Porwal Auto Components Limited

Consumer Cyclical — Auto Parts · BSE

₹56.10+₹1.57 (+2.88%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Strong business and financial position, with modest growth. 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Porwal Auto Components Limited engages in manufacturing and marketing of automobile components in India. The company provides ductile iron, grey cast iron steel and steel alloy casting components, and subassemblies. The company also engages in the generation of solar power.

IndustryAuto Parts

SectorConsumer Cyclical

Employees395

Annual revenue₹142 Cr

How does it make money?

Turns over ₹142 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 395 employees supports ₹36.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹36.0 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?Some evidence

ROCE of 16.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +1% while net margin moved -1051% 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+1%

Margin effect-1051%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.4% — barely ahead of inflation

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

83/ 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

6.4x

2Y Median

24.5x

28 monthly readings · mean 224.2x · range 8.0x–550.5x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 74% below its 2y median of 24.5x. 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 86% below the peer median of 45.7x.

vs. its own history

Cheap

24.5x median over 28 months · -74%

vs. sector peers

Cheap

45.7x median of 4 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 4.1% to 6.2% over 3 years.
Cash generation is improving
Free cash flow is up 129% over 3 years.
Return on equity is rising
ROE has improved from -1.8% to 13.6%.
Return on capital is rising
ROCE has improved from -0.3% to 16.5%.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.

🔴 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 224% against revenue up 1% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 47% against revenue up 1% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.1% to 6.2%. 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 74% 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 86% 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 ₹5 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 224% against revenue up 1%. 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 0.4% 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 4%✓ 6.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 0.4% CAGR
Latest reported year was 5.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.5%
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

₹85 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.4x

Cheap

Cheap against the generic band

P/B Ratio

1.11x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.71

Profitable

Profitable on a per-share basis

ROE

15.6%

Strong

Strong capital efficiency

ROCE

16.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

5.5%

Modest

Modest growth

Profit Growth (YoY)

56.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

19.0x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

ROA

3.2%

Average

Average asset productivity

Operating Margin

4.9%

Weak

Thin margins leave little room for error

Net Margin

7.6%

Average

Average bottom-line conversion

Current Ratio

1.94

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.39

Defensive

Steadier than the market

52W Range Position

48%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

56.2 / 54.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

31.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹141 Cr	₹146 Cr	₹140 Cr	₹142 Cr	+0.4%
EBITDA	₹6 Cr	₹10 Cr	₹6 Cr	₹9 Cr	+15.6%
EBITDA Margin	4.1%	7.0%	4.2%	6.2%	—
PAT (Net Profit)	-₹1 Cr	₹4 Cr	₹0 Cr	₹10 Cr	—
EPS	₹-0.68	₹2.55	₹0.11	₹6.57	—
ROE	-1.8%	6.1%	0.3%	13.6%	—
ROCE	-0.3%	9.9%	0.7%	16.5%	—
Total Debt	₹6 Cr	₹6 Cr	₹4 Cr	₹7 Cr	+4.6%
Free Cash Flow	₹2 Cr	₹6 Cr	-₹3 Cr	₹5 Cr	+31.9%

🟡 Revenue has been broadly flat over 3 years (0.4% a year).

🟢 EBITDA has grown at 15.6% a year over 3 years.

🟢 EBITDA Margin has risen from 4.1% to 6.2% over 3 years (+2.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹10 Cr.

🟢 EPS has turned positive, from ₹-0.68 to ₹6.57.

🟢 ROE has risen from -1.8% to 13.6% over 3 years (+15.4 pts).

🟢 ROCE has risen from -0.3% to 16.5% over 3 years (+16.9 pts).

🔴 Total Debt has grown at 4.6% a year over 3 years.

🟢 Free Cash Flow has grown at 31.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹94 Cr

Total Liabilities

₹22 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.8%

Corporate Actions

Ex-Dividend Date

19 Sept 2019

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

6 general

Porwal Auto Components concludes 34th AGM with key resolutions

scanx.trade, 28 Sept

Porwal Auto Components appoints Anish Jain as CEO and KMP

scanx.trade, 29 Sept

Porwal Auto Components promoter group acquires 2.29% via warrants

scanx.trade, 09 Jul

Porwal Auto Components Ltd. Share Price Live Today

CNBC TV18, 06 Jan

Porwal Auto Components secures BSE listing approval for preferential issue

scanx.trade, 19 Aug

PORWAL AUTO COMPONENTS LTD. Share Price

Upstox, 18 Aug

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Profitability · Valuation

MiddlingBusiness Quality

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

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑