Pulz Electronics Limited

Sector n/a · NSE

₹104.65−₹1.95 (−1.83%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

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

How does it make money?

Turns over ₹33 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 16.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 -6% 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-6%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 9.8% a year
✗ Profit has declined at 11.7% a year

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

18/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

32.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 32.2% to 12.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 41.7% to 16.7% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 83% over 3 years, from ₹0 Cr to ₹0 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 45% against revenue up -26% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 31% over 3 years.

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?

Sales are being booked faster than collected
Receivables are up 45% 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.
Returns on shareholder capital are falling
ROE has dropped from 32.2% to 12.2%. 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.
Several serious flags at once
2 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

1EBITDA margin holds above 19%✓ 21.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹6 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 14%✓ 16.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹228 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹2.13

Profitable

Profitable on a per-share basis

ROE

12.2%

Moderate

Moderate capital efficiency

ROCE

16.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.75x

Moderate

Moderate leverage

Revenue Growth (YoY)

-9.7%

Shrinking

Sales are contracting

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

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

60.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

14.1%

Good

Strong bottom-line conversion

Current Ratio

6.73

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

21.5 / 22.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

77.9

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹45 Cr	₹38 Cr	₹37 Cr	₹33 Cr	-9.8%
EBITDA	₹10 Cr	₹12 Cr	₹9 Cr	₹7 Cr	-11.0%
EBITDA Margin	22.1%	30.4%	25.5%	21.2%	—
PAT (Net Profit)	₹7 Cr	₹8 Cr	₹4 Cr	₹5 Cr	-11.7%
EPS	₹3.09	₹3.8	₹1.91	₹2.13	-11.7%
ROE	32.2%	28.3%	12.5%	12.2%	—
ROCE	41.7%	35.9%	16.6%	16.7%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+22.3%
Free Cash Flow	-₹1 Cr	₹4 Cr	₹2 Cr	₹6 Cr	—

🔴 Revenue has shrunk at 9.8% a year over 3 years.

🔴 EBITDA has shrunk at 11.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 21.2% over 3 years.

🔴 PAT (Net Profit) has shrunk at 11.7% a year over 3 years.

🔴 EPS has shrunk at 11.7% a year over 3 years.

🔴 ROE has fallen from 32.2% to 12.2% over 3 years (-20.0 pts).

🔴 ROCE has fallen from 41.7% to 16.7% over 3 years (-25.0 pts).

🔴 Total Debt has grown at 22.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹45 Cr

Total Liabilities

₹7 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹0 Cr

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Watch Items

Revenue growth is negative (-9.7%) 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.
Sector/industry classification unavailable — verify manually for peer comparison.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingProfitability · Valuation

WeakGrowth · Risk

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

All 4 tripwires holding · see Key things to watch ↑