Scan Projects Limited

Industrials — Specialty Industrial Machinery · BSE

₹102.00₹0.00 (0.00%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:44 pm

Understanding the Business

Company site ↗

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

What does this company do?

Scan Projects Limited provides engineering services in India and Nepal. It operates in two segments, Erection, Commissioning, Supervision and Annual Maintenance Contract; and Trading Activities.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Annual revenue₹16 Cr

How does it make money?

Turns over ₹16 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

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 15.5% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +168% while net margin moved +236% 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+168%

Margin effect+236%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

67/ 100

Fair

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

42.7x

3Y Median

98.7x

40 monthly readings · mean 194.3x · range 28.2x–804.5x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 57% below its 3y median of 98.7x. 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 36% below the peer median of 66.2x.

vs. its own history

Cheap

98.7x median over 40 months · -57%

vs. sector peers

Cheap

66.2x median of 4 peers · -36%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

26.2x

PEG

0.39

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 1.7% to 11.5%.
Return on capital is rising
ROCE has improved from 3.6% to 15.5%.
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

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 711% over 3 years, from ₹0 Cr to ₹1 Cr.
🔴High leverageFinancial
Debt/Equity of 9.80x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 356% against revenue up 168% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 57% 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 36% 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?

Leverage amplifies any setback
Debt/Equity of 9.80x. Interest is payable whether or not the business has a good year.
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
4 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 29% a year✓ 38.9% CAGR
Latest reported year was 31.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹29 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

42.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹2.39

Profitable

Profitable on a per-share basis

ROE

11.5%

Moderate

Moderate capital efficiency

ROCE

15.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.80x

High

High leverage

Revenue Growth (YoY)

31.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

24.7%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.96

Comfortable

Healthy short-term liquidity

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

103.2 / 113.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹8 Cr	₹12 Cr	₹16 Cr	+38.9%
EBITDA	₹0 Cr	₹1 Cr	₹2 Cr	₹1 Cr	+36.1%
EBITDA Margin	7.4%	12.6%	18.1%	7.0%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+108.1%
EPS	₹0.28	₹0.19	₹1.99	₹2.49	+107.2%
ROE	1.7%	1.1%	10.6%	11.5%	—
ROCE	3.6%	2.1%	14.2%	15.5%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+100.9%
Free Cash Flow	₹1 Cr	₹0 Cr	₹3 Cr	₹1 Cr	-16.8%

🟢 Revenue has grown at 38.9% a year over 3 years.

🟢 EBITDA has grown at 36.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.0% over 3 years.

🟢 PAT (Net Profit) has grown at 108.1% a year over 3 years.

🟢 EPS has grown at 107.2% a year over 3 years.

🟢 ROE has risen from 1.7% to 11.5% over 3 years (+9.9 pts).

🟢 ROCE has risen from 3.6% to 15.5% over 3 years (+11.9 pts).

🔴 Total Debt has grown at 100.9% a year over 3 years.

🔴 Free Cash Flow has shrunk at 16.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹8 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.1%

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 positive3 mixed2 general

Cemindia Projects seeks approval to raise ₹5,000 crore via QIP

scanx.trade, 18 OctFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Compare VINTRON INFORM with

Equitymaster, 10 Oct

BKV (BKV) Could Be 37% Undervalued After Its Texas Power Project Deal

Simply Wall Street, 16 Oct

Vishwaraj Sugar Industries reports standalone net loss of Rs 25.84 crore in the June 2026 quarter

Business Standard, 14 AugResults

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

Scan Projects FY26 revenue up 31% to ₹1568.75 Lacs; PAT rises 22%

scanx.trade, 02 SeptResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Annu Projects Q1FY27 Results: Net profit at ₹127 lakh, revenue ₹1,991 lakh

scanx.trade, 23 SeptResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Valuation

WeakRisk

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

All 5 tripwires holding · see Key things to watch ↑