Meera Industries Limited

Industrials — Specialty Industrial Machinery · BSE

₹27.00+₹0.62 (+2.35%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Meera Industries Limited manufactures and sells customized textile machinery and machinery parts in India and the United States.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Annual revenue₹38 Cr

How does it make money?

Turns over ₹38 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation.

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 5.1% 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.

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +89% while net margin moved -138% 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+89%

Margin effect-138%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 5.1% is below 10% — capital is not working hard
✓ ROCE has improved by 10.1 points over the period — returns are strengthening
✗ EBITDA margin of 9.6% is thin — little cushion if costs rise
✗ Net margin of 2.2% is slim
• Revenue has compounded at 23.5% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

52/ 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

69.2x

2Y Median

63.3x

28 monthly readings · mean 69.0x · range 22.7x–165.9x

Sector Median

66.2x

median of 4 sector peers

🟡Currently trading close to its 2y median of 63.3x — 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 66.2x.

vs. its own history

Fair

63.3x median over 28 months · +9%

vs. sector peers

Fair

66.2x median of 4 peers · +5%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

17.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -1.2% to 9.6% over 3 years.
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 -5.5% to 3.3%.
Return on capital is rising
ROCE has improved from -4.9% to 5.1%.
Very low debt
Debt/Equity of 0.20x 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 491% over 3 years, from ₹1 Cr to ₹6 Cr.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 27.4x to 2.8x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -1.2% to 9.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹5 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

1Revenue growth stays above 18% a year✓ 23.5% CAGR
Latest reported year was 17.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

5 / 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 · 2 neutral · 4 weak

Market Cap

₹58 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

69.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.93x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.39

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

5.1%

Weak

Low return on total capital employed

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

17.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-12.0%

Falling

Profits are shrinking

Dividend Yield

3.70%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.5%

Average

Average margins

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

27.6 / 31.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹30 Cr	₹40 Cr	₹38 Cr	+23.5%
EBITDA	-₹0 Cr	₹3 Cr	₹6 Cr	₹4 Cr	—
EBITDA Margin	-1.2%	9.9%	15.3%	9.6%	—
PAT (Net Profit)	-₹1 Cr	₹1 Cr	₹4 Cr	₹1 Cr	—
EPS	₹-0.65	₹0.69	₹1.74	₹0.46	—
ROE	-5.5%	5.6%	12.8%	3.3%	—
ROCE	-4.9%	5.6%	13.9%	5.1%	—
Total Debt	₹1 Cr	₹4 Cr	₹8 Cr	₹6 Cr	+80.8%
Free Cash Flow	-₹0 Cr	-₹2 Cr	-₹3 Cr	₹5 Cr	—

🟢 Revenue has grown at 23.5% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹4 Cr.

🟢 EBITDA Margin has risen from -1.2% to 9.6% over 3 years (+10.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-0.65 to ₹0.46.

🟢 ROE has risen from -5.5% to 3.3% over 3 years (+8.8 pts).

🟢 ROCE has risen from -4.9% to 5.1% over 3 years (+10.1 pts).

🔴 Total Debt has grown at 80.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹45 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.8%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

28 Nov 2025

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

2 positive4 general

Meera Industries Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Meera Industries Share Split Triggers 1.88% Rise As Company Fixes March 6 As Record Date

HDFC Sky, 06 Mar

Meera Industries schedules AGM to appoint Het Desai as executive director

scanx.trade, 31 Aug

1 Share Becomes 2! Small-Cap Stock Confirms Stock Split Timeline; Here’s What It Means

Goodreturns, 17 FebCapital return

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

Meera Industries secures ₹7.95 Cr order from DNB Textiles

scanx.trade, 01 Jul

Dividend, bonus, stock-split announcements put these 5 shares in spotlight

Business Standard, 27 NovCapital return

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

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingProfitability · Valuation

WeakBusiness Quality · Risk

Points for each in the Score ↑

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

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑