Credit rating
Credit Rating- Revision 24 Sep - CRISIL upgraded Megatherm Induction’s Rs.105 crore bank facilities to BBB+/Stable and A2.
Source: Nse
Megatherm Induction Ltd. (MEGATHERM)
SME CapIndustrials stocks · SME cap · NSE
Megatherm Induction Ltd. manufactures induction heating & melting products, transformers, and allied steel plant equipment like LRF, CCM, FES, and EAF. It provides turnkey solutions and after-sales services, serving steel, auto ancillaries, railways, and DI pipe producers globally with 3000+ installations in 52+ countries.
Data qualityFresh enough for analysisQuote updated 19 Oct, 03:31 pm ISTDetails
Quote19 Oct, 03:31 pm IST
Base fundamentals20 Oct 2026 · screener
Latest result01 Jun, 07:55 pm IST
Score20 Oct, 04:19 pm IST · v4.3-runtime-valuation
Tags24 Apr 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · Industrials P/E 26.2 (n=537)
Technical timing lens
Trend score and candlestick chart
70Bullishfull bull SMA stack · SMA20 +9.2% / mo · MACD +
Stock trend: 83
Sector RS: 50
Sector 3M: -6.3% vs Nifty 500 -5.6%
Industrials FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
MEGATHERMD candles · FIT view-7.9%Latest close ₹259.70 on 2026-10-19
Bar
-5.6%
RSI
56
MACD hist
0.83
52W pos
75%
2026-10-19O ₹275.00H ₹279.00L ₹252.20C ₹259.70Vol 16,400 sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
MEGATHERMNifty India ManufacturingNifty 500
- MEGATHERM
- +15.5%
- Nifty 500
- -5.6%
- Nifty India Manufacturing
- -5.8%
- Vs Nifty 500
- +21.0 pp
Chart stats
19 Oct 2026- From 52W high
- -10.4%
- 52W range position
- 75%
- ATR (14)
- 5.5%
- Volume vs 20D
- 0.93x
- Avg traded value
- ₹0.5 Cr
- 20D price channel
- ₹238.1 - ₹282
₹290
₹170 - ₹290
₹14.3
Latest completed session
20-session average
48.3% annualized volatility
Research snapshot
What the evidence says now
Mixed fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend supports entry, and recent execution is mixed.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · FAIR VALUE59
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Bad2
Revenue +17.6% · PAT -7.7% YoY
Technical
Bullish70
Price trend and sector-relative-strength timing.
Valuation
Legacy model+47.4%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence74
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 31 Mar 2026
Bad · 2/100PAT -8% YoY · margin compression · Rev +18% YoY · +18% QoQ
Filed 31 Mar 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹187 Cr | +17.6% | +17.6% |
| EBITDA | ₹18 Cr | NDF | +12.5% |
| Operating margin | 9.0% | NDF | -100 bps |
| PAT | ₹12 Cr | -7.7% | +0.0% |
| PAT margin | 6.4% | NDF | -113 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 20.20
- P/B
- 2.96
- EV/EBITDA
- 14.16
- Market Cap
- 489.00Cr
Profitability
- ROE
- 15.80%
- ROCE
- 18.10%
- ROA
- 6.98%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 26.00%
- EPS 5Y
- 51.00%
- Revenue 3Y
- 9.00%
- EPS 3Y
- 20.00%
Balance Sheet
- Debt/Equity
- 0.30
- Interest Coverage
- 8.25×
- Altman Z
- 3.73
- Book Value
- 87.80
Cash Flow
- FCF Yield
- 3.48%
- FCF Positive Y
- 5/5
- OCF
- 5.00 Cr
- EPS TTM
- 12.57
Shareholding
- Promoter Hold
- 71.89%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 75%
Financial History
Updated 18/10/2026
Revenue
₹ CrLatest: 187+17.6% vs prev
Net Profit
₹ CrLatest: 12.0+0.0% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 56.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~8.5% over last month) — short-term momentum positive.
- RSI(14) at 56 — sideways, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 10% off 52W high · 53% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
69
RS percentile
Stage 2 UptrendRecent S2
1M return
+2.3%
3M return
+15.5%
6M return
+1.0%
1Y return
+3.5%
RS 1D
-1
RS 20D
+4
Sector rank
#2
Industry rank
#19
Stage evidence
- Price is 13.5% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +2.8%.
- Both 3-month and 6-month returns are positive.
50-DMA
price above
200-DMA
price above
S2 entered
08 Oct 2026
S2 age
8 trading sessions
Sector
leading
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
262 observations
19 Oct 2026Value 94.33-3.53%
RS vs Nifty 50094
Valuation & peers
U-Score 59 · legacy U-Score band FAIR VALUE · valuation evidence and comparable companies
Valuation & peers
U-Score 59 · legacy U-Score band FAIR VALUE · valuation evidence and comparable companies
Financial Turnaround
Fundamental score breakdown
U band · FAIR VALUEValuation10/30
Growth20/25
Quality11/20
Balance Sheet10/15
Cash Flow6/10
Piotroski
8/9 (+5)
Penalties
-3
Raw sum
59
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
59/100 · legacy band FAIR VALUE
Positive drivers
- FCF yield is supportive at 3.5%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 47.4%.
Main drags
- Penalty bucket subtracts 3 points.
- Valuation is weaker at 10/30; verify the latest quarterly trend.
- Quality is weaker at 11/20; verify the latest quarterly trend.
Sector valuation model
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Primary lens
PE, EV/EBITDA, margin of safety, and FCF yield together.
Secondary checks
ROE/ROCE, growth, cash conversion, leverage, promoter risk.
Main risk check
One cheap metric is not enough if quality or cash flow is weak.
PE
20.2
PB
3.0
EV/EBITDA
14.2
ROE
15.8%
ROCE
18.1%
FCF Yield
3.5%
Debt/Equity
0.3
MoS
+47.4%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 20 Oct 2026
v4.3-runtime-valuation
Final score
59
Previous: 59
Legacy U-Score band
FAIR VALUE
Previous: FAIR VALUE
Margin of safety
+47.4%
Previous: +47.4%
Score history
12 stored score snapshots. Latest stored move: -1 points.
20 Oct 2026
v4.3-runtime-valuation
60
60
60
60
60
60
60
60
60
60
60
59
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹157.58
-64.8% MoS
Growth-justified P/E
39.3
Growth-justified Value
₹494
+47.4% MoS
PEG
0.52
Comparable companies
Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
TAURIAN
SME
Taurian MPS Ltd.
Industrial Machinery
match 61
56
33.9
26.7%
+14%
FAIR VALUE
UHTL
SME
United Heat Transfer Ltd.
Industrial Machinery
match 58
31
80.4
8.2%
-121%
OVERVALUED
EEPL
SME
Eppeltone Engineers Ltd.
Industrial Machinery
match 55
53
15.1
18.8%
+64%
FAIR VALUE
AMEYA
SME
Ameya Precision Engineers Ltd.
Industrial Machinery
match 54
50
24.3
18.0%
+40%
FAIR VALUE
SCML
SME
Sharp Chucks and Machines Ltd.
Industrial Machinery
match 54
52
13.2
9.6%
+68%
FAIR VALUE
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-08-20T07:21:34.142Z
Management commentary snapshot
Megatherm Induction reported modest FY26 revenue growth of 9% YoY to Rs. 3,528.3 Mn, with PAT up 11.15% YoY to Rs. 236.8 Mn. H2FY26 saw EBITDA decline 10.56% YoY to Rs. 196.8 Mn due to increased HR and marketing costs, impacting sequential profitability.
The company delivered modest FY26 growth, but H2 profitability was impacted by strategic investments in talent and marketing. Strong order book and new transformer capacity provide future revenue visibility, though margin expansion from efficiencies in FY27 needs close monitoring. Global expansion efforts are a positive.
Growth engines
Solar Transformers (IDT)
Successful CPRI testing of 13.2 MVA IDT, targeting Rs. 110 Cr revenue by FY27, aligned with India's 500 GW renewable target.
Global Expansion (Induction)
US business transitioned to incorporated structure, on-ground presence in Latin America, expanding to UK, Europe, Middle East, Africa & Southeast Asia.
Product Diversification
Entered Pipe & Tube sector via JV, validated Dual-Track / Tri-Track power supplies for foundries. Commissioned CCM, LRF, FES.
Green Furnace Technology
Gained market share due to energy efficiency; plans to expand in West & South India.
Capacity and execution
New Transformer Facility
Largest in Eastern India, 2,000 MVA capacity, expandable to 3,000 MVA with minimal investment. Commissioned in Q1 FY26.
Solar Transformer Capacity
Targeting 150-160 MVA/month by H2 FY27.
4th Manufacturing Facility
Construction initiated to support growing transformer demand.
Tailwinds
Indian Renewable Market Growth
Expected to grow from 237.17 GW in 2025 to 500.23 GW by 2030 (CAGR 16.10%).
Indian Transformer Market Growth
Expected to grow from USD 3.97 billion in 2023 to USD 8.41 billion by 2030 (CAGR 10.84%).
Indian Foundry Market Growth
Expected to grow from USD 25.57 billion in 2025 to USD 42.61 billion by 2030 (CAGR 11.13%).
Government Initiatives for Steel
Policy initiatives like Make In India, Atma Nirbhar Bharat, PLI scheme, and $1.4 trillion infrastructure spending by 2025.
Risk radar
Increased Operating Costs
Employee benefits expense up 23% YoY and other expenses (incl. marketing) up 17% YoY in FY26, impacting H2 EBITDA.
Working Capital Management
Inventories increased significantly from Rs. 970.18 Mn in FY25 to Rs. 1,266.98 Mn in FY26.
Execution Risk for New Capacities
Successful ramp-up and execution of the new transformer capacity and 4th manufacturing facility are crucial for revenue realization.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
Annual YoY comparison provides a holistic view of the company's growth trajectory. However, sequential (HoH) comparison for H2FY26 is critical to assess the impact of recent investments in HR and marketing on operational efficiency and profitability, especially with new capacities coming online.
Sector KPIs management disclosed
Induction Business Order Book
~Rs. 250 Cr providing strong carry-forward into FY27.
Transformer Order Inflow
Secured 400+ MVA orders, with deliveries commencing March onwards. Secured Rs. 37.9 Cr transformer orders (5 domestic orders).
FY26 EBITDA Margin
FY26 EBITDA Margin stood at 11.3%. H2FY26 EBITDA Margin was 10.40%.
Employee Benefit Expense Growth
Employee Benefit Expense increased by 23.22% YoY in FY26.
Management forward view
FY27 Revenue Visibility
Strong execution momentum in H2 supports FY27 revenue visibility of Rs. 400+ Cr for Induction business.
FY27 Margin Expansion
FY27 is expected to leverage efficiencies for margin expansion, despite increased HR and marketing costs in FY26.
Near Term Growth Target (up to FY28)
Targeted Revenue Growth: ~20-25% CAGR. Targeted EBITDA Growth: ~25% CAGR.
Medium Term Growth Target (up to FY32)
Targeted Revenue Growth: ~20% CAGR (nearly 3x by FY32). Targeted EBITDA Growth: ~25% CAGR (nearly 4x by FY32).
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 10.40% (H2FY26) | Improvement in FY27 as efficiencies from investments are leveraged. |
| Transformer Order Conversion/Execution | Rs. 37.9 Cr orders, 400+ MVA orders | Timely delivery and revenue recognition from new transformer orders and ramp-up of new capacity. |
| Working Capital (Inventories) | Rs. 1,266.98 Mn (FY26) | Stabilization or reduction in inventory levels relative to revenue growth. |
| Global Expansion Traction | JV in North America, representatives in LatAm, office in UK | Concrete order inflows and revenue contribution from international markets. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
74Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 75th percentile of the scored universe and 73rd percentile within Industrials. Main check: financial discipline is weak at 50/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
10 docs text-extracted · 4 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
75th percentile
overall median 67 · Industrials: 73rd pctile, median 68 · SME: 93rd pctile, median 64
Evidence depth
Financial-only
10 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
86
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
89
strong · leverage and solvency
Discipline
50
watch · capital discipline
Results
63
acceptable · quarterly consistency
Trust positives
- ▸Promoter holding is 71.9%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 4.7%.
- ▸5 years of positive FCF.
Trust risks
- ▸ROCE trend is -3.9%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Megatherm Induction Ltd.
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Investor presentationJun 2026
Jun 2026 · PPT
Source: Nse
Concall transcriptJun 2026
Jun 2026 · Transcript
Source: Nse
Credit ratingJun 2026
Jun 2026 · Credit Rating 4 June 2026 - CRISIL reaffirmed Megatherm Induction’s ₹105 crore bank facilities at BBB/Stable and A3+.
Source: Nse
Annual reportMar 2026
Mar 2026 · Annual Report 2026
Source: Nse
Annual reportMar 2026
Aug 2026 · Updates 7 Aug - Annual report FY2025-26 web-link shared; 16th AGM scheduled for 29 August 2026 via VC/OAVM.
Source: Nse
Investor presentationNov 2025
Nov 2025 · PPT
Source: Nse
Concall transcriptNov 2025
Nov 2025 · Transcript
Source: Nse
Investor presentationJun 2025
Jun 2025 · PPT
Source: Nse
Concall transcriptJun 2025
Jun 2025 · Transcript
Source: Nse
Annual reportMar 2025
Mar 2025 · Annual Report 2025
Source: Nse
Investor presentationNov 2024
Nov 2024 · PPT
Source: Nse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.