITDA	₹38 Cr	₹46 Cr	₹31 Cr	₹36 Cr	-2.1%
EBITDA Margin	20.1%	20.6%	16.0%	17.0%	—
PAT (Net Profit)	₹27 Cr	₹32 Cr	₹25 Cr	₹28 Cr	+1.1%
EPS	₹13.3	₹15.74	₹12.41	₹13.74	+1.1%
ROE	14.3%	14.9%	10.8%	11.0%	—
ROCE	18.8%	19.5%	14.0%	14.1%	—
Free Cash Flow	₹19 Cr	₹40 Cr	₹7 Cr	-₹23 Cr	—

🟢 Revenue has grown at 3.5% a year over 3 years.

🔴 EBITDA has shrunk at 2.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 20.1% to 17.0% over 3 years (-3.1 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.1% a year).

🟡 EPS has been broadly flat over 3 years (1.1% a year).

🔴 ROE has fallen from 14.3% to 11.0% over 3 years (-3.3 pts).

🔴 ROCE has fallen from 18.8% to 14.1% over 3 years (-4.7 pts).

🔴 Free Cash Flow has turned negative, from ₹19 Cr to -₹23 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹315 Cr

Total Liabilities

₹66 Cr

Total Debt

—

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹19 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

59.5%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

04 Sept 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

Mazda Ltd. Share Price Near 52-Week High, Rs 623 Cr Cap

Univest, 14 Oct

Is Mazda Motor (TSE:7261) Undervalued On Its Yazaki Robotics Tie Up?

Simply Wall Street, 18 OctPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

Mazda Ltd. Share Price News: Price Action and Fundamentals

Univest, 12 Oct

Mazda stock stands 11.60 percent above its 52-week low

ad-hoc-news.de, 15 Oct

Mazda’s Return To Profitability And Reaffirmed Guidance Might Change The Case For Investing In Mazda Motor (TSE:7261)

Yahoo Finance, 09 Aug

Bernstein sets JPY 1,100.00 target for Mazda stock

ad-hoc-news.de, 17 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟡Financial HealthAdequate10.8/20

🔴GrowthWeak7.4/20

🟡ProfitabilityModerate8.2/15

🟡ValuationFair9.3/15

🟡RiskModerate5.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 15%17.0%
✗Free cash flow remains positive-₹23 Cr
✗Revenue growth stays above 4% a year3.5% CAGR
✓ROCE stays above 11%14.1%
✓Valuation vs its own median of 18.7x19.5x today