Promax Power Limited

Industrials — Engineering & Construction · BSE

₹15.99+₹0.48 (+3.09%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:50 pm

Understanding the Business

Company site ↗

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

What does this company do?

Promax Power Limited engages in executing turnkey power, substation, transmission line, hydro, distribution, electrification, civil construction, pre-engineered building, high rise building, and sewerage and water treatment projects in India.

IndustryEngineering & Construction

SectorIndustrials

Annual revenue₹71 Cr

How does it make money?

Turns over ₹71 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS 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 9.6% 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 ROE14.1%

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 +30% while net margin moved -7% 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+30%

Margin effect-7%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.8% is weak

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

47.0x

3Y Median

31.9x

40 monthly readings · mean 67.5x · range 11.8x–398.9x

Sector Median

30.1x

median of 3 sector peers

⚠️Current valuation is approximately 47% above its 3y median of 31.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 56% above the peer median of 30.1x.

vs. its own history

Expensive

31.9x median over 40 months · +47%

vs. sector peers

Expensive

30.1x median of 3 peers · +56%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

18.8x

PEG

7.32

What's Good / What's Bad

🟢 What's Going Well1

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

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 197% over 3 years, from ₹10 Cr to ₹30 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 80% against revenue up 30% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 109% against revenue up 30% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.9x to 1.5x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹10 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 8.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 80% against revenue up 30%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 47% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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 3%✓ 4.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 8.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 7% a year✓ 9.0% CAGR
Latest reported year was -7.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

4 / 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

2 good · 4 neutral · 5 weak

Market Cap

₹40 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

47.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.34

Profitable

Profitable on a per-share basis

ROE

2.8%

Weak

Weak capital efficiency

ROCE

9.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.97x

Moderate

Moderate leverage

Revenue Growth (YoY)

-7.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-63.4%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

3.0%

Weak

Assets generate little profit

Operating Margin

1.6%

Weak

Thin margins leave little room for error

Net Margin

1.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.22

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

13.2 / 12.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

87.1

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹55 Cr	₹60 Cr	₹66 Cr	₹71 Cr	+9.0%
EBITDA	₹2 Cr	₹3 Cr	₹5 Cr	₹3 Cr	+22.8%
EBITDA Margin	3.4%	5.5%	7.3%	4.8%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹1 Cr	+6.4%
EPS	₹0.4	₹1.1	₹0.94	—	—
ROE	3.1%	5.0%	7.8%	2.8%	—
ROCE	8.3%	11.6%	14.8%	9.6%	—
Total Debt	₹10 Cr	₹13 Cr	₹19 Cr	₹30 Cr	+43.7%
Free Cash Flow	-₹17 Cr	₹2 Cr	-₹3 Cr	-₹10 Cr	—

🟢 Revenue has grown at 9.0% a year over 3 years.

🟢 EBITDA has grown at 22.8% a year over 3 years.

🟢 EBITDA Margin has risen from 3.4% to 4.8% over 3 years (+1.4 pts).

🟢 PAT (Net Profit) has grown at 6.4% a year over 3 years.

🟡 ROE has held roughly flat at 2.8% over 3 years.

🟢 ROCE has risen from 8.3% to 9.6% over 3 years (+1.3 pts).

🔴 Total Debt has grown at 43.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹66 Cr

Total Liabilities

₹35 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.3%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 mixed1 negative4 general

Promax Power sets AGM for Sep 30; FY26 net profit falls 63% to ₹85.67 lakh

scanx.trade, 07 SeptResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

iPhone 18 Pro Max vs Galaxy S26 Ultra: Key differences in camera, display, battery and performance

Livemint, 17 Oct

Apple cuts iPhone 18 Pro component orders by 15% amid weak demand

Business Standard, 09 Oct

Adani Power shares: Why Morgan Stanley ups target price by 60% on it?

Business Today, 24 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Promax Power Appoints M/s. Manish Jain & Associates as Statutory Auditors via Postal Ballot

scanx.trade, 11 May

The Redmi Note 17 Pro Max has a battery so big, it doubles as a power bank. I tried it out

Android Police, 27 Aug

Watch Items

Revenue growth is negative (-7.2%) on the latest reported period — check if this is one-off or a trend.
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

MiddlingFinancial Health · Growth

WeakBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑