Technocraft Ventures Limited

Industrials — Infrastructure Operations · NSE

₹495.50−₹8.80 (−1.74%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Technocraft Ventures Limited engages in the engineering, procurement, and construction (EPC) turnkey projects.

IndustryInfrastructure Operations

SectorIndustrials

Annual revenue₹345 Cr

How does it make money?

Turns over ₹345 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 35.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 26.5% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +93% while net margin moved +107% 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+93%

Margin effect+107%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 43.9x is demanding — it needs sustained high growth to justify
✗ P/B of 9.13x is a steep premium to book

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

37/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

43.9x

Sector Median

30.0x

median of 2 sector peers

⚠️Against its sector it trades 46% above the peer median of 30.0x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

30.0x median of 2 peers · +46%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

29.1x

PEG

0.75

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 11.9% to 20.3% over 3 years.
Cash generation is improving
Free cash flow is up 210% over 3 years.
Return on equity is rising
ROE has improved from 14.9% to 26.5%.
Return on capital is rising
ROCE has improved from 21.4% to 35.1%.
High return on capital employed
ROCE of 35.1% is the mark of a business that converts capital into profit efficiently.
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

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 77% over 3 years, from ₹51 Cr to ₹90 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 158% against revenue up 93% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 35.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 11.9% to 20.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Sales are being booked faster than collected
Receivables are up 158% against revenue up 93%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 46% above the peer median. That premium needs a reason that persists, or it closes.
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
2 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 18% a year✓ 24.6% CAGR
Latest reported year was 2.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 20.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹27 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 32%✓ 35.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 10 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

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹1,962 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

43.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.13x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹11.28

Profitable

Profitable on a per-share basis

ROE

26.5%

Strong

Strong capital efficiency

ROCE

35.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.55x

Low

Conservative leverage

Revenue Growth (YoY)

2.2%

Modest

Modest growth

Profit Growth (YoY)

14.5%

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

₹27 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

18.9%

Good

Healthy core-business profitability

Net Margin

12.9%

Good

Strong bottom-line conversion

Current Ratio

1.74

Comfortable

Healthy short-term liquidity

52W Range Position

92%

Near high

Near its 52-week high

Technical Snapshot

RSI (14)

53.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹178 Cr	₹207 Cr	₹275 Cr	₹345 Cr	+24.6%
EBITDA	₹21 Cr	₹33 Cr	₹49 Cr	₹70 Cr	+48.9%
EBITDA Margin	11.9%	16.0%	17.9%	20.3%	—
PAT (Net Profit)	₹11 Cr	₹19 Cr	₹28 Cr	₹43 Cr	+58.9%
EPS	₹11.37	₹20.05	₹29.67	—	—
ROE	14.9%	20.8%	23.5%	26.5%	—
ROCE	21.4%	25.8%	32.1%	35.1%	—
Total Debt	₹51 Cr	₹80 Cr	₹87 Cr	₹90 Cr	+20.9%
Free Cash Flow	₹9 Cr	-₹1 Cr	₹18 Cr	₹27 Cr	+45.9%

🟢 Revenue has grown at 24.6% a year over 3 years.

🟢 EBITDA has grown at 48.9% a year over 3 years.

🟢 EBITDA Margin has risen from 11.9% to 20.3% over 3 years (+8.4 pts).

🟢 PAT (Net Profit) has grown at 58.9% a year over 3 years.

🟢 ROE has risen from 14.9% to 26.5% over 3 years (+11.7 pts).

🟢 ROCE has risen from 21.4% to 35.1% over 3 years (+13.7 pts).

🔴 Total Debt has grown at 20.9% a year over 3 years.

🟢 Free Cash Flow has grown at 45.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹354 Cr

Total Liabilities

₹191 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹29 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

1.3%

Insider Holding

75.8%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%

Recent News

6 general

Technocraft Ventures Ltd. IPO

The Economic Times, 13 Oct

Technocraft Ventures Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

Compare with

Equitymaster, 15 Oct

Technocraft Ventures shares make strong debut, list at 34% premium

The Economic Times, 14 Aug

Technocraft Ventures makes strong debut, shares list at 34% premium

Business Standard, 14 Aug

Technocraft Ventures IPO Review: GMP, Subscription, Financials, Valuation & Should You Apply?

India Infoline, 11 Aug

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑