Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.
In simple words: The company is currently losing money, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.
Decision support, not a buy or sell call.
As of 18 Oct 2026, 6:02 pm
Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.
The 60-second version of Midwest Energy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.
What does this company do?
Midwest Energy Limited engages in the processing and trading of granite, marbles, and other natural stones in India. The company was formerly known as Midwest Gold Limited and changed its name to Midwest Energy Limited in May 2026.
IndustryElectrical Equipment & Parts
SectorIndustrials
Employees40
Annual revenue₹9 Cr
How does it make money?
Turns over ₹9 Cr a year. Of every ₹100 of sales, about ₹-146 reaches shareholders as profit, with ₹-94 left at the operating level before interest, tax and depreciation. Each of its 40 employees supports ₹21.6 lakh of revenue a year, the signature of a people-led business.
EBITDA margin-93.9%
Net margin-145.6%
Revenue / employee₹21.6 lakh
Who are its competitors?
The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.
SIEMENS LTDP/E 88.8x · ROE 10.5%
ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%
HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%
What is its competitive advantage?Little sign of one
Returns on capital of -1.9% 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.
ROCE-1.9%
ROE-3.1%
Peer median ROE17.1%
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 +395% while net margin moved -73% 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+395%
Margin effect-73%
DalalBaazaar Score
40/ 100
Moderate
Weighted across six categories. Every point is explained below.
✗ Return on equity is negative
Quality vs. Valuation
Company Quality
44/ 100
Weak
How good the business is, ignoring the share price entirely.
vs
Valuation
21/ 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.
vs. its own history
Not enough price and earnings history
vs. sector peers
Not enough peers with a usable P/E
vs. generic bands
N/A
No P/E — the company is lossmaking
P/E (Trailing)
Not meaningful
P/B
7.31x
EV/EBITDA
—
PEG
—
Dividend Yield
None
What's Good / What's Bad
🟢 What's Going Well1
Margins are improving
EBITDA margin is up from -295.4% to -93.9% over 3 years.
🔴 What Needs Attention3
Debt is rising
Total debt is up 1047% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 2014% against revenue growth of 395% — customers are taking longer to pay.
Red Flags
7 items require attention · 5 high · 2 watch
🔴Debt has risen sharplyFinancial
Total debt is up 1047% over 3 years, from ₹25 Cr to ₹288 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -4.4x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹13 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 2014% against revenue up 395% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -1.9x to -4.4x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 294% over 3 years — each existing share owns a smaller slice of the company.
Investment Thesis
🟢 Bull CaseWhat could make this work?
Margin expansion has further to run
EBITDA margin has risen from -295.4% to -93.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
🔴 Bear CaseWhat could go wrong?
Sales are being booked faster than collected
Receivables are up 2014% against revenue up 395%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
5 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 53% a year✓ 70.4% CAGR
Latest reported year was 1163.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -96%✓ -93.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹328 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -4.4x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -1.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
Investment Checklist
5 / 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
1 good · 3 neutral · 7 weak
Market Cap
₹3,357 Cr
Micro Cap
Smaller company — thin liquidity and deep drawdowns are normal here
P/E (Trailing)
Not meaningful
Loss-making
Earnings are negative, so a P/E multiple can't be read here
P/B Ratio
7.31x
Rich
Steep premium to book — needs high, durable returns to justify
EPS (TTM)
₹-0.95
Loss-making
Negative earnings per share — the business is losing money
ROE
-3.1%
Weak
Weak capital efficiency
ROCE
-1.9%
Weak
Low return on total capital employed
Debt/Equity
0.76x
Moderate
Moderate leverage
Revenue Growth (YoY)
1163.6%
Healthy
Healthy top-line growth
Profit Growth (YoY)
-125.2%
Falling
Profits are shrinking
Dividend Yield
None
None
No dividend yield reported — usually means no payout, but verify if one was recently initiated
Free Cash Flow
-₹328 Cr
Cash burning
Spending more cash than the operations bring in
More Metrics
CMP
₹258.75
Operating Margin
-22.4%
Weak
Thin margins leave little room for error
Net Margin
-78.1%
Weak
Very little revenue reaches the bottom line
Current Ratio
2.21
Comfortable
Healthy short-term liquidity
Beta (vs Nifty)
0.07
Defensive
Steadier than the market
52W Range Position
15%
Mid-range
Mid-range
Technical Snapshot
SMA 20 / SMA 50
329.3 / 349.9
Bearish alignment (short < long)
Price vs SMA 200
Below
Long-term downtrend
RSI (14)
20.4
Oversold zone
Financial Trend (4-Year)
Metric
FY23
FY24
FY25
FY26
3Y CAGR
Revenue
₹2 Cr
₹1 Cr
₹1 Cr
₹9 Cr
+70.4%
EBITDA
-₹5 Cr
-₹1 Cr
-₹4 Cr
-₹8 Cr
—
EBITDA Margin
-295.4%
-95.9%
-491.2%
-93.9%
—
PAT (Net Profit)
-₹10 Cr
-₹2 Cr
-₹6 Cr
-₹13 Cr
—
EPS
₹-29.38
₹-7.02
₹-12.36
₹-11.15
—
ROE
—
—
-6.5%
-3.1%
—
ROCE
—
—
-2.7%
-1.9%
—
Total Debt
₹25 Cr
₹27 Cr
₹92 Cr
₹288 Cr
+125.5%
Free Cash Flow
-₹2 Cr
-₹0 Cr
-₹116 Cr
-₹328 Cr
—
🟢 Revenue has grown at 70.4% a year over 3 years.
🟢 EBITDA Margin has risen from -295.4% to -93.9% over 3 years (+201.5 pts).
🟢 ROE has risen from -6.5% to -3.1% over 3 years (+3.3 pts).
🟡 ROCE has held roughly flat at -1.9% over 3 years.
🔴 Total Debt has grown at 125.5% a year over 3 years.
🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.
Watch Items
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.
DalalBaazaar Thesis
🔴Business QualityWeak4.3/20
🟡Financial HealthAdequate9.2/20
🟢GrowthStrong18.4/20
🔴ProfitabilityWeak1.3/15
🔴ValuationDemanding2.6/15
🔴RiskHigh4/10
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. 5 high-severity red flags sit above this conclusion and should be read first.
