Mewar Hi-Tech Engineering Limited

Industrials — Specialty Industrial Machinery · BSE

₹63.66₹0.00 (0.00%)

DalalBaazaar Score

34 / 100

🔴 Weak

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, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mewar Hi-Tech Engineering Limited manufactures and sells crushers, screens, and customized size reduction equipment in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Annual revenue₹47 Cr

How does it make money?

Turns over ₹47 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹14 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?Some evidence

ROCE of 18.7% 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 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 -9% while net margin moved +1% 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-9%

Margin effect+1%

DalalBaazaar Score

34/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.2% a year
✗ Profit has declined at 2.9% a year
✗ Profit fell 74.6% in the latest year

Quality vs. Valuation

Company Quality

33/ 100

Weak

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

Valuation

62/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

28.3x

3Y Median

20.3x

40 monthly readings · mean 21.4x · range 7.5x–63.1x

Sector Median

66.2x

median of 4 sector peers

⚠️Current valuation is approximately 39% above its 3y median of 20.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 57% below the peer median of 66.2x.

vs. its own history

Expensive

20.3x median over 40 months · +39%

vs. sector peers

Cheap

66.2x median of 4 peers · -57%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 12.3% to 7.0% — each rupee of shareholder capital earns less than it did.

Red Flags

4 items require attention · 2 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 1.90x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.5x to 1.6x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.7% 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.
Cheaper than its peers
It trades 57% 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?

The debt load needs earnings to hold up
Debt is 3.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 39% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 12.3% to 7.0%. 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.
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 12%✓ 14.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.5x
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✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 16%✓ 18.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

2 good · 4 neutral · 5 weak

Market Cap

₹25 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.25

Profitable

Profitable on a per-share basis

ROE

7.3%

Weak

Weak capital efficiency

ROCE

18.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.90x

High

High leverage

Revenue Growth (YoY)

-6.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-74.6%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

5.0%

Average

Average asset productivity

Operating Margin

7.4%

Average

Average margins

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.15

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

59.4 / 60.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹52 Cr	₹44 Cr	₹51 Cr	₹47 Cr	-3.2%
EBITDA	₹8 Cr	₹6 Cr	₹8 Cr	₹7 Cr	-4.7%
EBITDA Margin	15.0%	13.9%	15.9%	14.3%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹3 Cr	₹1 Cr	-2.9%
EPS	₹2.46	₹2.56	₹7.31	—	—
ROE	12.3%	11.4%	24.5%	7.0%	—
ROCE	20.5%	23.9%	31.7%	18.7%	—
Total Debt	₹25 Cr	₹22 Cr	₹21 Cr	₹24 Cr	-2.3%
Free Cash Flow	-₹1 Cr	₹5 Cr	₹3 Cr	-₹2 Cr	—

🔴 Revenue has shrunk at 3.2% a year over 3 years.

🔴 EBITDA has shrunk at 4.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 14.3% over 3 years.

🔴 PAT (Net Profit) has shrunk at 2.9% a year over 3 years.

🔴 ROE has fallen from 12.3% to 7.0% over 3 years (-5.3 pts).

🔴 ROCE has fallen from 20.5% to 18.7% over 3 years (-1.7 pts).

🟢 Total Debt has shrunk at 2.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹47 Cr

Total Liabilities

₹34 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.2%

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

Mewar Hi-Tech Engineering 20th AGM resolutions pass with full majority

scanx.trade, 30 Sept

Engineering Machine Tools Penny Stocks 2027: 5 Picks

Univest, 18 Sept

SJP ULTRASONICS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 08 Oct

Mewar Hi-Tech Engineering sets Sept 23 as record date for 20th AGM

scanx.trade, 08 Sept

MPF Systems Ltd. (MPFSL) Share Price Surges 149% Today

Univest, 27 JulPrice 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.

Hy-Tech Engineers IPO Day 2: Issue subscribed 15.13x so far. GMP hints 57% listing gain. Apply or not?

Livemint, 25 Aug

Watch Items

Revenue growth is negative (-6.1%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingBusiness Quality

WeakFinancial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑