Neueon Corporation Limited

Basic Materials — Steel · NSE

₹13.35+₹0.05 (+0.38%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Neueon Corporation Limited engages in power transmission and telecom infrastructure business in India. The company also manufactures and trades related products and strategic business activities; turnkey projects, and renewable energy services.

IndustrySteel

SectorBasic Materials

Annual revenue₹16 Cr

How does it make money?

Turns over ₹16 Cr a year. Of every ₹100 of sales, about ₹-2042 reaches shareholders as profit, with ₹-14 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, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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?Little sign of one

Returns on capital of -148.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.8%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

29/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 98% over 3 years.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -57223.8x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹326 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -760.2x to -57223.8x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 900% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 98% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 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.
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

1EBITDA margin holds above -16%✓ -14.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹38 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -57223.8x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -148.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹755 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

3.43x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-52.4

Loss-making

Negative earnings per share — the business is losing money

ROE

-148.1%

Weak

Weak capital efficiency

ROCE

-148.1%

Weak

Low return on total capital employed

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

-94.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-259.5%

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

-₹38 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-398.9%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.03

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

13.4 / 13.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹0 Cr	₹5 Cr	₹16 Cr	—
EBITDA	₹1 Cr	₹0 Cr	-₹2 Cr	-₹2 Cr	—
EBITDA Margin	—	370.0%	-35.2%	-14.5%	—
PAT (Net Profit)	-₹93 Cr	-₹94 Cr	-₹91 Cr	-₹326 Cr	—
EPS	₹-16.49	₹-16.57	₹-16.05	₹-5.77	—
ROE	—	—	-9.6%	-148.1%	—
ROCE	—	—	-8.2%	-148.1%	—
Total Debt	₹2,347 Cr	₹2,347 Cr	₹53 Cr	₹42 Cr	-73.8%
Free Cash Flow	-₹5 Cr	-₹21 Cr	-₹1,227 Cr	-₹38 Cr	—

🔴 EBITDA has turned negative, from ₹1 Cr to -₹2 Cr.

🔴 EBITDA Margin has fallen from 370.0% to -14.5% over 3 years (-384.4 pts).

🔴 ROE has fallen from -9.6% to -148.1% over 3 years (-138.5 pts).

🔴 ROCE has fallen from -8.2% to -148.1% over 3 years (-139.9 pts).

🟢 Total Debt has shrunk at 73.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹266 Cr

Total Liabilities

₹46 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹38 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

91.8%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 positive2 mixed3 general

Neueon Corporation Share Price Forecast: 3 Year Outlook to 2030

Univest, 22 Jul

Neueon Corporation FY26 Results: ₹32,618 Cr Consolidated Loss, Qualified Audit

scanx.trade, 02 MayResults

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

Neueon Corporation Stock (NSE: NEUEON) Hits 52-Week High Despite Losses

Kalkine India, 30 Mar

Neueon (NSE:NEUEON) Is Carrying A Fair Bit Of Debt

Simply Wall Street, 01 Jan

Neueon Corporation Share Price Target 2026: Bull Case Rs 25.00, B

Univest, 01 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Neueon Corporation wins Rs 25 crore work order from Share Medical Care Foundation

scanx.trade, 30 SeptOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Watch Items

Revenue growth is negative (-94.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth

WeakBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑