Millworks Technologies Limited

Industrials — Metal Fabrication · BSE

₹1,090.00−₹0.05 (−0.00%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

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 Millworks Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Millworks Technologies Limited manufactures metal components and assemblies for aerospace, defense, railways, and semiconductor industries.

IndustryMetal Fabrication

SectorIndustrials

Employees161

Annual revenue₹149 Cr

How does it make money?

Turns over ₹149 Cr a year. Of every ₹100 of sales, about ₹25 reaches shareholders as profit, with ₹38 left at the operating level before interest, tax and depreciation. Each of its 161 employees supports ₹92.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹92.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 58.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 68.2% against a peer median of 18.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE18.7%

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 +8284% while net margin moved +34% 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+8284%

Margin effect+34%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 51.8x is demanding — it needs sustained high growth to justify
✗ P/B of 16.88x is a steep premium to book

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

37/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

51.8x

Sector Median

12.2x

median of 4 sector peers

⚠️Against its sector it trades 326% above the peer median of 12.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

12.2x median of 4 peers · +326%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

33.9x

PEG

0.14

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 25.3% to 38.4% over 3 years.
High return on capital employed
ROCE of 58.6% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.21x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 88.0% to 44.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 76.2% to 58.6% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 639% over 3 years, from ₹2 Cr to ₹17 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 20046% against revenue up 8284% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 58.6% 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 25.3% to 38.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Sales are being booked faster than collected
Receivables are up 20046% against revenue up 8284%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 326% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 88.0% to 44.8%. 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

1Revenue growth stays above 253% a year✓ 337.7% CAGR
Latest reported year was 574.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 36%✓ 38.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹19 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 56%✓ 58.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 2 neutral · 3 weak

Market Cap

₹1,920 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

51.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

16.88x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹21.04

Profitable

Profitable on a per-share basis

ROE

68.2%

Strong

Strong capital efficiency

ROCE

58.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

574.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

606.1%

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

-₹23 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

25.3%

Good

Assets are working hard

Operating Margin

33.0%

Good

Healthy core-business profitability

Net Margin

24.5%

Good

Strong bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

52W Range Position

68%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1165.8 / 1024.3

Bullish alignment (short > long)

RSI (14)

32.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹9 Cr	₹22 Cr	₹149 Cr	+337.7%
EBITDA	₹0 Cr	₹3 Cr	₹8 Cr	₹57 Cr	+402.7%
EBITDA Margin	25.3%	30.2%	36.1%	38.4%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	₹5 Cr	₹37 Cr	+382.0%
ROE	88.0%	83.9%	22.5%	44.8%	—
ROCE	76.2%	85.2%	25.5%	58.6%	—
Total Debt	₹2 Cr	₹5 Cr	₹10 Cr	₹17 Cr	+94.8%
Free Cash Flow	-₹2 Cr	-₹2 Cr	-₹12 Cr	-₹19 Cr	—

🟢 Revenue has grown at 337.7% a year over 3 years.

🟢 EBITDA has grown at 402.7% a year over 3 years.

🟢 EBITDA Margin has risen from 25.3% to 38.4% over 3 years (+13.1 pts).

🟢 PAT (Net Profit) has grown at 382.0% a year over 3 years.

🔴 ROE has fallen from 88.0% to 44.8% over 3 years (-43.2 pts).

🔴 ROCE has fallen from 76.2% to 58.6% over 3 years (-17.5 pts).

🔴 Total Debt has grown at 94.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹198 Cr

Total Liabilities

₹116 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹11 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.6%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

6 general

Millworks Technologies Limited Share Price

Business Today, 15 Oct

MILLWORKS TECHNOLOGIES LIMITED Share Price

Upstox, 09 Oct

Compare with

Equitymaster, 16 Oct

Millworks Technologies IPO listing: SME stock hits upper circuit after listing at a solid 90% premium over issue price

Livemint, 21 Jul

Millworks Technologies shares make stellar debut, list at 90% premium on BSE SME

The Economic Times, 21 Jul

Millworks Technologies IPO Date, Price Band, GMP, Subscription & Allotment

IndiaIPO, 08 Jul

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 4 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 ↑