Remsons Industries Limited

Consumer Cyclical — Auto Parts · NSE

₹96.86−₹1.60 (−1.63%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Remsons Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Remsons Industries Limited, together with its subsidiaries, manufactures and sells automotive components parts and related products in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees243

Annual revenue₹467 Cr

How does it make money?

Turns over ₹467 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 243 employees supports ₹1.92 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin11.7%

Net margin3.9%

Revenue / employee₹1.92 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Some evidence

ROCE of 17.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.3%

ROE12.1%

Peer median ROE23.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +50% while net margin moved +44% 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+50%

Margin effect+44%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 12.1% is moderate
✗ ROE has fallen by 7.7 points over the period

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

82/ 100

Cheap

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

19.6x

3Y Median

29.5x

40 monthly readings · mean 35.2x · range 18.7x–70.0x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 34% below its 3y median of 29.5x. 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 trades 57% below the peer median of 45.7x.

vs. its own history

Cheap

29.5x median over 40 months · -34%

vs. sector peers

Cheap

45.7x median of 4 peers · -57%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

19.6x

P/B

2.27x

EV/EBITDA

7.7x

PEG

0.67

Dividend Yield

0.31%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 8.9% to 11.7% over 3 years.
Cash generation is improving
Free cash flow is up 104% over 3 years.
Valuation below its historical average
At 19.6x the stock trades 34% below its own median of 29.5x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.8% to 12.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.9% to 17.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 22% 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 8.9% to 11.7%. 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 34% 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.
Cheaper than its peers
It trades 57% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Returns on shareholder capital are falling
ROE has dropped from 19.8% to 12.1%. 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

1Revenue growth stays above 11% a year✓ 14.5% CAGR
Latest reported year was 20.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹28 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 17.3%
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

4 good · 6 neutral · 1 weak

Market Cap

₹340 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.27x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.95

Profitable

Profitable on a per-share basis

ROE

12.1%

Moderate

Moderate capital efficiency

ROCE

17.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.63x

Moderate

Moderate leverage

Revenue Growth (YoY)

20.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-21.2%

Falling

Profits are shrinking

Dividend Yield

0.31%

Modest

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

Free Cash Flow

₹28 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹96.86

Operating Margin

5.1%

Average

Average margins

Net Margin

3.5%

Average

Average bottom-line conversion

Current Ratio

1.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.15

Market-like

Moves roughly in line with the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

105.1 / 96.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹311 Cr	₹310 Cr	₹375 Cr	₹467 Cr	+14.5%
EBITDA	₹28 Cr	₹34 Cr	₹41 Cr	₹55 Cr	+25.4%
EBITDA Margin	8.9%	11.1%	10.9%	11.7%	—
PAT (Net Profit)	₹8 Cr	₹13 Cr	₹14 Cr	₹18 Cr	+29.2%
EPS	₹2.93	₹4.48	₹4.12	₹5.17	+20.8%
ROE	19.8%	12.0%	11.4%	12.1%	—
ROCE	21.9%	16.9%	15.5%	17.3%	—
Total Debt	₹82 Cr	₹68 Cr	₹86 Cr	₹98 Cr	+6.1%
Free Cash Flow	₹14 Cr	₹4 Cr	-₹7 Cr	₹28 Cr	+26.9%

🟢 Revenue has grown at 14.5% a year over 3 years.

🟢 EBITDA has grown at 25.4% a year over 3 years.

🟢 EBITDA Margin has risen from 8.9% to 11.7% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 29.2% a year over 3 years.

🟢 EPS has grown at 20.8% a year over 3 years.

🔴 ROE has fallen from 19.8% to 12.1% over 3 years (-7.7 pts).

🔴 ROCE has fallen from 21.9% to 17.3% over 3 years (-4.6 pts).

🔴 Total Debt has grown at 6.1% a year over 3 years.

🟢 Free Cash Flow has grown at 26.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹361 Cr

Total Liabilities

₹204 Cr

Total Debt

₹98 Cr

Cash & Equivalents

₹20 Cr

Operating Cash Flow

₹60 Cr

Capex

-₹32 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.8%

Corporate Actions

Dividend Rate

₹0.3

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive3 mixed2 general

Remsons Industries appoints Shivani Kejriwal as whole-time director

scanx.trade, 16 Oct

Remsons Industries Share Analyst Review 2026: Price Target and Outlook

Univest, 08 JunAnalyst view

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

Remsons Industries whole time director Rahul Kejriwal dies

scanx.trade, 06 Oct

Why Remsons Industries' (NSE:REMSONSIND) Earnings Are Better Than They Seem

Simply Wall Street, 22 NovResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Ashok Leyland, Foseco India Dividend Record Date: Last Day To Buy Shares To Qualify

NDTV Profit, 02 JunCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Why Is Remsons Industries Share Price Falling Key Reasons 2026

Univest, 24 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

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 QualityWeak8.8/20

🟢Financial HealthStrong13.8/20

🟢GrowthStrong16.1/20

🔴ProfitabilityWeak6/15

🟢ValuationAttractive10.7/15

🔴RiskHigh4/10

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.

This thesis breaks if

✓Revenue growth stays above 11% a year14.5% CAGR
✓EBITDA margin holds above 10%11.7%
✓Free cash flow remains positive₹28 Cr
✓Debt / EBITDA stays below 2x1.8x
✓ROCE stays above 14%17.3%