Prime Industries Limited

Real Estate — Real Estate Services · BSE

₹150.87+₹7.18 (+5.00%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

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, 6:04 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 Prime Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Prime Industries Limited engages in the manufacturing and supplying of farm and agricultural machinery, implements, mechanical and scientific equipment and related products.

IndustryReal Estate Services

SectorReal Estate

Employees4

Annual revenue₹91 Cr

How does it make money?

Turns over ₹91 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹22.65 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin20.3%

Net margin17.7%

Revenue / employee₹22.65 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

DLF LIMITEDP/E 36.6x · ROE 10.3%

GODREJ PROPERTIES LTDP/E 30.2x · ROE 8.4%

OBEROI REALTY LIMITEDP/E 23.5x · ROE 14.7%

What is its competitive advantage?Some evidence

ROCE of 19.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.4%

ROE25.1%

Peer median ROE10.3%

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 +1516% 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+1516%

Margin effect-37%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.96 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

67/ 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

29.5x

3Y Median

46.2x

40 monthly readings · mean 81.8x · range 5.4x–267.0x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 36% below its 3y median of 46.2x. 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 30.2x.

vs. its own history

Cheap

46.2x median over 40 months · -36%

vs. sector peers

Fair

30.2x median of 3 peers · -2%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

29.5x

P/B

4.97x

EV/EBITDA

21.3x

PEG

0.25

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 16.5% to 20.3% over 3 years.
Return on equity is rising
ROE has improved from 7.7% to 25.1%.
Return on capital is rising
ROCE has improved from 8.8% to 19.4%.
Valuation below its historical average
At 29.5x the stock trades 36% below its own median of 46.2x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 2674% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Inventory building faster than sales
Inventory is up 2561% against revenue growth of 1516% — stock may not be moving.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 2674% over 3 years, from ₹3 Cr to ₹75 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 2561% against revenue up 1516% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹61 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 34% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.4% 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.
Margin expansion has further to run
EBITDA margin has risen from 16.5% to 20.3%. 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 36% 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?

The debt load needs earnings to hold up
Debt is 4.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
Several serious flags at once
3 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 115% a year✓ 152.8% CAGR
Latest reported year was 1030.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 20.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.1x
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✗ -₹61 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 16%✓ 19.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 5 neutral · 1 weak

Market Cap

₹358 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.5x

Fair

Fairly valued against the generic band

P/B Ratio

4.97x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.11

Profitable

Profitable on a per-share basis

ROE

25.1%

Strong

Strong capital efficiency

ROCE

19.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.01x

Moderate

Moderate leverage

Revenue Growth (YoY)

1030.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

176.9%

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

-₹61 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹150.87

Operating Margin

20.7%

Good

Healthy core-business profitability

Net Margin

16.2%

Good

Strong bottom-line conversion

Current Ratio

1.89

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.96

Market-like

Moves roughly in line with the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

98.7 / 64.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹2 Cr	—	₹91 Cr	+152.8%
EBITDA	₹1 Cr	₹3 Cr	₹3 Cr	₹18 Cr	+171.2%
EBITDA Margin	16.5%	191.7%	—	20.3%	—
PAT (Net Profit)	₹2 Cr	₹11 Cr	₹1 Cr	₹16 Cr	+116.9%
EPS	₹1	₹5.27	₹0.87	₹7.62	+96.8%
ROE	7.7%	48.7%	3.9%	25.1%	—
ROCE	8.8%	62.3%	7.7%	19.4%	—
Total Debt	₹3 Cr	₹6 Cr	₹16 Cr	₹75 Cr	+202.7%
Free Cash Flow	₹3 Cr	₹20 Cr	-₹19 Cr	-₹61 Cr	—

🟢 Revenue has grown at 152.8% a year over 3 years.

🟢 EBITDA has grown at 171.2% a year over 3 years.

🟢 EBITDA Margin has risen from 16.5% to 20.3% over 3 years (+3.9 pts).

🟢 PAT (Net Profit) has grown at 116.9% a year over 3 years.

🟢 EPS has grown at 96.8% a year over 3 years.

🟢 ROE has risen from 7.7% to 25.1% over 3 years (+17.4 pts).

🟢 ROCE has risen from 8.8% to 19.4% over 3 years (+10.7 pts).

🔴 Total Debt has grown at 202.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹61 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹171 Cr

Total Liabilities

₹97 Cr

Total Debt

₹75 Cr

Cash & Equivalents

₹41 Cr

Operating Cash Flow

-₹59 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.2%

Corporate Actions

Ex-Dividend Date

27 Dec 1996

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 positive5 general

Prime Industries Subsidiary Linga Agri Secures Funding at 330 Crore Valuation

Whalesbook, 18 Oct

Linga Agri raises funds at ₹330 crore valuation; revenue jumps to ₹84 crore

scanx.trade, 18 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Prime Industries Upper Circuit Streak: Day 4 Price and Data

Univest, 13 Oct

Prime Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Prime Industries Ltd (PRIMIND) Share: Key Signals Investors Are Watching

Kalkine India, 14 Sept

Prime Industries promoters cut stake to 6.11% after 41.9 lakh share sale

scanx.trade, 15 Sept

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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong17.1/20

🟡Financial HealthAdequate10.9/20

🟢GrowthStrong14.7/20

🟢ProfitabilityStrong12.9/15

🟡ValuationFair9.5/15

🔴RiskHigh3.7/10

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

This thesis breaks if

✓Revenue growth stays above 115% a year152.8% CAGR
✓EBITDA margin holds above 18%20.3%
✗Debt / EBITDA falls below 3x4.1x
✗Free cash flow remains positive-₹61 Cr
✓ROCE stays above 16%19.4%