PIX Transmissions Limited

Industrials — Specialty Industrial Machinery · NSE

₹1,819.00+₹9.60 (+0.53%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

PIX Transmissions Limited, together with its subsidiaries, manufactures and sells belts and related mechanical power transmission products in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees913

Annual revenue₹573 Cr

How does it make money?

Turns over ₹573 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 913 employees supports ₹62.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin31.2%

Net margin18.6%

Revenue / employee₹62.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Some evidence

ROCE of 19.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.6%

ROE15.3%

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +19% while net margin moved +38% 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+19%

Margin effect+38%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.14 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

75/ 100

Good

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

Valuation

74/ 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

18.9x

3Y Median

24.7x

40 monthly readings · mean 24.7x · range 15.8x–41.8x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 23% below its 3y median of 24.7x. 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 71% below the peer median of 66.2x.

vs. its own history

Cheap

24.7x median over 40 months · -23%

vs. sector peers

Cheap

66.2x median of 4 peers · -71%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.9x

P/B

3.56x

EV/EBITDA

13.4x

PEG

1.04

Dividend Yield

0.49%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 23.4% to 31.2% over 3 years.
Debt is being paid down
Total debt is down 66% over 3 years.
Cash generation is improving
Free cash flow is up 67% over 3 years.
Valuation below its historical average
At 18.9x the stock trades 23% below its own median of 24.7x.
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

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 3.48x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.6% 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 23.4% to 31.2%. 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 66% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 23% 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 71% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.48x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 6.0% 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.
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 29%✓ 31.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 6.0% CAGR
Latest reported year was 22.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹146 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹2,478 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.56x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹96.29

Profitable

Profitable on a per-share basis

ROE

15.3%

Strong

Strong capital efficiency

ROCE

19.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.48x

High

High leverage

Revenue Growth (YoY)

22.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

89.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.49%

Modest

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

Free Cash Flow

₹146 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,819

Operating Margin

26.7%

Good

Healthy core-business profitability

Net Margin

21.6%

Good

Strong bottom-line conversion

Current Ratio

6.86

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.14

Defensive

Steadier than the market

52W Range Position

68%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1775.9 / 1797.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

59.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹481 Cr	₹490 Cr	₹582 Cr	₹573 Cr	+6.0%
EBITDA	₹113 Cr	₹131 Cr	₹176 Cr	₹179 Cr	+16.6%
EBITDA Margin	23.4%	26.8%	30.3%	31.2%	—
PAT (Net Profit)	₹65 Cr	₹83 Cr	₹113 Cr	₹107 Cr	+18.1%
EPS	₹47.57	₹60.91	₹82.84	₹78.45	+18.1%
ROE	15.5%	16.8%	18.9%	15.3%	—
ROCE	18.9%	20.4%	23.5%	19.6%	—
Total Debt	₹72 Cr	₹44 Cr	₹35 Cr	₹24 Cr	-30.5%
Free Cash Flow	₹87 Cr	₹110 Cr	₹87 Cr	₹146 Cr	+18.6%

🟢 Revenue has grown at 6.0% a year over 3 years.

🟢 EBITDA has grown at 16.6% a year over 3 years.

🟢 EBITDA Margin has risen from 23.4% to 31.2% over 3 years (+7.8 pts).

🟢 PAT (Net Profit) has grown at 18.1% a year over 3 years.

🟢 EPS has grown at 18.1% a year over 3 years.

🟡 ROE has held roughly flat at 15.3% over 3 years.

🟡 ROCE has held roughly flat at 19.6% over 3 years.

🟢 Total Debt has shrunk at 30.5% a year over 3 years.

🟢 Free Cash Flow has grown at 18.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹830 Cr

Total Liabilities

₹133 Cr

Total Debt

₹24 Cr

Cash & Equivalents

₹101 Cr

Operating Cash Flow

₹171 Cr

Capex

-₹25 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

68.0%

Corporate Actions

Dividend Rate

₹9

Ex-Dividend Date

14 Jul 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive2 mixed3 general

PIX Transmissions Limited (PIXTRANS.BO) Stock Price, News, Quote & History

Yahoo! Finance Canada, 09 Oct

Pix Transmissions (PIXTRANS) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Pix Transmissions shares surge over 12% after Q1 profit spikes 98% YoY

The Economic Times, 10 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.

Pix Transmissions Reports Q1 Cons Net Profit Of 527M Rupees Vs 276M YoY

Sahi, 07 AugResults

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

Be Sure To Check Out PIX Transmissions Limited (NSE:PIXTRANS) Before It Goes Ex-Dividend

Simply Wall Street, 10 JulCapital return

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

Volume Gainers, October 1, 2026 at 12:00 PM IST: Pix Transmissions Leads Volume Jump

HDFC Sky, 01 Oct

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong15.8/20

🟢Financial HealthStrong14.5/20

🟢GrowthStrong13.1/20

🟢ProfitabilityStrong12.8/15

🟢ValuationAttractive10.7/15

🟡RiskModerate5.3/10

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.

This thesis breaks if

✓EBITDA margin holds above 29%31.2%
✓Revenue growth stays above 4% a year6.0% CAGR
✓Free cash flow remains positive₹146 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 17%19.6%