Powerica Limited

Industrials — Specialty Industrial Machinery · NSE

₹584.90−₹4.35 (−0.74%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently 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 Powerica Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Powerica Limited manufactures, supplies, installs, and services diesel generator sets in India. It operates through Generator Set Business and Wind Power segments.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees869

Annual revenue₹2,643 Cr

How does it make money?

Turns over ₹2,643 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 869 employees supports ₹3.04 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin13.5%

Net margin6.3%

Revenue / employee₹3.04 Cr

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 17.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.4%

ROE15.4%

Peer median ROE17.1%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 13.5% and earnings to grow about 23.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.5%

Est. earnings growth+23.5%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 2 years revenue moved +12% while net margin moved +40% 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+12%

Margin effect+40%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ 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

65/ 100

Good

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

Valuation

64/ 100

Fair

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

26.3x

Sector Median

66.2x

median of 4 sector peers

🟢Against its sector it trades 60% below the peer median of 66.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

66.2x median of 4 peers · -60%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

26.3x

P/B

3.27x

EV/EBITDA

21.5x

PEG

1.05

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention3

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 21.6% to 17.4% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 52% against revenue growth of 12% — customers are taking longer to pay.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹86 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 52% against revenue up 12% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 52% against revenue up 12%. 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 5.8% 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
Small 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 12%✓ 13.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹86 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 5.8% CAGR
Latest reported year was 26.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 17.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹7,402 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.3x

Fair

Fairly valued against the generic band

P/B Ratio

3.27x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹22.22

Profitable

Profitable on a per-share basis

ROE

15.4%

Strong

Strong capital efficiency

ROCE

17.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

26.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.4%

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

-₹86 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹584.9

P/E (Forward)

23.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.7%

Average

Average margins

Net Margin

8.9%

Average

Average bottom-line conversion

Current Ratio

1.34

Comfortable

Healthy short-term liquidity

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

585.1 / 555.2

Bullish alignment (short > long)

RSI (14)

50.9

Neutral momentum

Financial Trend (3-Year)

Metric	FY23	FY24	FY25	2Y CAGR
Revenue	₹2,361 Cr	₹2,199 Cr	₹2,643 Cr	+5.8%
EBITDA	₹334 Cr	₹356 Cr	₹358 Cr	+3.4%
EBITDA Margin	14.2%	16.2%	13.5%	—
PAT (Net Profit)	₹106 Cr	₹226 Cr	₹167 Cr	+25.2%
EPS	₹8.41	₹17.88	₹13.18	+25.2%
ROE	13.4%	24.8%	15.4%	—
ROCE	21.6%	28.6%	17.4%	—
Total Debt	₹279 Cr	₹172 Cr	₹312 Cr	+5.8%
Free Cash Flow	₹190 Cr	₹30 Cr	-₹86 Cr	—

🟢 Revenue has grown at 5.8% a year over 2 years.

🟢 EBITDA has grown at 3.4% a year over 2 years.

🟡 EBITDA Margin has held roughly flat at 13.5% over 2 years.

🟢 PAT (Net Profit) has grown at 25.2% a year over 2 years.

🟢 EPS has grown at 25.2% a year over 2 years.

🟢 ROE has risen from 13.4% to 15.4% over 2 years (+2.0 pts).

🔴 ROCE has fallen from 21.6% to 17.4% over 2 years (-4.2 pts).

🔴 Total Debt has grown at 5.8% a year over 2 years.

🔴 Free Cash Flow has turned negative, from ₹190 Cr to -₹86 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹2,415 Cr

Total Liabilities

₹1,321 Cr

Total Debt

₹312 Cr

Cash & Equivalents

₹21 Cr

Operating Cash Flow

₹247 Cr

Capex

-₹333 Cr

Shareholding (proxy)

Institutional Holding

24.2%

Insider Holding

77.2%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹700

+19.7% vs CMP

Target Range

₹700 – ₹700

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

2 mixed4 general

Powerica Ltd. IPO Review - Powerica Ltd. IPO Dates, Issue Price, Subscription and Allotment Status

The Economic Times, 13 Oct

POWERICA Stock Price and Chart — NSE:POWERICA

TradingView, 26 Sept

Powerica shares settle lower after tepid market debut; should you buy, sell or hold?

Moneycontrol.com, 02 AprPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Powerica Ltd | Stock Share Price Live

MarketSmith India, 06 May

April-listed Powerica posts 226% YoY Q3 PAT growth; repays Rs 525 crore debt post IPO

The Economic Times, 21 AprResults

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

Powerica share price: Stock lists at 7% discount on NSE; here's how much investors lost per lot

Upstox, 01 Apr

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong13.2/20

🟢GrowthStrong13.1/20

🟢ProfitabilityStrong10.2/15

🟡ValuationFair7.5/15

🔴RiskHigh3.1/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓EBITDA margin holds above 12%13.5%
✗Free cash flow remains positive-₹86 Cr
✓Revenue growth stays above 4% a year5.8% CAGR
✓Debt / EBITDA stays below 2x0.9x
✓ROCE stays above 14%17.4%