Thaai Casting Limited

Sector n/a · NSE

₹194.00−₹3.05 (−1.55%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

The 60-second version of Thaai Casting 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 ₹146 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 14.6% 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.

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 +197% while net margin moved -15% 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+197%

Margin effect-15%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

35/ 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

16.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 31.1% to 11.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.6% to 14.6% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 312% over 3 years, from ₹30 Cr to ₹123 Cr.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 910% against revenue up 197% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 235% against revenue up 197% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.97 — near-term obligations exceed near-term assets.

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?

The debt load needs earnings to hold up
Debt is 3.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 235% against revenue up 197%. 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 31.1% to 11.5%. 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
3 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 33% a year✓ 43.8% CAGR
Latest reported year was 19.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 23%✓ 24.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹57 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 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

2 good · 8 neutral · 1 weak

Market Cap

₹472 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)

Not available

No data

Source didn't return this field

ROE

11.5%

Moderate

Moderate capital efficiency

ROCE

14.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.11x

Moderate

Moderate leverage

Revenue Growth (YoY)

19.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

15.3%

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

-₹57 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

42.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

8.8%

Average

Average bottom-line conversion

Current Ratio

0.97

Adequate

Adequate, but no real cushion

Technical Snapshot

SMA 20 / SMA 50

131.6 / 128.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹49 Cr	₹71 Cr	₹122 Cr	₹146 Cr	+43.8%
EBITDA	₹12 Cr	₹20 Cr	₹30 Cr	₹36 Cr	+43.2%
EBITDA Margin	25.3%	27.5%	24.7%	24.9%	—
PAT (Net Profit)	₹5 Cr	₹11 Cr	₹11 Cr	₹13 Cr	+36.3%
EPS	₹2.18	₹4.61	₹4.78	—	—
ROE	31.1%	14.8%	13.3%	11.5%	—
ROCE	27.6%	18.8%	17.1%	14.6%	—
Total Debt	₹30 Cr	₹46 Cr	₹90 Cr	₹123 Cr	+60.3%
Free Cash Flow	-₹7 Cr	-₹93 Cr	-₹44 Cr	-₹57 Cr	—

🟢 Revenue has grown at 43.8% a year over 3 years.

🟢 EBITDA has grown at 43.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 24.9% over 3 years.

🟢 PAT (Net Profit) has grown at 36.3% a year over 3 years.

🔴 ROE has fallen from 31.1% to 11.5% over 3 years (-19.7 pts).

🔴 ROCE has fallen from 27.6% to 14.6% over 3 years (-13.1 pts).

🔴 Total Debt has grown at 60.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹290 Cr

Total Liabilities

₹179 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹35 Cr

Capex

-₹92 Cr

Recent News

1 positive1 mixed4 general

Thaai Casting Ltd. Share Price Within 2% of 52-Week High

Univest, 14 Aug

Thaai Casting Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

Thaai Casting Limited concludes investor meetings on June 4

scanx.trade, 04 Jun

Thaai Casting Ltd. Share Price Up 8.44%: Stock Analysis

Univest, 20 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Thaai Casting Limited Records INR 62.25 Crore Consolidated Revenue in H1 FY26 with 16% YoY Growth

ANI News, 17 Nov

Thaai Casting FY26 net profit rises 15% to ₹12.75 crore

scanx.trade, 26 MayResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingBusiness Quality · Growth · Profitability · Valuation

WeakFinancial Health · 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. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑