Power & Instrumental (Gujarat) Limited

Industrials — Engineering & Construction · NSE

₹95.00+₹3.17 (+3.45%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Power & Instrumental (Gujarat) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Power & Instrumental (Gujarat) Limited engages in electrical contract work business and deals in electrical equipment in India.

IndustryEngineering & Construction

SectorIndustrials

Employees61

Annual revenue₹218 Cr

How does it make money?

Turns over ₹218 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 61 employees supports ₹3.58 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin11.2%

Net margin6.5%

Revenue / employee₹3.58 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. 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%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Little sign of one

Returns on capital of 12.6% 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.

ROCE12.6%

ROE9.3%

Peer median ROE14.1%

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 +134% while net margin moved +66% 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+134%

Margin effect+66%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.47 — historically steadier than the index
✗ 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

54/ 100

Average

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

Valuation

84/ 100

Cheap

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

12.0x

3Y Median

21.4x

40 monthly readings · mean 25.8x · range 11.4x–71.2x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 44% below its 3y median of 21.4x. 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 60% below the peer median of 30.1x.

vs. its own history

Cheap

21.4x median over 40 months · -44%

vs. sector peers

Cheap

30.1x median of 3 peers · -60%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.0x

P/B

1.32x

EV/EBITDA

9.5x

PEG

0.21

Dividend Yield

0.21%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 8.1% to 11.2% over 3 years.
Valuation below its historical average
At 12.0x the stock trades 44% below its own median of 21.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

3 items require attention · 1 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 8.08x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 68% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.1% to 11.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 44% 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.
Cheaper than its peers
It trades 60% 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 8.08x. Interest is payable whether or not the business has a good year.
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 25% a year✓ 32.9% CAGR
Latest reported year was 18.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.6%
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

4 good · 4 neutral · 3 weak

Market Cap

₹201 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.0x

Cheap

Cheap against the generic band

P/B Ratio

1.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.89

Profitable

Profitable on a per-share basis

ROE

9.3%

Moderate

Moderate capital efficiency

ROCE

12.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

8.08x

High

High leverage

Revenue Growth (YoY)

18.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-4.0%

Falling

Profits are shrinking

Dividend Yield

0.21%

Modest

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

Free Cash Flow

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹95

Operating Margin

9.7%

Average

Average margins

Net Margin

6.5%

Average

Average bottom-line conversion

Current Ratio

2.02

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

96.7 / 100.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹93 Cr	₹97 Cr	₹169 Cr	₹218 Cr	+32.9%
EBITDA	₹8 Cr	₹10 Cr	₹18 Cr	₹24 Cr	+47.9%
EBITDA Margin	8.1%	10.6%	10.8%	11.2%	—
PAT (Net Profit)	₹4 Cr	₹6 Cr	₹12 Cr	₹14 Cr	+57.4%
EPS	₹3.33	₹4.68	₹6.61	₹8.13	+34.7%
ROE	8.0%	11.5%	10.6%	9.3%	—
ROCE	14.4%	19.0%	16.0%	12.6%	—
Total Debt	₹32 Cr	₹15 Cr	₹18 Cr	₹33 Cr	+1.3%
Free Cash Flow	₹1 Cr	₹8 Cr	-₹40 Cr	-₹6 Cr	—

🟢 Revenue has grown at 32.9% a year over 3 years.

🟢 EBITDA has grown at 47.9% a year over 3 years.

🟢 EBITDA Margin has risen from 8.1% to 11.2% over 3 years (+3.1 pts).

🟢 PAT (Net Profit) has grown at 57.4% a year over 3 years.

🟢 EPS has grown at 34.7% a year over 3 years.

🟢 ROE has risen from 8.0% to 9.3% over 3 years (+1.3 pts).

🔴 ROCE has fallen from 14.4% to 12.6% over 3 years (-1.8 pts).

🟡 Total Debt has been broadly flat over 3 years (1.3% a year).

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹261 Cr

Total Liabilities

₹94 Cr

Total Debt

₹33 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.0%

Corporate Actions

Dividend Rate

₹0.2

Ex-Dividend Date

19 Sept 2025

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive2 mixed3 general

Power & Instrumental (Gujarat) (NSE:PIGL) Strong Profits May Be Masking Some Underlying Issues

Simply Wall Street, 08 Jun

Is Power and Instrumentation Gujarat the Best Stock in Its Sector? A Look at the Numbers

Univest, 05 Oct

Power & Instrumentation (Gujarat) Ltd

Equitypandit, 20 Feb

Power & Instrumentation (Gujarat) consolidated net profit rises 29.18% in the March 2026 quarter

Business Standard, 01 JunResults

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

Power & Instrumentation (Gujarat) Share Price Target 2026: Bull C

Univest, 30 JunAnalyst view

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

Power & Instrumentation (Gujarat) Limited Reports Strong Q3 FY26 Growth with 43.18% Revenue Increase

scanx.trade, 21 FebResults

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

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.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟡Financial HealthAdequate10.6/20

🟢GrowthStrong14.9/20

🔴ProfitabilityWeak6.2/15

🟢ValuationAttractive13.2/15

🔴RiskHigh3.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 25% a year32.9% CAGR
✓EBITDA margin holds above 9%11.2%
✗Free cash flow remains positive-₹6 Cr
✓Debt / EBITDA stays below 2x1.4x
✓ROCE stays above 10%12.6%