Tega Industries Limited

Industrials — Specialty Industrial Machinery · NSE

₹1,924.00+₹35.30 (+1.87%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Tega Industries Limited designs, manufactures, and installs process equipment and accessories for the mineral processing, mining, and material handling industries. It offers a range of grinding mill liners, such as DynaPrime, DynaSteel, DynaPulp, and DynaWear.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees655

Annual revenue₹1,670 Cr

How does it make money?

Turns over ₹1,670 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 655 employees supports ₹2.55 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin17.6%

Net margin8.5%

Revenue / employee₹2.55 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.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Little sign of one

Returns on capital of 6.2% 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.

ROCE6.2%

ROE4.2%

Peer median ROE17.1%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 21.6% and earnings to grow about 41.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.6%

Est. earnings growth+41.4%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +40% while net margin moved -45% 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+40%

Margin effect-45%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 4.2% is weak
✗ ROE has fallen by 13.4 points over the period

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

26/ 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.

Historical Valuation

Current P/E

507.7x

3Y Median

56.6x

40 monthly readings · mean 57.3x · range 33.0x–102.6x

Sector Median

66.2x

median of 4 sector peers

⚠️Current valuation is approximately 797% above its 3y median of 56.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 667% above the peer median of 66.2x.

vs. its own history

Expensive

56.6x median over 40 months · +797%

vs. sector peers

Expensive

66.2x median of 4 peers · +667%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

507.7x

P/B

4.24x

EV/EBITDA

46.5x

PEG

—

Dividend Yield

0.10%

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 148% over 3 years.
Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 23.4% to 17.6% over 3 years.
Return on equity is falling
ROE has dropped from 17.5% to 4.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.3% to 6.2% — often a sign of competition or overexpansion.
Valuation above its historical average
At 507.7x the stock trades 797% above its own median of 56.6x.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.8 points, from 23.4% to 17.6%.
🟡Profit is decliningFinancial
Net profit is down 22% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹214 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 23.4% to 17.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 797% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 17.5% to 4.2%. 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
Small 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 9% a year✓ 11.8% CAGR
Latest reported year was 384.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹214 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹14,455 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

507.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.24x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.79

Profitable

Profitable on a per-share basis

ROE

4.2%

Weak

Weak capital efficiency

ROCE

6.2%

Weak

Low return on total capital employed

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

384.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-28.7%

Falling

Profits are shrinking

Dividend Yield

0.10%

Modest

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

Free Cash Flow

₹214 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,924

P/E (Forward)

20.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

10.0%

Average

Average margins

Net Margin

0.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.72

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2024.7 / 1809.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,194 Cr	₹1,464 Cr	₹1,612 Cr	₹1,670 Cr	+11.8%
EBITDA	₹280 Cr	₹325 Cr	₹370 Cr	₹294 Cr	+1.7%
EBITDA Margin	23.4%	22.2%	22.9%	17.6%	—
PAT (Net Profit)	₹184 Cr	₹194 Cr	₹200 Cr	₹143 Cr	-8.1%
EPS	₹27.62	₹29.17	₹30.08	₹20.54	-9.4%
ROE	17.5%	16.3%	14.3%	4.2%	—
ROCE	20.3%	20.2%	18.3%	6.2%	—
Total Debt	₹361 Cr	₹308 Cr	₹330 Cr	₹398 Cr	+3.4%
Free Cash Flow	₹86 Cr	₹197 Cr	₹25 Cr	₹214 Cr	+35.4%

🟢 Revenue has grown at 11.8% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.7% a year).

🔴 EBITDA Margin has fallen from 23.4% to 17.6% over 3 years (-5.8 pts).

🔴 PAT (Net Profit) has shrunk at 8.1% a year over 3 years.

🔴 EPS has shrunk at 9.4% a year over 3 years.

🔴 ROE has fallen from 17.5% to 4.2% over 3 years (-13.4 pts).

🔴 ROCE has fallen from 20.3% to 6.2% over 3 years (-14.2 pts).

🔴 Total Debt has grown at 3.4% a year over 3 years.

🟢 Free Cash Flow has grown at 35.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,315 Cr

Total Liabilities

₹907 Cr

Total Debt

₹398 Cr

Cash & Equivalents

₹1,164 Cr

Operating Cash Flow

₹350 Cr

Capex

-₹136 Cr

Shareholding (proxy)

Institutional Holding

17.8%

Insider Holding

67.0%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹1,798.75

-6.5% vs CMP

Target Range

₹1,740 – ₹1,880

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 positive1 mixed4 general

Tega Industries (NSEI:TEGA) Stock Forecast & Analyst Predictions

Simply Wall Street, 08 OctAnalyst view

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

Tega Industries vs Nifty 50: 1Y Return -0.50% vs -10.93%

Univest, 12 Oct

Trade Spotlight: How should you trade Astral, Tega Industries, Indus Towers, Aadhar Housing Finance,...

Moneycontrol.com, 16 Oct

Tega Industries subsidiary gets Calcutta HC relief on ₹13.79 crore tax demand

scanx.trade, 16 Oct

Tega Industries shares rally 11% to hit 52-week high as subsidiary bags order worth ₹126 crore

Upstox, 21 SeptOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Tega Industries - eClerx Services among 4 stocks that closed crossing above VWAP

The Economic Times, 14 Oct

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong17.8/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak4.6/15

🔴ValuationDemanding4.9/15

🟢RiskLow6.7/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 9% a year11.8% CAGR
✓EBITDA margin holds above 16%17.6%
✓Free cash flow remains positive₹214 Cr
✓Debt / EBITDA stays below 2x1.4x
✗ROCE stays above 8%6.2%