Mauria Udyog Limited

Industrials — Metal Fabrication · BSE

₹7.14+₹0.18 (+2.59%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mauria Udyog Limited manufactures and sells liquefied petroleum gas (LPG) cylinders and related accessories in India.

IndustryMetal Fabrication

SectorIndustrials

Annual revenue₹399 Cr

How does it make money?

Turns over ₹399 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

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 76.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 42.7% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +86% while net margin moved -240% 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+86%

Margin effect-240%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.12 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

85/ 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

4.3x

2Y Median

9.2x

28 monthly readings · mean 8.8x · range 3.8x–14.8x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 54% below its 2y median of 9.2x. 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 65% below the peer median of 12.2x.

vs. its own history

Cheap

9.2x median over 28 months · -54%

vs. sector peers

Cheap

12.2x median of 4 peers · -65%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 27% over 3 years.
Return on equity is rising
ROE has improved from -52.7% to 42.7%.
Return on capital is rising
ROCE has improved from 17.0% to 76.6%.
High return on capital employed
ROCE of 76.6% 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

5 items require attention · 4 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.46x — 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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.6 points, from 19.0% to 13.4%.
🔴Receivables growing faster than salesFinancial
Receivables up 218% against revenue up 86% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.65 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 76.6% 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.
Deleveraging frees up earnings
Debt is down 27% 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 54% 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 65% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 19.0% to 13.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 2.46x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 218% against revenue up 86%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 17% a year✓ 23.0% CAGR
Latest reported year was -18.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 13.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹32 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹95 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.3x

Cheap

Cheap against the generic band

P/B Ratio

1.72x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.67

Profitable

Profitable on a per-share basis

ROE

42.7%

Strong

Strong capital efficiency

ROCE

76.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.46x

High

High leverage

Revenue Growth (YoY)

-18.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-26.0%

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

₹32 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.8%

Average

Average margins

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

0.65

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

7.3 / 7.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹214 Cr	₹313 Cr	₹381 Cr	₹399 Cr	+23.0%
EBITDA	₹41 Cr	₹33 Cr	₹40 Cr	₹54 Cr	+9.6%
EBITDA Margin	19.0%	10.5%	10.6%	13.4%	—
PAT (Net Profit)	-₹9 Cr	₹17 Cr	₹18 Cr	₹24 Cr	—
EPS	₹-0.69	₹1.26	₹1.37	₹1.8	—
ROE	-52.7%	54.4%	56.5%	42.7%	—
ROCE	17.0%	23.8%	36.2%	76.6%	—
Total Debt	₹190 Cr	₹191 Cr	₹150 Cr	₹138 Cr	-10.0%
Free Cash Flow	₹145 Cr	-₹26 Cr	₹66 Cr	₹32 Cr	-39.5%

🟢 Revenue has grown at 23.0% a year over 3 years.

🟢 EBITDA has grown at 9.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 19.0% to 13.4% over 3 years (-5.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹9 Cr to ₹24 Cr.

🟢 EPS has turned positive, from ₹-0.69 to ₹1.8.

🟢 ROE has risen from -52.7% to 42.7% over 3 years (+95.4 pts).

🟢 ROCE has risen from 17.0% to 76.6% over 3 years (+59.6 pts).

🟢 Total Debt has shrunk at 10.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 39.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹424 Cr

Total Liabilities

₹367 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹38 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.3%

Corporate Actions

Ex-Dividend Date

09 Oct 2018

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

1 negative5 general

Mauria Udyog gets SAT stay on penalty recovery, debarment continues

scanx.trade, 16 Oct

Mauria Udyog Ltd. Share Price: 52-Week Low, Valuation Check

Univest, 17 Aug

What Retail Investors Can Learn From Sebi's Latest Order In A Pump-And-Dump Case In Mauria Udyog And Four Other Stocks

Outlook Money, 02 Jul

Mauria Udyog restrained from market access for 5 years by SEBI

scanx.trade, 17 Jul

The fake Zerodha SMS scam | Why India's smallest businesses still struggle for credit

The Daily Brief by Zerodha, 02 Jul

Mauria Udyog Q1FY27 net profit falls 27% to ₹486.88 lacs on revenue slide

scanx.trade, 07 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-18.3%) 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. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑