Paluck Technologies Limited

Consumer Cyclical — Auto Parts · BSE

₹41.03+₹0.02 (+0.05%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

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 Paluck Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Paluck Technologies Limited operates as a diversified service enterprise in India. The company operates through two segments, Automobile and Engineering Services segment and Logistics and Equipment Rental Services segment.

IndustryAuto Parts

SectorConsumer Cyclical

Employees192

Annual revenue₹111 Cr

How does it make money?

Turns over ₹111 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 192 employees supports ₹57.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹57.9 lakh

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.

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 44.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 36.2% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +10% while net margin moved +271% 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+10%

Margin effect+271%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

80/ 100

Excellent

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

Valuation

88/ 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

6.1x

Sector Median

45.7x

median of 4 sector peers

🟢Against its sector it trades 87% below the peer median of 45.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

45.7x median of 4 peers · -87%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.0x

PEG

0.10

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 13.0% to 22.1% over 3 years.
Debt is being paid down
Total debt is down 58% over 3 years.
Return on equity is rising
ROE has improved from 18.6% to 30.6%.
Return on capital is rising
ROCE has improved from 22.0% to 44.4%.
High return on capital employed
ROCE of 44.4% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.28x leaves the balance sheet with plenty of headroom.
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

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 76% against revenue up 10% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 70% against revenue up 10% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 44.4% 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.
Margin expansion has further to run
EBITDA margin has risen from 13.0% to 22.1%. 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 58% 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 87% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹4 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 76% against revenue up 10%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 20%✓ 22.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.8% CAGR
Set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 41%✓ 44.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 8 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)
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

7 good · 4 neutral · 0 weak

Market Cap

₹85 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.1x

Cheap

Cheap against the generic band

P/B Ratio

1.24x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.75

Profitable

Profitable on a per-share basis

ROE

36.2%

Strong

Strong capital efficiency

ROCE

44.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

Not available

No data

Source didn't return this field

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

20.0%

Good

Assets are working hard

Operating Margin

19.8%

Good

Healthy core-business profitability

Net Margin

12.7%

Good

Strong bottom-line conversion

Current Ratio

2.71

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Financial Trend (5-Year)

Metric	FY23	FY24	FY25	FY26	FY26	3Y CAGR	4Y CAGR
Revenue	₹92 Cr	₹101 Cr	₹103 Cr	—	₹111 Cr	+3.3%	+4.8%
EBITDA	₹15 Cr	₹13 Cr	₹18 Cr	—	₹25 Cr	+23.2%	+13.7%
EBITDA Margin	15.9%	13.0%	17.7%	—	22.1%	—	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹9 Cr	—	₹14 Cr	+60.0%	+59.4%
EPS	₹1.05	₹1.65	₹4.33	—	—	—	—
ROE	—	18.6%	28.5%	—	30.6%	—	—
ROCE	—	22.0%	32.7%	—	44.4%	—	—
Total Debt	—	₹30 Cr	₹17 Cr	₹13 Cr	₹13 Cr	-25.0%	-25.0%
Free Cash Flow	-₹1 Cr	₹11 Cr	₹14 Cr	—	₹4 Cr	-29.4%	—

🟢 Revenue has grown at 4.8% a year over 4 years.

🟢 EBITDA has grown at 13.7% a year over 4 years.

🟢 EBITDA Margin has risen from 15.9% to 22.1% over 3 years (+6.2 pts).

🟢 PAT (Net Profit) has grown at 59.4% a year over 4 years.

🟢 ROE has risen from 18.6% to 30.6% over 3 years (+12.0 pts).

🟢 ROCE has risen from 22.0% to 44.4% over 3 years (+22.4 pts).

🟢 Total Debt has shrunk at 25.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 29.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹70 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

2.3%

Insider Holding

68.3%

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

2 mixed4 general

Paluck Technologies Ltd. IPO

The Economic Times, 13 Oct

Paluck Technologies Ltd Q3 Results

Livemint, 13 OctResults

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

PALUCK TECHNOLOGIES LTD. Fact Sheet, PALUCK TECHNOLOGIES LTD. Financial Results

Equitymaster, 14 OctResults

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

Paluck Technologies (BSE:544897) - Stock Analysis

Simply Wall Street, 01 Oct

Paluck Technologies IPO Date, Price Band, GMP, Subscription & Allotment

IndiaIPO, 28 Aug

Paluck Technologies, Complete Sports, Management SME IPOs open today. Here’s what GMPs indicate

The Economic Times, 28 Aug

Watch Items

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.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

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. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑