Olectra Greentech Limited

Industrials — Farm & Heavy Construction Machinery · NSE

₹1,064.90+₹7.90 (+0.75%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Olectra Greentech Limited manufactures and sells electric buses and trucks in India. It operates in two segments, Energy Division and Mobility Division. The company offers electric tippers.

IndustryFarm & Heavy Construction Machinery

SectorIndustrials

Employees331

Annual revenue₹2,308 Cr

How does it make money?

Turns over ₹2,308 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 331 employees supports ₹6.97 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.97 Cr

Who are its competitors?

The closest listed comparisons in its industry are MAHINDRA & MAHINDRA LTD, ASHOK LEYLAND LTD, TATA MOTORS LIMITED, LARSEN & TOUBRO LTD.. 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 19.4% 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 ROE24.4%

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 +112% while net margin moved +28% 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+112%

Margin effect+28%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 49.3x is demanding — it needs sustained high growth to justify
✓ P/E is 62% below its own historical median of 131.4x — cheap by its own standards
✗ P/B of 7.12x is a steep premium to book

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

46/ 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

49.3x

3Y Median

131.4x

40 monthly readings · mean 130.8x · range 49.3x–246.2x

Sector Median

27.6x

median of 4 sector peers

🟢Current valuation is approximately 62% below its 3y median of 131.4x. 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 78% above the peer median of 27.6x.

vs. its own history

Cheap

131.4x median over 40 months · -62%

vs. sector peers

Expensive

27.6x median of 4 peers · +78%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.7x

PEG

1.25

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 7.8% to 14.5%.
Return on capital is rising
ROCE has improved from 12.1% to 19.4%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 184% over 3 years, from ₹134 Cr to ₹380 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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹55 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.4% 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 62% 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.
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?

A premium to the sector to defend
It trades 78% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small 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
2 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✓ 28.4% CAGR
Latest reported year was 65.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹55 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

4 good · 3 neutral · 4 weak

Market Cap

₹8,741 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

49.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

7.12x

Rich

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

EPS (TTM)

₹21.61

Profitable

Profitable on a per-share basis

ROE

14.5%

Moderate

Moderate capital efficiency

ROCE

19.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

65.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-0.3%

Falling

Profits are shrinking

Dividend Yield

0.06%

Modest

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

Free Cash Flow

-₹55 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

24.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.3%

Average

Average margins

Net Margin

7.0%

Average

Average bottom-line conversion

Current Ratio

1.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1127.2 / 1222.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

23.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,090 Cr	₹1,154 Cr	₹1,798 Cr	₹2,308 Cr	+28.4%
EBITDA	₹153 Cr	₹186 Cr	₹261 Cr	₹329 Cr	+29.1%
EBITDA Margin	14.0%	16.1%	14.5%	14.3%	—
PAT (Net Profit)	₹66 Cr	₹77 Cr	₹139 Cr	₹177 Cr	+39.3%
EPS	₹7.99	₹9.36	₹16.92	₹21.62	+39.3%
ROE	7.8%	8.4%	13.2%	14.5%	—
ROCE	12.1%	15.3%	17.7%	19.4%	—
Total Debt	₹134 Cr	₹121 Cr	₹255 Cr	₹380 Cr	+41.7%
Free Cash Flow	-₹75 Cr	₹64 Cr	-₹36 Cr	-₹55 Cr	—

🟢 Revenue has grown at 28.4% a year over 3 years.

🟢 EBITDA has grown at 29.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 14.3% over 3 years.

🟢 PAT (Net Profit) has grown at 39.3% a year over 3 years.

🟢 EPS has grown at 39.3% a year over 3 years.

🟢 ROE has risen from 7.8% to 14.5% over 3 years (+6.6 pts).

🟢 ROCE has risen from 12.1% to 19.4% over 3 years (+7.2 pts).

🔴 Total Debt has grown at 41.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,567 Cr

Total Liabilities

₹1,334 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹104 Cr

Capex

-₹159 Cr

Shareholding (proxy)

Institutional Holding

5.2%

Insider Holding

50.3%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
MAHINDRA & MAHINDRA LTD	17.8x	19.7%
ASHOK LEYLAND LTD	25.2x	24.4%
TATA MOTORS LIMITED	37.1x	32.8%
LARSEN & TOUBRO LTD.	30.1x	15.2%

Recent News

1 positive1 mixed4 general

Olectra Greentech appoints Surender Nath as COO for Energy Division

scanx.trade, 16 Oct

Solid Q4 results, dividend announcement lift Olectra Greentech shares by 9%

Business Standard, 01 JunCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Olectra Greentech - 5 stocks bought by FIIs, MFs and retail investors rally up to 60% in 6 months

The Economic Times, 24 Jun

Why Olectra Greentech Share Price is Rising

Equitymaster, 01 Jun

Olectra Greentech Shares Decline Nearly 4% After Q1 Results

NDTV Profit, 14 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Declining Stock and Decent Financials: Is The Market Wrong About Olectra Greentech Limited (NSE:OLECTRA)?

Simply Wall Street, 29 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth

MiddlingProfitability · Risk

WeakValuation

Points for each in the Score ↑

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑