Poojawestern Metaliks Limited

Industrials — Metal Fabrication · BSE

₹15.25+₹0.12 (+0.79%)

DalalBaazaar Score

57 / 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: Strong business and financial position, 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Poojawestern Metaliks Limited manufactures and sells brass products in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees19

Annual revenue₹75 Cr

How does it make money?

Turns over ₹75 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹3.92 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.92 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA 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 20.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 10.5% against a peer median of 18.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE18.7%

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 +139% while net margin moved -37% 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+139%

Margin effect-37%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.51x is high — earnings must service borrowings before shareholders see anything
• Current ratio of 1.33 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
• Interest cover of 2.7x is adequate
✗ Debt has grown 17.4% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

82/ 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

11.2x

3Y Median

20.3x

40 monthly readings · mean 23.3x · range 9.7x–55.0x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 45% below its 3y median of 20.3x. 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 is priced broadly in line with the peer median of 12.2x.

vs. its own history

Cheap

20.3x median over 40 months · -45%

vs. sector peers

Fair

12.2x median of 4 peers · -8%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.5x

PEG

0.77

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from 16.3% to 20.1%.
High return on capital employed
ROCE of 20.1% is the mark of a business that converts capital into profit efficiently.
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

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 62% over 3 years, from ₹14 Cr to ₹23 Cr.
🔴High leverageFinancial
Debt/Equity of 1.51x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 4.8 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.1% 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 45% 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?

Margins are being competed away
EBITDA margin has fallen from 11.6% to 6.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
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 25% a year✓ 33.7% CAGR
Latest reported year was 51.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.7x
How much operating profit can fall before interest stops being comfortably covered.

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

5 good · 3 neutral · 3 weak

Market Cap

₹15 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.2x

Cheap

Cheap against the generic band

P/B Ratio

1.03x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.36

Profitable

Profitable on a per-share basis

ROE

10.5%

Moderate

Moderate capital efficiency

ROCE

20.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.51x

High

High leverage

Revenue Growth (YoY)

51.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-12.8%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.4%

Average

Average margins

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.36

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

15.7 / 16.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹31 Cr	₹61 Cr	₹50 Cr	₹75 Cr	+33.7%
EBITDA	₹4 Cr	₹5 Cr	₹5 Cr	₹5 Cr	+12.1%
EBITDA Margin	11.6%	7.9%	9.4%	6.9%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+14.5%
EPS	₹1.05	₹1.72	₹1.53	₹1.57	+14.4%
ROE	8.7%	13.4%	11.5%	10.5%	—
ROCE	16.3%	24.7%	24.1%	20.1%	—
Total Debt	₹14 Cr	₹19 Cr	₹21 Cr	₹23 Cr	+17.4%
Free Cash Flow	-₹0 Cr	-₹3 Cr	₹0 Cr	-₹0 Cr	—

🟢 Revenue has grown at 33.7% a year over 3 years.

🟢 EBITDA has grown at 12.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.6% to 6.9% over 3 years (-4.8 pts).

🟢 PAT (Net Profit) has grown at 14.5% a year over 3 years.

🟢 EPS has grown at 14.4% a year over 3 years.

🟢 ROE has risen from 8.7% to 10.5% over 3 years (+1.9 pts).

🟢 ROCE has risen from 16.3% to 20.1% over 3 years (+3.8 pts).

🔴 Total Debt has grown at 17.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹43 Cr

Total Liabilities

₹27 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.8%

Corporate Actions

Ex-Dividend Date

13 Sept 2024

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

6 general

Poojawestern Metaliks Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Poojawestern Metaliks shareholders approve rights issue, loan conversion

scanx.trade, 18 Aug

Poojawestern Metaliks Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

Narmada Agrobase Ltd leads losers in 'B' group

Business Standard, 11 Jun

Poojawestern Metaliks passes all AGM resolutions including auditor appointment

scanx.trade, 12 Sept

Poojawestern Metaliks Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

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

StrongValuation

MiddlingBusiness Quality · Growth

WeakFinancial Health · Profitability · Risk

Points for each in the Score ↑

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

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑