NDR Auto Components Limited

Consumer Cyclical — Auto Parts · NSE

₹689.00+₹7.30 (+1.07%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

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, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

NDR Auto Components Limited manufactures, fabricates, assembles, sells, and trades in automotive components for passenger cars and utility vehicles in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees208

Annual revenue₹816 Cr

How does it make money?

Turns over ₹816 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 208 employees supports ₹3.92 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.8%

Net margin7.6%

Revenue / employee₹3.92 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Some evidence

ROCE of 20.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE20.0%

ROE17.3%

Peer median ROE23.0%

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 +111% while net margin moved +5% 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+111%

Margin effect+5%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.86 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

73/ 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

25.2x

3Y Median

37.2x

40 monthly readings · mean 38.5x · range 23.9x–70.9x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 32% below its 3y median of 37.2x. 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 45% below the peer median of 45.7x.

vs. its own history

Cheap

37.2x median over 40 months · -32%

vs. sector peers

Cheap

45.7x median of 4 peers · -45%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

25.2x

P/B

4.58x

EV/EBITDA

16.1x

PEG

0.84

Dividend Yield

0.58%

What's Good / What's Bad

🟢 What's Going Well5

Return on equity is rising
ROE has improved from 12.9% to 17.3%.
Return on capital is rising
ROCE has improved from 14.8% to 20.0%.
Valuation below its historical average
At 25.2x the stock trades 32% below its own median of 37.2x.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 83% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 224% against revenue growth of 111% — customers are taking longer to pay.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 83% over 3 years, from ₹34 Cr to ₹62 Cr.
🔴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 224% against revenue up 111% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹36 Cr in the latest year.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.1%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.0% 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.
Priced below its own history
The stock trades 32% 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 45% 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?

Sales are being booked faster than collected
Receivables are up 224% against revenue up 111%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 21% a year✓ 28.2% CAGR
Latest reported year was 19.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹36 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 17%✓ 20.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 4 neutral · 1 weak

Market Cap

₹1,644 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.2x

Fair

Fairly valued against the generic band

P/B Ratio

4.58x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹27.29

Profitable

Profitable on a per-share basis

ROE

17.3%

Strong

Strong capital efficiency

ROCE

20.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

19.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

20.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.58%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹36 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹689

Operating Margin

8.6%

Average

Average margins

Net Margin

7.5%

Average

Average bottom-line conversion

Current Ratio

1.22

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.86

Market-like

Moves roughly in line with the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

714.4 / 736.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹388 Cr	₹598 Cr	₹708 Cr	₹816 Cr	+28.2%
EBITDA	₹47 Cr	₹67 Cr	₹87 Cr	₹105 Cr	+31.0%
EBITDA Margin	12.0%	11.2%	12.3%	12.8%	—
PAT (Net Profit)	₹28 Cr	₹39 Cr	₹53 Cr	₹62 Cr	+30.1%
EPS	₹11.82	₹16.28	₹22.39	₹26.04	+30.1%
ROE	12.9%	15.3%	17.6%	17.3%	—
ROCE	14.8%	18.6%	21.4%	20.0%	—
Total Debt	₹34 Cr	₹31 Cr	₹32 Cr	₹62 Cr	+22.3%
Free Cash Flow	₹2 Cr	-₹7 Cr	₹36 Cr	-₹36 Cr	—

🟢 Revenue has grown at 28.2% a year over 3 years.

🟢 EBITDA has grown at 31.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.8% over 3 years.

🟢 PAT (Net Profit) has grown at 30.1% a year over 3 years.

🟢 EPS has grown at 30.1% a year over 3 years.

🟢 ROE has risen from 12.9% to 17.3% over 3 years (+4.4 pts).

🟢 ROCE has risen from 14.8% to 20.0% over 3 years (+5.2 pts).

🔴 Total Debt has grown at 22.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹36 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹563 Cr

Total Liabilities

₹205 Cr

Total Debt

₹62 Cr

Cash & Equivalents

₹15 Cr

Operating Cash Flow

₹37 Cr

Capex

-₹73 Cr

Shareholding (proxy)

Institutional Holding

73.2%

Insider Holding

0.1%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

20 Jul 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive1 mixed4 general

NDR Auto Components Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Declining Stock and Solid Fundamentals: Is The Market Wrong About NDR Auto Components Limited (NSE:NDRAUTO)?

Simply Wall Street, 04 Feb

NDR Auto Components profit rises 20.6% in Q1FY27 on strong demand

scanx.trade, 04 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

NDR Auto Components Reports Q1 Revenue Of 2.21B Rupees, Consolidated Profit At 164M Rupees

Sahi, 12 AugResults

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

Ndr Auto Components (NDRAUTO.NS) Slips 1.79% to ₹722.4 — Support at ₹686.28 in Focus - Chart Pattern Alerts

siam.in, 01 Sept

Market trading guide: NDR Auto among 2 stock recommendations for Tuesday

The Economic Times, 15 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟡Financial HealthAdequate12/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong10.9/15

🟡ValuationFair9.5/15

🔴RiskHigh3.7/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 21% a year28.2% CAGR
✓EBITDA margin holds above 11%12.8%
✗Free cash flow remains positive-₹36 Cr
✓Debt / EBITDA stays below 2x0.6x
✓ROCE stays above 17%20.0%