Mangal Electrical Industries Limited

Industrials — Electrical Equipment & Parts · NSE

₹280.00−₹3.35 (−1.18%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mangal Electrical Industries Limited engages in the manufacture and trade of electrical transformers, cold rolled grain oriented (CRGO) electrical steel, electrical accessories, and other related products under the Mangal Electrical brand name in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees810

Annual revenue₹580 Cr

How does it make money?

Turns over ₹580 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 810 employees supports ₹71.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹71.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, 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 11.5% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +64% 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+64%

Margin effect+7%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

73/ 100

Cheap

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

16.3x

1.3Y Median

17.5x

16 monthly readings · mean 19.1x · range 12.2x–30.8x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 1.3y median of 17.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 82% below the peer median of 88.8x.

vs. its own history

Fair

17.5x median over 16 months · -7%

vs. sector peers

Cheap

88.8x median of 3 peers · -82%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.0x

PEG

0.80

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 53% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 26.3% to 7.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 30.5% to 11.5% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 7.70x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 134% against revenue up 64% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 135% against revenue up 64% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹138 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 53% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 82% 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?

Leverage amplifies any setback
Debt/Equity of 7.70x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 134% against revenue up 64%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 26.3% to 7.3%. 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.
Several serious flags at once
3 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 13% a year✓ 17.8% CAGR
Latest reported year was 40.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹138 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 11.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

4 good · 4 neutral · 3 weak

Market Cap

₹774 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹17.22

Profitable

Profitable on a per-share basis

ROE

7.3%

Weak

Weak capital efficiency

ROCE

11.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

7.70x

High

High leverage

Revenue Growth (YoY)

40.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

49.5%

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

-₹138 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

8.1%

Average

Average margins

Net Margin

7.6%

Average

Average bottom-line conversion

Current Ratio

4.99

Comfortable

Healthy short-term liquidity

52W Range Position

26%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

271.0 / 275.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹354 Cr	₹449 Cr	₹549 Cr	₹580 Cr	+17.8%
EBITDA	₹47 Cr	₹43 Cr	₹82 Cr	₹74 Cr	+16.0%
EBITDA Margin	13.4%	9.6%	14.9%	12.7%	—
PAT (Net Profit)	₹25 Cr	₹21 Cr	₹47 Cr	₹43 Cr	+20.4%
EPS	₹8.95	₹7.58	₹17.12	₹17.46	+24.9%
ROE	26.3%	18.2%	29.2%	7.3%	—
ROCE	30.5%	29.1%	43.5%	11.5%	—
Total Debt	₹97 Cr	₹92 Cr	₹149 Cr	₹45 Cr	-22.2%
Free Cash Flow	₹24 Cr	₹25 Cr	-₹42 Cr	-₹138 Cr	—

🟢 Revenue has grown at 17.8% a year over 3 years.

🟢 EBITDA has grown at 16.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.7% over 3 years.

🟢 PAT (Net Profit) has grown at 20.4% a year over 3 years.

🟢 EPS has grown at 24.9% a year over 3 years.

🔴 ROE has fallen from 26.3% to 7.3% over 3 years (-19.0 pts).

🔴 ROCE has fallen from 30.5% to 11.5% over 3 years (-19.0 pts).

🟢 Total Debt has shrunk at 22.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹24 Cr to -₹138 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹707 Cr

Total Liabilities

₹117 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹101 Cr

Capex

-₹37 Cr

Shareholding (proxy)

Institutional Holding

4.1%

Insider Holding

74.8%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

2 mixed4 general

Mangal Electrical Industries Share Price Forecast to 2030

Univest, 21 Jul

Mangal Electrical Industries Reports Q1 Revenue Of 1.26B Rupees; Net Profit Reaches 75M Rupees

Sahi, 29 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Why Investors Shouldn't Be Surprised By Mangal Electrical Industries Limited's (NSE:MEIL) 30% Share Price Plunge

Simply Wall Street, 31 JanPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Mangal Electrical Industries Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Mangal Electrical Industries Ltd | Stock Share Price Live

MarketSmith India, 02 Apr

Mangal Electrical IPO subscribed nearly 7 times so far on day 3; check allotment steps and key details

Upstox, 03 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health

WeakProfitability · 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. 3 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 ↑