Poojaa Precision Engg. Limited

Consumer Cyclical — Auto Parts · BSE

₹864.90+₹19.05 (+2.25%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Poojaa Precision Engg. Limited, a precision engineering company, manufactures and sells aluminium and machined components in India.

IndustryAuto Parts

SectorConsumer Cyclical

Annual revenue₹294 Cr

How does it make money?

Turns over ₹294 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation.

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?Little sign of one

Returns on capital of the level reported 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.

Peer median ROE23.0%

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 +80% while net margin moved +22% 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+80%

Margin effect+22%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 55.8x is demanding — it needs sustained high growth to justify
✗ P/B of 9.51x is a steep premium to book

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

28/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

55.8x

Sector Median

45.7x

median of 4 sector peers

⚠️Against its sector it trades 22% above the peer median of 45.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

45.7x median of 4 peers · +22%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

32.4x

PEG

1.87

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 15.3% to 18.1% over 3 years.
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 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹31 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 15.3% to 18.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

A premium to the sector to defend
It trades 22% above the peer median. That premium needs a reason that persists, or it closes.
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 16% a year✓ 21.6% CAGR
Latest reported year was 32.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹31 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 10 checks passed

✓ Strong return on equity (ROE ≥ 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

₹1,725 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

55.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.51x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹15.49

Profitable

Profitable on a per-share basis

ROE

30.9%

Strong

Strong capital efficiency

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

32.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

29.1%

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

-₹40 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

16.9%

Good

Assets are working hard

Operating Margin

19.8%

Good

Healthy core-business profitability

Net Margin

11.4%

Good

Strong bottom-line conversion

Current Ratio

1.56

Comfortable

Healthy short-term liquidity

52W Range Position

99%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

791.8 / 687.7

Bullish alignment (short > long)

RSI (14)

60.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹163 Cr	₹174 Cr	₹222 Cr	₹294 Cr	+21.6%
EBITDA	₹25 Cr	₹28 Cr	₹41 Cr	₹53 Cr	+28.7%
EBITDA Margin	15.3%	16.3%	18.3%	18.1%	—
PAT (Net Profit)	₹14 Cr	₹16 Cr	₹24 Cr	₹31 Cr	+29.9%
ROE	27.7%	24.8%	27.8%	—	—
ROCE	33.2%	32.1%	34.6%	—	—
Total Debt	₹16 Cr	₹14 Cr	₹20 Cr	—	—
Free Cash Flow	-₹1 Cr	₹1 Cr	-₹7 Cr	-₹31 Cr	—

🟢 Revenue has grown at 21.6% a year over 3 years.

🟢 EBITDA has grown at 28.7% a year over 3 years.

🟢 EBITDA Margin has risen from 15.3% to 18.1% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 29.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

—

Total Liabilities

—

Cash & Equivalents

—

Operating Cash Flow

₹24 Cr

Capex

-₹54 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.8%

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

1 mixed5 general

POOJAA PRECISION ENGG. LIMITED Share Price - Live PPEL Stock Price & Chart

Upstox, 16 Oct

Poojaa Precision Engg. Ltd. Share Price Live Today

CNBC TV18, 16 Oct

Poojaa Precision Engg. Ltd Share Price

Business Today, 16 Oct

Poojaa Precision Engg. IPO: GMP, Date, Price Band & Review

IndiaIPO, 23 Jul

Strong market debut: Poojaa Precision Engg. shares list at decent premium of 56% on BSE SME

Moneycontrol.com, 04 Aug

POOJAA PRECISION ENGG. LIMITED (PPEL) Share Price Rises 10.45% Today

Univest, 18 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.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

1 of 3 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑