Small Engineering & Capital Goods
Market Cap
₹14,138 ₹14,138 Cr.
P/E
57.59
PEG
3.62
PEG = P/E ÷ 5yr Forward EPS CAGR
5yr Forward EPS CAGR Thesis - Base Case

- Revenue thesis hinges on conversion of the ₹1,282 Mn nuclear order book, which depends on NPCIL test bed qualification.- Bull case requires first pump qualification by Q2 FY26, Kudankulam ramp-up, and faster export growth.
- Bear case is triggered by further nuclear delays beyond 12 months, a commodity price spike, and KUSUM 2.0 policy uncertainty stalling solar growth.

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5Y Revenue & EBITDA Estimates
KEY TRIGGERS TO WATCH
  • Revenue thesis hinges on conversion of the ₹1,282 Mn nuclear order book, which depends on NPCIL test bed qualification.
  • Bull case requires first pump qualification by Q2 FY26, Kudankulam ramp-up, and faster export growth.
  • Bear case is triggered by further nuclear delays beyond 12 months, a commodity price spike, and KUSUM 2.0 policy uncertainty stalling solar growth.
Bear : 4.5% CAGR ₹4,820 Mn
Base: 13.3% CAGR ₹7,236 Mn
Bull: 19.4% CAGR ₹9,363 Mn
Management Credibility Report
TRACK RECORD
  • Management reliably over-delivers on internally controlled targets such as ESG, solar revenue, capex, and EBITDA margin.
  • Execution credibility breaks down on externally dependent items, especially nuclear delivery timelines, which have slipped more than three years.
  • Strategic mix targets (SupremeServ, exports, gross margin) are consistently missed due to product mix dilution from lower-margin engineered business.
Met : 8
Progress: 1
Missed : 8
Risk Probe Report
WORST-CASE SCENARIO
  • Debt-free and consistently profitable, but operating cash flow persistently trails EBITDA due to working capital absorption.
  • Working capital build-up, led by receivables and inventory growing faster than revenue, is the key forensic concern.
  • The most severe stress scenario is a steel/special-alloy price surge, which could compress EBITDA margin to near breakeven if not passed through.
High Risk : 0
Medium Risk : 3
Low Risk : 14
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