Midwest Limited

Basic Materials — Building Materials · NSE

₹1,033.00+₹37.80 (+3.80%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Midwest Limited engages in the exploration, exploitation, manufacturing, processing, and selling of dressed granite blocks and slabs in India and internationally.

IndustryBuilding Materials

SectorBasic Materials

Employees352

Annual revenue₹643 Cr

How does it make money?

Turns over ₹643 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 352 employees supports ₹1.83 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.83 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT 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 13.7% 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 ROE7.4%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 24.5% and earnings to grow about 58.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+24.5%

Est. earnings growth+58.3%

Analysts1

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

56/ 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

31.6x

Sector Median

36.2x

median of 4 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 36.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

36.2x median of 4 peers · -13%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.4x

PEG

1.26

What's Good / What's Bad

🟢 What's Going Well1

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

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹45 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?

Growth barely outpaces inflation
Revenue compounding at 3.1% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 27%✓ 29.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 3.1% CAGR
Latest reported year was 34.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹45 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 13.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹3,735 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.73x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹32.7

Profitable

Profitable on a per-share basis

ROE

10.9%

Moderate

Moderate capital efficiency

ROCE

13.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

34.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

25.0%

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

₹45 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

15.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

20.8%

Good

Healthy core-business profitability

Net Margin

16.0%

Good

Strong bottom-line conversion

Current Ratio

2.74

Comfortable

Healthy short-term liquidity

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

972.5 / 1049.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

62.0

Neutral momentum

Financial Trend (2-Year)

Metric	FY25	FY26	1Y CAGR
Revenue	₹624 Cr	₹643 Cr	+3.1%
EBITDA	₹187 Cr	₹189 Cr	+1.1%
EBITDA Margin	30.0%	29.4%	—

🟢 Revenue has grown at 3.1% a year over 1 years.

🟡 EBITDA has been broadly flat over 1 years (1.1% a year).

🟡 EBITDA Margin has held roughly flat at 29.4% over 1 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,367 Cr

Total Liabilities

₹388 Cr

Total Debt

₹192 Cr

Cash & Equivalents

₹63 Cr

Operating Cash Flow

₹175 Cr

Capex

-₹130 Cr

Shareholding (proxy)

Institutional Holding

10.0%

Insider Holding

84.5%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,300

+25.8% vs CMP

Target Range

₹1,300 – ₹1,300

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

1 positive3 mixed2 general

MIDWEST ENERGY LIMITED Share Price

Upstox, 27 Sept

Midwest Ltd. Share Price Rise Streak and Valuation View

Univest, 07 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.

Midwest Ltd closes trading window for designated persons from Oct 1

scanx.trade, 26 Sept

Midwest Stock Leads 3 Indian Growth Picks Backed By Strong Earnings Forecasts

Simply Wall Street, 13 AugResults

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

Dividend, stock split record date alert: Last chance to buy today - Noble Polymers, Naturite Agro, Midwest Energy, more

Livemint, 24 SeptCapital return

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

Midwest Ltd. Share Price rise: price action and valuations

Univest, 06 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.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingValuation

WeakGrowth · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑