MPF Systems Limited

Industrials — Conglomerates · BSE

₹10.77₹0.00 (0.00%)

DalalBaazaar Score

83 / 100

🟢 Strong

Verdict

ATTRACTIVE

Risk

Moderate

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

In simple words: Strong business and financial position. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:50 pm

Understanding the Business

Company site ↗

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

What does this company do?

MPF Systems Limited engages in the commercial services in India.

IndustryConglomerates

SectorIndustrials

Employees5

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹86 reaches shareholders as profit, with ₹94 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹89.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹89.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB 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 68.1% 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 ROE15.2%

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 +37024% while net margin moved -112% 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+37024%

Margin effect-112%

DalalBaazaar Score

83/ 100

Strong

Weighted across six categories. Every point is explained below.

✓ Beta of 0.26 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

87/ 100

Excellent

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

Valuation

87/ 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

0.7x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 99% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -99%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

1.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -266.7% to 94.0% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 68.1% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 121% over 3 years, from ₹1 Cr to ₹3 Cr.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1498% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 68.1% 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 -266.7% to 94.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 99% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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 464% a year✓ 618.7% CAGR
Set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 92%✓ 94.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹2 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 65%✓ 68.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 10 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)
✓ 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

7 good · 4 neutral · 0 weak

Market Cap

₹3 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

0.7x

Cheap

Cheap against the generic band

P/B Ratio

0.87x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹14.38

Profitable

Profitable on a per-share basis

ROE

272.7%

Strong

Strong capital efficiency

ROCE

68.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.83x

Moderate

Moderate leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

325.4%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

60.7%

Good

Assets are working hard

Operating Margin

94.8%

Good

Healthy core-business profitability

Net Margin

87.8%

Good

Strong bottom-line conversion

Current Ratio

11.75

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

9.5 / 6.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	—	₹4 Cr	+618.7%
EBITDA	-₹0 Cr	₹0 Cr	-₹1 Cr	₹4 Cr	—
EBITDA Margin	-266.7%	116.6%	—	94.0%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	-₹2 Cr	₹4 Cr	—
EPS	₹-5.2	₹-2.29	₹-6.25	₹14.08	—
ROCE	—	—	-50.7%	68.1%	—
Total Debt	₹1 Cr	₹1 Cr	₹3 Cr	₹3 Cr	+30.2%
Free Cash Flow	-₹0 Cr	₹0 Cr	-₹3 Cr	₹2 Cr	—

🟢 Revenue has grown at 618.7% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹4 Cr.

🟢 EBITDA Margin has risen from -266.7% to 94.0% over 3 years (+360.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹4 Cr.

🟢 EPS has turned positive, from ₹-5.2 to ₹14.08.

🟢 ROCE has risen from -50.7% to 68.1% over 3 years (+118.8 pts).

🔴 Total Debt has grown at 30.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

95.8%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 mixed4 general

MPF Systems Share Price Analysis After 19.94% One-Day Rise

Univest, 14 Aug

MPF Systems Q2FY27 Results: Zero revenue, net loss of ₹2.64 lakh

scanx.trade, 15 OctResults

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

MPF Systems Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 28 Aug

3 Indian Penny Stocks With Real Earnings That Investors May Be Missing

Simply Wall Street, 28 JulResults

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

MPF Systems Limited Share Price

Upstox, 05 May

3 Indian Penny Stocks With Profits That Look Better Than Their Share Prices

Simply Wall Street, 17 Aug

Watch Items

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

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. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑