Yash Highvoltage Ltd.

Industrials — Electrical Equipment & Parts · BSE

₹1,135.00−₹35.65 (−3.05%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, 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, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Yash Highvoltage Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Yash Highvoltage Ltd. manufactures and sells high voltage and high current transformer bushings in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees208

Annual revenue₹235 Cr

How does it make money?

Turns over ₹235 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 208 employees supports ₹1.13 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.13 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 27.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.5% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 48.4% and earnings to grow about 51.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+48.4%

Est. earnings growth+51.0%

Analysts1

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 +161% while net margin moved +25% 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+161%

Margin effect+25%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 87.6x is demanding — it needs sustained high growth to justify
✗ P/E is 58% above its own historical median of 55.6x — expensive by its own standards
✗ P/B of 17.61x is a steep premium to book

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

34/ 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

87.6x

2Y Median

55.6x

24 monthly readings · mean 68.5x · range 27.9x–128.6x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 58% above its 2y median of 55.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 88.8x.

vs. its own history

Expensive

55.6x median over 24 months · +58%

vs. sector peers

Fair

88.8x median of 3 peers · -1%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

54.6x

PEG

1.81

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 20.8% to 26.6% over 3 years.
High return on capital employed
ROCE of 27.5% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 35.6% to 20.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 45.4% to 27.5% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 383% over 3 years, from ₹8 Cr to ₹38 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 306% against revenue up 161% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹50 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.5% 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 20.8% to 26.6%. 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?

The price already assumes success
The stock trades 58% 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 35.6% to 20.3%. 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
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 28% a year✓ 37.6% CAGR
Latest reported year was 45.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 25%✓ 26.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹50 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 24%✓ 27.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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 · 2 neutral · 3 weak

Market Cap

₹3,392 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

87.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

17.61x

Rich

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

EPS (TTM)

₹12.95

Profitable

Profitable on a per-share basis

ROE

22.5%

Strong

Strong capital efficiency

ROCE

27.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

45.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

38.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.12%

Modest

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

Free Cash Flow

-₹56 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

48.5x

Improving

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

ROA

13.4%

Good

Assets are working hard

Operating Margin

23.3%

Good

Healthy core-business profitability

Net Margin

15.9%

Good

Strong bottom-line conversion

Current Ratio

1.96

Comfortable

Healthy short-term liquidity

52W Range Position

86%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1139.7 / 1024.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹90 Cr	₹108 Cr	₹150 Cr	₹235 Cr	+37.6%
EBITDA	₹19 Cr	₹21 Cr	₹35 Cr	₹62 Cr	+49.2%
EBITDA Margin	20.8%	19.0%	23.1%	26.6%	—
PAT (Net Profit)	₹11 Cr	₹12 Cr	₹21 Cr	₹37 Cr	+48.4%
EPS	₹4	₹5.57	₹8.94	—	—
ROE	35.6%	29.5%	14.5%	20.3%	—
ROCE	45.4%	38.8%	20.3%	27.5%	—
Total Debt	₹8 Cr	₹7 Cr	₹23 Cr	₹38 Cr	+69.0%
Free Cash Flow	₹5 Cr	₹1 Cr	-₹29 Cr	-₹50 Cr	—

🟢 Revenue has grown at 37.6% a year over 3 years.

🟢 EBITDA has grown at 49.2% a year over 3 years.

🟢 EBITDA Margin has risen from 20.8% to 26.6% over 3 years (+5.7 pts).

🟢 PAT (Net Profit) has grown at 48.4% a year over 3 years.

🔴 ROE has fallen from 35.6% to 20.3% over 3 years (-15.3 pts).

🔴 ROCE has fallen from 45.4% to 27.5% over 3 years (-17.9 pts).

🔴 Total Debt has grown at 69.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹50 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹264 Cr

Total Liabilities

₹80 Cr

Cash & Equivalents

₹20 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹59 Cr

Shareholding (proxy)

Institutional Holding

4.1%

Insider Holding

64.3%

Corporate Actions

Dividend Rate

₹1.4

Ex-Dividend Date

27 Aug 2026

Analyst Consensus

Target Price (Mean)

₹1,200

+5.7% vs CMP

Target Range

₹1,200 – ₹1,200

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 mixed5 general

Yash Highvoltage signs 36-month US sales representation deal with ENSALES

scanx.trade, 15 Oct

Yash Highvoltage Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

SME stock Yash Highvoltage shares soar over 12% after raising Rs 151 crore via preferential issue

The Economic Times, 25 JunPrice 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.

Yash HighVoltage board approves ₹151 crore fundraise via shares and warrants issuance

Sahi, 22 Jun

Yash Highvoltage up-scales RIP bushings plan, approves preferential equity issue

T&D India, 23 Jun

Broker’s Call: Yash Highvoltage (Buy)

BusinessLine, 08 Jun

Watch Items

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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑