Pradeep Metals Limited

Industrials — Metal Fabrication · NSE

₹681.85−₹7.50 (−1.09%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Pradeep Metals Limited, together with its subsidiaries, engages in the manufacturing and sale of closed die steel forgings and processing in India and internationally. It operates through Power Generation; and Closed Die Forging and Processing segments.

IndustryMetal Fabrication

SectorIndustrials

Employees538

Annual revenue₹300 Cr

How does it make money?

Turns over ₹300 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 538 employees supports ₹55.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹55.8 lakh

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 24.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.5% 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 +26% while net margin moved -8% 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+26%

Margin effect-8%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

• P/E of 35.5x already prices in growth
✗ P/B of 7.17x is a steep premium to book

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

27/ 100

Expensive

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

35.5x

Sector Median

12.2x

median of 4 sector peers

⚠️Against its sector it trades 192% above the peer median of 12.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

12.2x median of 4 peers · +192%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

22.3x

PEG

7.15

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 24.1% 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 Attention2

Return on equity is falling
ROE has dropped from 27.8% to 18.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 31.2% to 24.1% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 75% against revenue up 26% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.1% 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.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹9 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Sales are being booked faster than collected
Receivables are up 75% against revenue up 26%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 192% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 8.0% 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.
Returns on shareholder capital are falling
ROE has dropped from 27.8% to 18.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 17%✓ 18.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 8.0% CAGR
Latest reported year was 20.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹9 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 24.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 10 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

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹1,178 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.5x

Fair

Fairly valued against the generic band

P/B Ratio

7.17x

Rich

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

EPS (TTM)

₹19.19

Profitable

Profitable on a per-share basis

ROE

18.5%

Strong

Strong capital efficiency

ROCE

24.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

20.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

50.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.37%

Modest

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

Free Cash Flow

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.0%

Average

Average margins

Net Margin

9.4%

Average

Average bottom-line conversion

Current Ratio

1.51

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

85%

Mid-range

Technical Snapshot

RSI (14)

74.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹238 Cr	₹249 Cr	₹276 Cr	₹300 Cr	+8.0%
EBITDA	₹46 Cr	₹44 Cr	₹49 Cr	₹56 Cr	+6.9%
EBITDA Margin	19.2%	17.6%	17.8%	18.6%	—
PAT (Net Profit)	₹26 Cr	₹22 Cr	₹27 Cr	₹30 Cr	+5.0%
EPS	₹15.19	₹12.9	₹15.73	₹17.57	+5.0%
ROE	27.8%	19.6%	19.8%	18.5%	—
ROCE	31.2%	25.0%	25.8%	24.1%	—
Total Debt	₹73 Cr	₹73 Cr	₹71 Cr	₹75 Cr	+1.2%
Free Cash Flow	₹18 Cr	₹13 Cr	₹10 Cr	₹9 Cr	-22.1%

🟢 Revenue has grown at 8.0% a year over 3 years.

🟢 EBITDA has grown at 6.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 18.6% over 3 years.

🟢 PAT (Net Profit) has grown at 5.0% a year over 3 years.

🟢 EPS has grown at 5.0% a year over 3 years.

🔴 ROE has fallen from 27.8% to 18.5% over 3 years (-9.3 pts).

🔴 ROCE has fallen from 31.2% to 24.1% over 3 years (-7.2 pts).

🟡 Total Debt has been broadly flat over 3 years (1.2% a year).

🔴 Free Cash Flow has shrunk at 22.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹320 Cr

Total Liabilities

₹155 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹32 Cr

Capex

-₹24 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.2%

Corporate Actions

Dividend Rate

₹2.5

Ex-Dividend Date

31 Jul 2026

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

1 mixed5 general

Pradeep Metals (PRADPME) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Pradeep Metals Ltd. (PRADPME) 52 Week High Streak: Second Straight Session Near Peak

Univest, 13 Oct

Pradeep Metals (BSE:513532) - Stock Analysis

Simply Wall Street, 11 Oct

PRADPME Stock Price and Chart — NSE:PRADPME

TradingView, 20 Apr

Pradeep Metals Limited (PRADPME.NS) Jumps 8.10% to ₹635.35 as Buyers Take Control - ETF Outflow Streak

https://www.siam.in/, 09 Oct

Pradeep Metals Posts Q1 Consolidated Net Profit Of 84M Rupees, Revenue At 937M

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.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Profitability · Risk

WeakGrowth · Valuation

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.

All 5 tripwires holding · see Key things to watch ↑