Yuken India Limited

Industrials — Specialty Industrial Machinery · NSE

₹1,164.90+₹26.40 (+2.32%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

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: The business is earning a fairly low return on the money invested in it, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Yuken India Limited, together with its subsidiaries, engages in the manufacture and sale of oil hydraulic equipment in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees460

Annual revenue₹458 Cr

How does it make money?

Turns over ₹458 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 460 employees supports ₹99.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹99.5 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.7% 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.

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +23% while net margin moved +23% 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+23%

Margin effect+23%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 7.7% is below 10% — capital is not working hard
✗ ROCE has fallen by 3.8 points — returns are eroding
✗ EBITDA margin of 11.9% is thin — little cushion if costs rise
✗ Net margin of 3.2% is slim
• Revenue has compounded at 7.2% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

25/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

100.8x

3Y Median

77.0x

40 monthly readings · mean 78.2x · range 31.4x–162.5x

Sector Median

66.2x

median of 4 sector peers

⚠️Current valuation is approximately 31% above its 3y median of 77.0x. 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 52% above the peer median of 66.2x.

vs. its own history

Expensive

77.0x median over 40 months · +31%

vs. sector peers

Expensive

66.2x median of 4 peers · +52%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

30.7x

PEG

6.81

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 9.7% to 11.9% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 11.5% to 7.7% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.7% to 11.9%. 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 31% 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.
Growth barely outpaces inflation
Revenue compounding at 7.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 10%✓ 11.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹42 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 5% a year✓ 7.2% CAGR
Latest reported year was 28.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

6 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹1,582 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

100.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.24x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.56

Profitable

Profitable on a per-share basis

ROE

3.9%

Weak

Weak capital efficiency

ROCE

7.7%

Weak

Low return on total capital employed

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

28.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

23.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.13%

Modest

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

Free Cash Flow

-₹42 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.8%

Average

Average margins

Net Margin

3.2%

Average

Average bottom-line conversion

Current Ratio

1.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1140.3 / 1028.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹371 Cr	₹423 Cr	₹455 Cr	₹458 Cr	+7.2%
EBITDA	₹36 Cr	₹50 Cr	₹60 Cr	₹55 Cr	+14.8%
EBITDA Margin	9.7%	11.8%	13.1%	11.9%	—
PAT (Net Profit)	₹10 Cr	₹19 Cr	₹25 Cr	₹14 Cr	+14.8%
EPS	₹7.97	₹14.75	₹18.94	₹10.81	+10.7%
ROE	4.8%	6.7%	8.2%	3.9%	—
ROCE	11.5%	11.8%	12.7%	7.7%	—
Total Debt	₹119 Cr	₹78 Cr	₹99 Cr	₹115 Cr	-1.3%
Free Cash Flow	-₹9 Cr	-₹5 Cr	-₹5 Cr	-₹42 Cr	—

🟢 Revenue has grown at 7.2% a year over 3 years.

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

🟢 EBITDA Margin has risen from 9.7% to 11.9% over 3 years (+2.2 pts).

🟢 PAT (Net Profit) has grown at 14.8% a year over 3 years.

🟢 EPS has grown at 10.7% a year over 3 years.

🟡 ROE has held roughly flat at 3.9% over 3 years.

🔴 ROCE has fallen from 11.5% to 7.7% over 3 years (-3.8 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.3% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹635 Cr

Total Liabilities

₹262 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

₹41 Cr

Capex

-₹83 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.9%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

28 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

2 mixed4 general

Yuken India (YUKEN) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Yuken India Share Price news: price rise and fundamentals

Univest, 06 OctPrice 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.

Yuken India appoints Ganesh S S as Head of Human Resources

scanx.trade, 13 Oct

DISAQ Stock Price and Chart — NSE:DISAQ

TradingView, 20 Apr

Yuken India Ltd. Share Price Jumps; Fundamentals Checked

Univest, 18 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.

Yuken India appoints Tanaka as Whole-time Director effective Oct 1

scanx.trade, 11 Aug

Watch Items

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

DalalBaazaar Thesis

MiddlingFinancial Health · Growth

WeakBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

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