Parmeshwar Metal Limited

Industrials — Electrical Equipment & Parts · BSE

₹296.50+₹2.95 (+1.00%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Parmeshwar Metal Limited manufactures and sells copper wire and copper wire rods in India. Its products are used in various applications, including power cables, building wires, transformers, household cables, bare and enamelled wires, and automotive industry.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees36

Annual revenue₹1,973 Cr

How does it make money?

Turns over ₹1,973 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 36 employees supports ₹54.80 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹54.80 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. 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 43.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 37.6% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +103% while net margin moved +80% 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+103%

Margin effect+80%

DalalBaazaar Score

71/ 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

78/ 100

Good

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

Valuation

75/ 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

14.0x

2Y Median

14.8x

23 monthly readings · mean 17.8x · range 7.2x–34.9x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 2y median of 14.8x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 84% below the peer median of 88.8x.

vs. its own history

Fair

14.8x median over 23 months · -6%

vs. sector peers

Cheap

88.8x median of 3 peers · -84%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.2x

PEG

0.26

What's Good / What's Bad

🟢 What's Going Well5

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 33.1% to 43.3%.
High return on capital employed
ROCE of 43.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.23x 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

🔴Inventory building faster than salesFinancial
Inventory up 269% against revenue up 103% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 41% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 43.3% 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.
Cheaper than its peers
It trades 84% 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 ₹17 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

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

1Revenue growth stays above 20% a year✓ 26.6% CAGR
Latest reported year was 50.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 0%✓ 2.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹17 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 40%✓ 43.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

8 good · 3 neutral · 0 weak

Market Cap

₹454 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.0x

Cheap

Cheap against the generic band

P/B Ratio

4.45x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹21.23

Profitable

Profitable on a per-share basis

ROE

37.6%

Strong

Strong capital efficiency

ROCE

43.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

50.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

199.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.42%

Modest

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

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

22.9%

Good

Assets are working hard

Operating Margin

2.7%

Weak

Thin margins leave little room for error

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.36

Comfortable

Healthy short-term liquidity

52W Range Position

83%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

310.8 / 277.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹972 Cr	₹1,100 Cr	₹1,382 Cr	₹1,973 Cr	+26.6%
EBITDA	₹14 Cr	₹13 Cr	₹18 Cr	₹46 Cr	+48.1%
EBITDA Margin	1.5%	1.2%	1.3%	2.4%	—
PAT (Net Profit)	₹9 Cr	₹7 Cr	₹11 Cr	₹32 Cr	+54.0%
EPS	₹5.81	₹4.66	₹9.03	—	—
ROE	29.7%	19.1%	15.5%	31.8%	—
ROCE	33.1%	28.3%	23.2%	43.3%	—
Total Debt	₹17 Cr	₹22 Cr	₹11 Cr	₹23 Cr	+12.0%
Free Cash Flow	-₹5 Cr	₹0 Cr	-₹5 Cr	₹17 Cr	—

🟢 Revenue has grown at 26.6% a year over 3 years.

🟢 EBITDA has grown at 48.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 2.4% over 3 years.

🟢 PAT (Net Profit) has grown at 54.0% a year over 3 years.

🟢 ROE has risen from 29.7% to 31.8% over 3 years (+2.2 pts).

🟢 ROCE has risen from 33.1% to 43.3% over 3 years (+10.1 pts).

🔴 Total Debt has grown at 12.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹5 Cr to ₹17 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹140 Cr

Total Liabilities

₹38 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹22 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.6%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

04 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive2 mixed3 general

Parmeshwar Metal proposes ₹1.25 dividend at 10th AGM on Sept 19

scanx.trade, 16 OctCapital return

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

PARMESHWAR Metal Share Price News: Price, Results and Sector

Univest, 22 SeptResults

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

Parmeshwar Metal Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

PARMESHWAR Metal Share Price rises 11.88%: valuation view

Univest, 24 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

PARMESHWAR METAL LIMITED Share Price

Upstox, 15 Nov

PARMESHWAR METAL LIMITED Lower Circuit Today: Price, Data and Peers

Univest, 05 Oct

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

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 ↑