Maestros Electronics & Telecommunications Systems Limited

Healthcare — Medical Devices · BSE

₹88.90−₹4.65 (−4.97%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

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

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Maestros Electronics & Telecommunications Systems Limited manufactures and sells medical equipment and telemedicine products. It operates through three segments: Medical, Electronics and Instrumentation, and Telemedicine.

IndustryMedical Devices

SectorHealthcare

Employees91

Annual revenue₹39 Cr

How does it make money?

Turns over ₹39 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 91 employees supports ₹43.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹43.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD, DR. REDDY S LABORATORIES, APOLLO HOSPITALS ENTER. L. 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 18.2% 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 ROE14.5%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +60% while net margin moved +52% 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+60%

Margin effect+52%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.13 — historically steadier than the index
✗ 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

74/ 100

Good

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

Valuation

81/ 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

13.2x

3Y Median

17.4x

40 monthly readings · mean 18.0x · range 6.8x–31.4x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 24% below its 3y median of 17.4x. 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 60% below the peer median of 33.3x.

vs. its own history

Cheap

17.4x median over 40 months · -24%

vs. sector peers

Cheap

33.3x median of 4 peers · -60%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.9x

PEG

0.38

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 19.1% to 25.4% over 3 years.
Debt is being paid down
Total debt is down 66% over 3 years.
Return on equity is rising
ROE has improved from 11.7% to 17.2%.
Return on capital is rising
ROCE has improved from 16.0% to 18.2%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 3.84x — earnings must service borrowings before shareholders see anything.
🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.2% 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.
Margin expansion has further to run
EBITDA margin has risen from 19.1% to 25.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 66% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 24% 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 60% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.84x. Interest is payable whether or not the business has a good year.
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
2 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✓ 17.0% CAGR
Latest reported year was -3.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 23%✓ 25.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

₹98 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.2x

Cheap

Cheap against the generic band

P/B Ratio

2.32x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.71

Profitable

Profitable on a per-share basis

ROE

17.2%

Strong

Strong capital efficiency

ROCE

18.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.84x

High

High leverage

Revenue Growth (YoY)

-3.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

9.4%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

17.4%

Good

Healthy core-business profitability

Net Margin

18.9%

Good

Strong bottom-line conversion

Current Ratio

3.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

100.6 / 132.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹25 Cr	₹33 Cr	₹29 Cr	₹39 Cr	+17.0%
EBITDA	₹5 Cr	₹8 Cr	₹6 Cr	₹10 Cr	+28.8%
EBITDA Margin	19.1%	22.6%	21.5%	25.4%	—
PAT (Net Profit)	₹3 Cr	₹5 Cr	₹4 Cr	₹7 Cr	+34.5%
EPS	₹5.41	₹8.96	₹7.94	₹13.16	+34.5%
ROE	11.7%	16.2%	12.5%	17.2%	—
ROCE	16.0%	23.5%	13.7%	18.2%	—
Total Debt	₹5 Cr	₹5 Cr	₹4 Cr	₹2 Cr	-30.3%
Free Cash Flow	-₹7 Cr	₹3 Cr	₹3 Cr	-₹0 Cr	—

🟢 Revenue has grown at 17.0% a year over 3 years.

🟢 EBITDA has grown at 28.8% a year over 3 years.

🟢 EBITDA Margin has risen from 19.1% to 25.4% over 3 years (+6.3 pts).

🟢 PAT (Net Profit) has grown at 34.5% a year over 3 years.

🟢 EPS has grown at 34.5% a year over 3 years.

🟢 ROE has risen from 11.7% to 17.2% over 3 years (+5.6 pts).

🟢 ROCE has risen from 16.0% to 18.2% over 3 years (+2.2 pts).

🟢 Total Debt has shrunk at 30.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹65 Cr

Total Liabilities

₹22 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.2%

Corporate Actions

Ex-Dividend Date

20 Aug 2021

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

1 positive1 mixed4 general

Maestros Electronics & Telecommunications Systems Lower Circuit Today

Univest, 16 Oct

Maestros Electronics fixes Oct 1 record date for 1:1 bonus issue

scanx.trade, 01 OctCapital return

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

Maestros Electronics & Telecommunications Systems Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Maestros Elect Consolidated March 2026 Net Sales at Rs 11.92 crore, up 51.35% Y-o-Y

Moneycontrol.com, 09 Jun

METSL Share Price Rises 8.46% on Fundamentals

Univest, 01 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Maestros Electronics & Telecommunications Systems Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

Revenue growth is negative (-3.2%) on the latest reported period — check if this is one-off or a trend.
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

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

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. 2 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 ↑