Neetu Yoshi Limited

Industrials — Railroads · BSE

₹238.35−₹6.05 (−2.48%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, 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. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Neetu Yoshi Limited, a metallurgical engineering company engages in the manufacturing of customized products in various grades of ferrous metallurgical products in India.

IndustryRailroads

SectorIndustrials

Employees84

Annual revenue₹98 Cr

How does it make money?

Turns over ₹98 Cr a year. Of every ₹100 of sales, about ₹25 reaches shareholders as profit, with ₹34 left at the operating level before interest, tax and depreciation. Each of its 84 employees supports ₹1.17 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin34.3%

Net margin25.4%

Revenue / employee₹1.17 Cr

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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 22.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE22.9%

ROE27.5%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +506% while net margin moved +876% 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+506%

Margin effect+876%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

78/ 100

Good

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

Valuation

62/ 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

34.5x

1.4Y Median

29.0x

17 monthly readings · mean 33.7x · range 17.0x–58.9x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 19% above its 1.4y median of 29.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 61% below the peer median of 88.8x.

vs. its own history

Fair

29.0x median over 17 months · +19%

vs. sector peers

Cheap

88.8x median of 3 peers · -61%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

34.5x

P/B

6.74x

EV/EBITDA

27.4x

PEG

0.12

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 7.0% to 34.3% over 3 years.
Debt is being paid down
Total debt is down 53% over 3 years.
Return on equity is rising
ROE has improved from 7.6% to 18.2%.
Return on capital is rising
ROCE has improved from 7.6% to 22.9%.
High return on capital employed
ROCE of 22.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 886% against revenue growth of 506% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 901% against revenue growth of 506% — stock may not be moving.

Red Flags

5 items require attention · 5 high

🔴High leverageFinancial
Debt/Equity of 2.82x — earnings must service borrowings before shareholders see anything.
🔴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 886% against revenue up 506% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 901% against revenue up 506% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.9% 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 7.0% to 34.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 53% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 61% 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?

Leverage amplifies any setback
Debt/Equity of 2.82x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 886% against revenue up 506%. 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.
Several serious flags at once
5 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 62% a year✓ 82.3% CAGR
Latest reported year was 40.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 32%✓ 34.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹49 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 22.9%
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

5 good · 3 neutral · 3 weak

Market Cap

₹925 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.5x

Fair

Fairly valued against the generic band

P/B Ratio

6.74x

Rich

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

EPS (TTM)

₹6.91

Profitable

Profitable on a per-share basis

ROE

27.5%

Strong

Strong capital efficiency

ROCE

22.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.82x

High

High leverage

Revenue Growth (YoY)

40.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

12.6%

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

-₹55 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹238.35

ROA

16.8%

Good

Assets are working hard

Operating Margin

28.1%

Good

Healthy core-business profitability

Net Margin

25.4%

Good

Strong bottom-line conversion

Current Ratio

5.96

Comfortable

Healthy short-term liquidity

52W Range Position

89%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

233.2 / 197.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16 Cr	₹47 Cr	₹71 Cr	₹98 Cr	+82.3%
EBITDA	₹1 Cr	₹17 Cr	₹23 Cr	₹34 Cr	+209.7%
EBITDA Margin	7.0%	35.9%	33.1%	34.3%	—
PAT (Net Profit)	₹0 Cr	₹13 Cr	₹16 Cr	₹25 Cr	+289.6%
EPS	₹0.11	₹3.24	₹4.23	—	—
ROE	7.6%	63.7%	36.8%	18.2%	—
ROCE	7.6%	57.1%	42.4%	22.9%	—
Total Debt	₹8 Cr	₹17 Cr	₹14 Cr	₹4 Cr	-22.3%
Free Cash Flow	-₹9 Cr	-₹7 Cr	-₹4 Cr	-₹49 Cr	—

🟢 Revenue has grown at 82.3% a year over 3 years.

🟢 EBITDA has grown at 209.7% a year over 3 years.

🟢 EBITDA Margin has risen from 7.0% to 34.3% over 3 years (+27.3 pts).

🟢 PAT (Net Profit) has grown at 289.6% a year over 3 years.

🟢 ROE has risen from 7.6% to 18.2% over 3 years (+10.6 pts).

🟢 ROCE has risen from 7.6% to 22.9% over 3 years (+15.3 pts).

🟢 Total Debt has shrunk at 22.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹148 Cr

Total Liabilities

₹10 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹53 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.4%

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

1 positive5 general

Neetu Yoshi Lower Circuit Today: Price, Data and Peers

Univest, 05 Oct

Neetu Yoshi FY26 net profit rises 52% to ₹25.01 Cr

scanx.trade, 25 MayResults

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

Neetu Yoshi Limited Share Price

Upstox, 05 May

Neetu Yoshi to host investor meet at Arihant conference on Sep 25

scanx.trade, 25 Sept

Neetu Yoshi shareholders approve convertible warrants

scanx.trade, 24 May

Neetu Yoshi shares list at 40% premium over IPO price on BSE SME

Moneycontrol.com, 04 Jul

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong17.9/20

🟡Financial HealthAdequate11.9/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong13.5/15

🔴ValuationDemanding6.5/15

🔴RiskHigh2.5/10

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

This thesis breaks if

✓Revenue growth stays above 62% a year82.3% CAGR
✓EBITDA margin holds above 32%34.3%
✗Free cash flow remains positive-₹49 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 20%22.9%