Mac Charles (India) Limited

Industrials — Conglomerates · NSE

₹665.00−₹18.75 (−2.74%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, negative free cash flow, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, though profits are falling even as sales grow. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mac Charles (India) Limited, together with its subsidiaries, is involved in the generation of electricity through wind turbine generators in India. It also constructs and leases commercial real estate properties.

IndustryConglomerates

SectorIndustrials

Employees21

Annual revenue₹9 Cr

How does it make money?

Turns over ₹9 Cr a year. Of every ₹100 of sales, about ₹-1350 reaches shareholders as profit, with ₹996 left at the operating level before interest, tax and depreciation. Each of its 21 employees supports ₹41.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹41.0 lakh

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?Little sign of one

Returns on capital of 1.0% 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.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -20% while net margin moved -443% 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-20%

Margin effect-443%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 100

Weak

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

Valuation

30/ 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

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

27.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 70.0% to 996.3% over 3 years.

🔴 What Needs Attention0

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

Red Flags

6 items require attention · 5 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Debt has risen sharplyFinancial
Total debt is up 183% over 3 years, from ₹532 Cr to ₹1,508 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.1x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹116 Cr in the latest reported year.
🟡Receivables growing faster than salesFinancial
Receivables up 23% against revenue up -20% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 70.0% to 996.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 17.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 23% against revenue up -20%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 994%✓ 996.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 17.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹200 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 0.1x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ 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

Price history

Quick Metrics

1 good · 4 neutral · 6 weak

Market Cap

₹871 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-87.6

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

1.0%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

47.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-9.9%

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

-₹200 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

61.6%

Good

Healthy core-business profitability

Net Margin

-95.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.50

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

RSI (14)

40.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹11 Cr	₹10 Cr	₹9 Cr	-7.3%
EBITDA	₹8 Cr	₹3 Cr	-₹26 Cr	₹86 Cr	+124.5%
EBITDA Margin	70.0%	30.9%	-264.8%	996.3%	—
PAT (Net Profit)	₹43 Cr	-₹66 Cr	-₹106 Cr	-₹116 Cr	—
EPS	₹32.49	₹-50.52	₹-80.74	₹-88.75	—
ROE	17.7%	-37.8%	-103.2%	—	—
ROCE	10.5%	0.4%	-1.9%	1.0%	—
Total Debt	₹532 Cr	₹827 Cr	₹1,051 Cr	₹1,508 Cr	+41.5%
Free Cash Flow	-₹185 Cr	-₹138 Cr	-₹348 Cr	-₹200 Cr	—

🔴 Revenue has shrunk at 7.3% a year over 3 years.

🟢 EBITDA has grown at 124.5% a year over 3 years.

🟢 EBITDA Margin has risen from 70.0% to 996.3% over 3 years (+926.2 pts).

🔴 PAT (Net Profit) has turned negative, from ₹43 Cr to -₹116 Cr.

🔴 EPS has turned negative, from ₹32.49 to ₹-88.75.

🔴 ROCE has fallen from 10.5% to 1.0% over 3 years (-9.4 pts).

🔴 Total Debt has grown at 41.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,581 Cr

Total Liabilities

₹1,592 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹65 Cr

Capex

-₹135 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.3%

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 positive1 negative4 general

Mac Charles India Stock Signals to Watch This Week

Univest, 25 Sept

Mac Charles (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Zerodha founders Nithin, Nikhil Kamath pick up 6.72% stake in Viceroy Hotels

The Economic Times, 05 Oct

EPDPL pledges 51% Mac Charles stake to secure Calatheas debt

scanx.trade, 01 AugOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Genus Power Infrastructures consolidated net profit rises 43.20% in the June 2026 quarter

Business Standard, 14 AugResults

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

India Glycols (INDIAGLYCO.NS) Gains 1.71% to ₹1190.5: Key Levels in Focus - Percent Above MA

https://www.siam.in/, 26 Aug

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

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Mac Charles (India) Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑