Thejo Engineering Limited

Industrials — Specialty Industrial Machinery · NSE

₹1,960.00−₹4.00 (−0.20%)

DalalBaazaar Score

65 / 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, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Thejo Engineering Limited designs, develops, manufactures, and supplies rubber and polyurethane based engineering products for bulk material handling systems, mineral processing, and corrosion protection applications in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees1,761

Annual revenue₹631 Cr

How does it make money?

Turns over ₹631 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 1,761 employees supports ₹35.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin13.9%

Net margin7.8%

Revenue / employee₹35.8 lakh

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?Some evidence

ROCE of 16.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE16.9%

ROE13.9%

Peer median ROE17.1%

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 +33% while net margin moved +14% 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+33%

Margin effect+14%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 37.7x already prices in growth
• P/E is close to its own historical median of 43.2x
✗ P/B of 6.00x is a steep premium to book

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

49/ 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

37.7x

3Y Median

43.2x

40 monthly readings · mean 51.5x · range 31.7x–108.0x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 13% below its 3y median of 43.2x. 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 43% below the peer median of 66.2x.

vs. its own history

Fair

43.2x median over 40 months · -13%

vs. sector peers

Cheap

66.2x median of 4 peers · -43%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

37.7x

P/B

6.00x

EV/EBITDA

24.2x

PEG

2.52

Dividend Yield

0.26%

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 60% against revenue growth of 33% — customers are taking longer to pay.

Red Flags

2 items require attention · 2 watch

🟡Receivables growing faster than salesFinancial
Receivables up 60% against revenue up 33% — sales are being booked faster than they are collected.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.0%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 43% 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 ₹4 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?

Sales are being booked faster than collected
Receivables are up 60% against revenue up 33%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1Revenue growth stays above 8% a year✓ 10.0% CAGR
Latest reported year was 31.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹4 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 14%✓ 16.9%
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 · 4 neutral · 1 weak

Market Cap

₹2,126 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

37.7x

Fair

Fairly valued against the generic band

P/B Ratio

6.00x

Rich

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

EPS (TTM)

₹51.94

Profitable

Profitable on a per-share basis

ROE

13.9%

Moderate

Moderate capital efficiency

ROCE

16.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

31.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

71.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.26%

Modest

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

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,960

Operating Margin

11.2%

Average

Average margins

Net Margin

8.3%

Average

Average bottom-line conversion

Current Ratio

2.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

61%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2096.8 / 2110.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

23.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹474 Cr	₹559 Cr	₹551 Cr	₹631 Cr	+10.0%
EBITDA	₹61 Cr	₹101 Cr	₹91 Cr	₹88 Cr	+12.9%
EBITDA Margin	12.9%	18.0%	16.6%	13.9%	—
PAT (Net Profit)	₹32 Cr	₹56 Cr	₹50 Cr	₹49 Cr	+15.0%
EPS	₹30	₹51.43	₹46.04	₹45.4	+14.8%
ROE	16.5%	22.2%	16.8%	13.9%	—
ROCE	18.6%	26.1%	20.7%	16.9%	—
Total Debt	₹45 Cr	₹43 Cr	₹30 Cr	₹41 Cr	-3.4%
Free Cash Flow	₹9 Cr	₹29 Cr	₹32 Cr	₹4 Cr	-23.2%

🟢 Revenue has grown at 10.0% a year over 3 years.

🟢 EBITDA has grown at 12.9% a year over 3 years.

🟢 EBITDA Margin has risen from 12.9% to 13.9% over 3 years (+1.0 pts).

🟢 PAT (Net Profit) has grown at 15.0% a year over 3 years.

🟢 EPS has grown at 14.8% a year over 3 years.

🔴 ROE has fallen from 16.5% to 13.9% over 3 years (-2.6 pts).

🔴 ROCE has fallen from 18.6% to 16.9% over 3 years (-1.6 pts).

🟢 Total Debt has shrunk at 3.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 23.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹549 Cr

Total Liabilities

₹170 Cr

Total Debt

₹41 Cr

Cash & Equivalents

₹35 Cr

Operating Cash Flow

₹39 Cr

Capex

-₹35 Cr

Shareholding (proxy)

Institutional Holding

0.6%

Insider Holding

0.0%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

18 Aug 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

Compare TRF with

Equitymaster, 16 Oct

Thejo Engineering Share Price Target 2027 to 2030: Analyst Outloo

Univest, 14 AugAnalyst view

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

Thejo Engineering Ltd (THEJO.NS) Rises 0.78%: Stock Holds Above Support as Resistance Awaits at ₹2,180 - Rounding Bottom

https://www.siam.in/, 31 Aug

Thejo Engineering FY26 revenue rises 14.4% to ₹63,209 lakh

scanx.trade, 28 MayResults

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

Thejo Engineering - IRFC, NBCC and 4 other stocks flash bullish signals, indicating possible uptrend

The Economic Times, 29 DecAnalyst view

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

Compare with

Equitymaster, 16 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong13.3/20

🟢Financial HealthStrong17.8/20

🟢GrowthStrong13.4/20

🟡ProfitabilityModerate8.3/15

🔴ValuationDemanding6.5/15

🟡RiskModerate5.2/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 8% a year10.0% CAGR
✓EBITDA margin holds above 12%13.9%
✓Free cash flow remains positive₹4 Cr
✓Debt / EBITDA stays below 2x0.5x
✓ROCE stays above 14%16.9%