Marine Electricals (India) Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Marine Electricals (India) Ltd trades at ₹419, in a confirmed uptrend and 17 weeks into that stage. That is +58.1% against its own 200-day average. It sits at 95% of a 52-week range of ₹161 to ₹432. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 7 straight weeks.

Today the stock is in a confirmed uptrend — week 17 of stage 2, confirmed. At ₹419 it trades +58.1% versus its 200-day average and sits at 95% of its 52-week range (₹161–₹432).

Against the market, two honest reads. Cumulative: over the last 7.9 years the stock moved +3,042% while the NIFTY 500 moved +161% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 7 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Marine Electricals (India) Ltd's story is not scored yet against the markers our research file set on 14 June 2026. Where it sits in its own cycle: Not stated in the research file. Still open: Trailing PE 65th %ile is a value-trap surface read; normalized PE hits 87th %ile — expensive at mid-cycle margins.

What is proven. See the research file

What is not proven yet. Trailing PE 65th %ile is a value-trap surface read; normalized PE hits 87th %ile — expensive at mid-cycle margins.

🚨 Layer 1 read, 27 June 2026 — DROP. Defence-electrical micro-cap growing nicely but expensive on peak margins, the most extended in the batch, and burning cash — bottom rank. Marine's revenue and EPS are genuinely growing (PAT +53.8% to ₹58.6 Cr, EPS 0.28→1.32 over 12q) on a defence-capex order book, but the trailing 63.4x PE is RICH and the normalized PE is 77.3x at the 87th percentile (⚠ peak-margin model). The disqualifier for any rank-up is cash: 3-year OCF/PAT is 0.26 with FY26 operating cash flow turning NEGATIVE and debtors at 178 days, and the whole read sits on a synthetic web-fallback timeline (no concall, all claims inferred) — so it is a low-conviction WATCH, not a setup.

What would change Layer 1’s mind. OPM holding above 8% AND OCF/PAT turning positive (>0.3) for FY27 with debtor days falling back below 150 — that would confirm the margins are durable and the cash deterioration was a one-off Navy-receivable timing issue, lifting it off WATCH; conversely OPM below 8% for two quarters or OCF staying negative confirms the peak-margin value trap.

🚨 What the surface reading misses. The surface reading is: OCF negative in FY26 suggests the business is not generating cash from operations — weak cash quality The research reads it further: The decomposition via cash_decomposition reveals the mechanism: ΔWC = +₹90 Cr in FY26 absorbed the ₹74 Cr of cash profit (PAT ₹59 Cr + depreciation ₹15 Cr). The driver within WC was debtors rising from 157 to 178 days (₹11 Cr incremental receivables per day × revenue scale), while inventory fell 52 days (positive) and payables compressed 24 days (negative). The WC build is project-receivables driven — not inventory build or channel stuffing. In FY25 OCF recovered to ₹55 Cr (OCF/PAT 1.45x) when WC normalized, confirming the mechanism is timing of collections, not structural leakage.

Sources: our stock research file (14 June 2026) · quarterly results through Jun 26. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Marine Electricals (India) Ltd reported ₹259 Cr of revenue in the Jun 26 quarter, +55.1% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 13.4% a year. The last full year, FY26, came in at ₹877 Cr. The last four reported quarters add to ₹968 Cr.

Why this happened. Revenue has grown from ₹251 Cr (FY21) to ₹877 Cr (FY26), a 5-year CAGR of approximately 28%. Q4 FY26 achieved ₹277.48 Cr — the highest quarterly revenue in the company's history. Year-on-year revenue growth of 14.33% in FY26 and PAT growth of 53.82% demonstrate operating leverage starting to manifest as scale increases, though PAT growth has outpaced revenue due to margin expansion that may not be permanent.

FY26 revenue came in at ₹877 Cr (+14.3% on the year), capping 10 years at 13.4% compound. The latest quarter (Jun 26) printed ₹259 Cr, +55.1% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +23.6% growth against the decade's 13.4% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +21.6% over the last 4 quarters against +21.2%/yr over the last 8 — stabilising; TTM profit +50.0% vs +50.9%/yr — stabilising.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Marine Electricals (India) Ltd's operating margin is 11.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 15 fiscal years the operating margin has ranged 6.0% to 11.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 11.0%, +1.0 pp against the same quarter a year ago. Across 15 fiscal years the operating margin has ranged 6.0%–11.0%, and FY26's 11.0% is the top of that band — a record year.

Why the margin moved: operating margin went +0.8 pp year on year while gross margin went −2.5 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Marine Electricals (India) Ltd earned ₹18.0 Cr of net profit in the Jun 26 quarter, +50.0% year on year. It is the 6th consecutive quarter of growth. Full-year FY26 profit was ₹59.0 Cr. The 10-year compound rate is 20.7%. That is 6.9% of the quarter's revenue. The same quarter a year earlier earned ₹12.0 Cr.

Jun 26 profit was ₹18.0 Cr, +50.0% year on year — the 6th consecutive quarter of growth. On the full year, FY26 printed ₹59.0 Cr (+55.3%), and the 10-year compound rate is 20.7%.

Why profit moved: revenue contributed +55.1% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +64.1% vs revenue +23.6%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 26% of Marine Electricals (India) Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹−16.0 Cr of operating cash against ₹59.0 Cr of profit. After ₹37.0 Cr of capital spending, ₹−53.0 Cr was left as free cash.

FY26: operating cash of ₹−16.0 Cr against reported profit of ₹59.0 Cr, leaving free cash of ₹−53.0 Cr after ₹37.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 26% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 26%: the cash cycle tightened 59 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 2.1× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Marine Electricals (India) Ltd's cash conversion cycle runs 93 days in FY26, down from 152 days in FY21. Capital spending ran ₹88.0 Cr over the last 3 years. At FY26 sales of ₹877 Cr each day of that cycle holds about ₹2.4 Cr, so roughly ₹223 Cr sits inside the business at any moment.

FY26: debtors at 178 days, inventory at 50 days — roughly 1.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 93 days, tighter than FY21's 152.

The full loop: cash goes out to suppliers and production on day 0; stock waits 50 days to sell; customers pay about 178 days after that; and suppliers themselves are paid at 135 days — netting out to the 93-day cycle.

In money terms: at FY26 sales of ₹877 Cr, each day of the cycle holds about ₹2.4 Cr — so the 93-day loop keeps roughly ₹223 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹88.0 Cr over the last 3 fiscal years against ₹41.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹14.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Marine Electricals (India) Ltd earns a ROCE of 18% in FY26. That is up from a trough of 9% in FY20. Return on invested capital clears the cost of that capital by +3.6 percentage points, so growth here adds value rather than only size. The wiring behind it is 6.7% net margin on 0.99× asset turns.

Why this happened. ROCE improved from 12% (FY22) to 18% (FY26) over four years, indicating genuine capital deployment improvement as the business scales. However, the cycle_normalized analysis places current ROCE at the 70th percentile of its own history and the OPM driving it at the 79th percentile — so the question is whether ROCE improvement is durable or peak-cycle. The MID_EXPANSION operating cycle stage (not PEAK yet) provides qualified support.

FY26 ROCE is 18%, recovered from a FY20 trough of 9% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 6.7% net margin × 0.99× asset turns × 1.81× balance-sheet leverage ≈ 12.0% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 15.6% − 12.0% = a +3.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Marine Electricals (India) Ltd carries total debt of ₹89.0 Cr against shareholder equity of ₹502 Cr as of Mar 26, a debt-to-equity of 0.18 — effectively unlevered. On the annual view that ratio went from 0.20 in FY22 to 0.18 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹89.0 Cr against shareholder equity of ₹502 Cr — a debt-to-equity of 0.18. On the annual view, debt-to-equity went from 0.20 (FY22) to 0.18 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 3.0 points of Marine Electricals (India) Ltd over 8 quarters, the biggest move on the register. That takes promoters to 68.2% of the company. Foreign institutions moved +0.9 points over the same window, to 1.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −3.0 points over 8 quarters to 68.2%; Foreign institutions: +0.9 points over 8 quarters to 1.1%; Domestic institutions: +0.3 points over 8 quarters to 0.4%.

🚨 Why the register moved: promoters drove it (−3.0 points), absorbed on the other side by foreign institutions (+0.9 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Marine Electricals (India) Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Marine Electricals (India) Ltd trades at 90.2× P/E, at the pricey end of its own range (92nd percentile). Its long-run median P/E is 42.4×, measured across 7.9 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 90.2× is at the pricey end of its own range (92nd percentile), against a long-run median of 42.4× measured over 7.9 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +49.5% against a +113.0% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +61.8%/yr price move, ~+23.4%/yr came from earnings growth and ~+38.4 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 29 June 2026 price, Marine Electricals (India) Ltd was paying for profit growth of about 30.8% a year. Profit itself has compounded 20.7% a year over the past 10 years. Today the market pays 90.2× P/E, the 92nd percentile of its own 8-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is above what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 29 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Marine Electricals (India) Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 19.3% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

4-Factor Sector Score

73.9/100 — rank 1 of 3 in Shipping - Proxy · 97% evidence confidence

Marine Electricals (India) Ltd scores 73.9 out of 100 against the 3 companies it is compared with in Shipping - Proxy, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 30 + 14.3 + 9.6 + 20 = 73.9. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Frequently asked questions