Roto Pumps Limited

Industrials — Specialty Industrial Machinery · NSE

₹61.20−₹0.80 (−1.29%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Roto Pumps Limited, together with its subsidiaries, engages in the manufacture and sale of pumps and spare parts in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees277

Annual revenue₹283 Cr

How does it make money?

Turns over ₹283 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 277 employees supports ₹1.02 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.02 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. 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?Some evidence

ROCE of 15.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +26% while net margin moved -41% 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-41%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 8.0% is steady
✗ Profit has declined at 9.2% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

73/ 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

21.5x

3Y Median

35.1x

40 monthly readings · mean 34.1x · range 16.6x–49.2x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 39% below its 3y median of 35.1x. 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 67% below the peer median of 66.2x.

vs. its own history

Cheap

35.1x median over 40 months · -39%

vs. sector peers

Cheap

66.2x median of 4 peers · -67%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.3x

PEG

0.44

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 43% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 20.4% to 10.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.3% to 15.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 watch

🟡Profit is decliningFinancial
Net profit is down 25% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.4 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 50% against revenue up 26% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 43% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 39% 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 67% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹14 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 25.9% to 21.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 50% 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 20.4% to 10.3%. 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

1EBITDA margin holds above 19%✓ 21.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 8.0% CAGR
Latest reported year was 14.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 15.8%
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

6 good · 5 neutral · 0 weak

Market Cap

₹1,156 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.5x

Fair

Fairly valued against the generic band

P/B Ratio

4.80x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.84

Profitable

Profitable on a per-share basis

ROE

10.3%

Moderate

Moderate capital efficiency

ROCE

15.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

14.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

48.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.31%

Modest

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

Free Cash Flow

₹14 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

15.1%

Good

Healthy core-business profitability

Net Margin

9.4%

Average

Average bottom-line conversion

Current Ratio

2.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

62.3 / 64.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹224 Cr	₹273 Cr	₹292 Cr	₹283 Cr	+8.0%
EBITDA	₹58 Cr	₹69 Cr	₹67 Cr	₹61 Cr	+1.5%
EBITDA Margin	25.9%	25.2%	22.8%	21.5%	—
PAT (Net Profit)	₹33 Cr	₹39 Cr	₹34 Cr	₹25 Cr	-9.2%
EPS	₹3.51	₹2.09	₹1.79	₹1.31	-27.9%
ROE	20.4%	20.1%	15.3%	10.3%	—
ROCE	27.3%	26.9%	20.3%	15.8%	—
Total Debt	₹56 Cr	₹53 Cr	₹45 Cr	₹32 Cr	-17.0%
Free Cash Flow	-₹10 Cr	₹12 Cr	₹15 Cr	₹14 Cr	—

🟢 Revenue has grown at 8.0% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.5% a year).

🔴 EBITDA Margin has fallen from 25.9% to 21.5% over 3 years (-4.4 pts).

🔴 PAT (Net Profit) has shrunk at 9.2% a year over 3 years.

🔴 EPS has shrunk at 27.9% a year over 3 years.

🔴 ROE has fallen from 20.4% to 10.3% over 3 years (-10.1 pts).

🔴 ROCE has fallen from 27.3% to 15.8% over 3 years (-11.5 pts).

🟢 Total Debt has shrunk at 17.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹10 Cr to ₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹346 Cr

Total Liabilities

₹106 Cr

Cash & Equivalents

₹17 Cr

Operating Cash Flow

₹37 Cr

Capex

-₹23 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.5%

Corporate Actions

Dividend Rate

₹0.19

Ex-Dividend Date

21 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive2 mixed3 general

Why Is Roto Pumps Share Price Falling Key Reasons 2026

Univest, 30 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.

Roto Pumps appoints Jörg Gertz as Chief Sales and Marketing Officer

scanx.trade, 17 Oct

Roto Pumps (ROTO) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Roto Pumps rises after Q1 PAT climbs 47% YoY to Rs 9 crore

Business Standard, 10 AugResults

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

Is It Smart To Buy Roto Pumps Limited (NSE:ROTO) Before It Goes Ex-Dividend?

Simply Wall Street, 17 SeptCapital return

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

Why Roto Pumps Share Price is Rising

Equitymaster, 18 Dec

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability · Risk

WeakGrowth

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.

All 5 tripwires holding · see Key things to watch ↑