Altman Z″
Needs current assets and current liabilities.
MVELECTRO · Electric Equipment · INE0OWZ01020
Analyst mean 0.00 · 0 analysts · 0% bullishThis company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Incorporated in 2009, MV Electrosystems Limited manufactures critical electrical and power electronics equipment for electric locomotives, coaches, and EMUs. Its core product range includes IGBT-based 3-Phase Drive Propulsion systems (comprising traction converters, auxiliary converters, vehicle control units, and driver display units), switchboard cabinets, and cable protection conduit assemblies. The company operates an integrated assembling-cum-manufacturing facility in Palwal, Haryana (Unit 1, with Unit 2 expansion underway), equipped with surface-mount technology (SMT) lines and specialized test setups. Indian Railways serves as its primary anchor customer, generating 76.72% of FY26 operating revenue, alongside private OEMs and group companies. Key raw materials—such as IGBTs, microprocessors, semiconductors, and specialized cables—are procured domestically and imported from China, the USA, UK, Hong Kong, and Singapore. What distinguishes the company is its in-house R&D focus, employing 45 specialized R&D personnel (21.84% of total workforce), which enabled it to achieve prototype clearance from Chittaranjan Locomotive Works (CLW) for its 3-Phase Propulsion Equipment and build an executable order book of ₹9,216.40 million.
In-house proprietary R&D capabilities for IGBT-based 3-Phase Drive Propulsion systems with prototype clearance from Chittaranjan Locomotive Works (CLW) and RDSO vendor approval, creating steep technological, regulatory, and capital-intensive entry barriers in Indian Railways' rolling stock procurement.
MV Electrosystems Limited is a technology-driven company engaged in the design, development, assembly, and manufacturing of electrical and power electronics equipment for railway rolling stock, including IGBT-based 3-Phase Drive Propulsion equipment and switchgear panels. The company earns revenue primarily through the supply of these specialized power electronics, control panels, and cable protection products to Indian Railways and private sector OEM suppliers.
Source: RHP Our Business p. 213, 222-225
Where the revenue came from, as the document splits it.
| Name | Pct | Source |
|---|---|---|
| Switchgear / Rail Coach / EMU panels | 53.33 | RHP p. 128, 218 |
| Cable Protection and Management Products | 34.64 | RHP p. 128, 218 |
| Rolling Stock Electrics and Propulsion Systems | 9.5 | RHP p. 128, 218 |
| Others | 2.51 | RHP p. 128, 218 |
The Indian railway equipment and propulsion industry is expanding rapidly, underpinned by Indian Railways' ambitious target of 100% network electrification by 2030, high-speed rail corridors, metro expansions across 25+ cities, and strategic infrastructure programs like PM GatiShakti and the National Rail Plan 2030. Government initiatives under 'Make in India' and Atmanirbhar Bharat aggressively promote indigenous manufacturing of advanced rolling stock components and power electronics, incentivizing the replacement of imported systems. Stringent safety norms, complex RDSO/CLW technical specifications, and multi-year prototyping and field-trial cycles create substantial entry barriers, favoring domestic established players with proven in-house R&D and integrated testing infrastructure.
Growth rate: 11.2% CAGR (CY20-CY25)
Market size: USD 71.9 million (CY25, Indian Railway Cable Assemblies)
Sector slug: railway-equipment-and-power-electronics
Source: RHP Industry Overview p. 159, 206-207
The comparable set the company chose, which is itself a disclosure.
| Name | Margin | Pb | Pe | Roe | Source |
|---|---|---|---|---|---|
| Hind Rectifiers Limited | 88.83 | 21.37 | p. 150 | ||
| Medha Servo Drives Private Limited | 24.37 | p. 151 |
As presented in the offer document. Post-listing figures are in the statements above.
| Period | Related party revenue cr | Pat cr | Ebitda cr | Pat margin | Revenue cr | Pat margin derived | Cff cr |
|---|---|---|---|---|---|---|---|
| FY26 | 2.488 | -12.629 | -25.55% | 49.428 | yes | 75.516 | |
| FY25 | 0.455 | 1.403 | 2.24% | 62.637 | yes | -3.632 | |
| FY24 | 1.048 | 0.557 | 1.11% | 49.957 | yes | 6.574 |
Written before listing, answered from the document itself.
Where is the money going?
Gross proceeds of ₹2,900.00 million from the Fresh Issue will be deployed as follows: ₹1,800.00 million for funding long-term working capital requirements, ₹210.00 million for R&D in new power electronic equipment, and the remainder for general corporate purposes and offer expenses.
RHP p. 124
How concentrated is the customer base?
Extremely concentrated. Indian Railways generated 76.72% of total revenue from operations in FY26 (₹379.22 million), 72.96% in FY25 (₹457.00 million), and 67.80% in FY24 (₹338.69 million). The top 10 customers combined accounted for 93.04% of FY26 revenue.
RHP p. 23, 219, 346
Is it profitable and growing?
No. Revenue from operations declined by 21.09% from ₹626.37 million in FY25 to ₹494.28 million in FY26. The company turned unprofitable in FY26, reporting a Restated Net Loss of ₹126.29 million (compared to a Net Profit of ₹14.03 million in FY25) due to high initial production and R&D costs for propulsion systems.
RHP p. 83, 221, 301, 328
What sits in the footnotes / contingent liabilities?
Contingent liabilities total ₹35.42 million as of March 31, 2026, comprising ₹30.62 million in performance bank guarantees and ₹4.80 million in disputed GST liabilities. Footnotes also reveal heavy supplier concentration (top 1 supplier Pelf Power Electronics at 39.24% of purchases), voluntary ROC adjudication applications for past statutory filing defaults, and anonymous complaints submitted to SEBI regarding factory safety and compliance.
RHP p. 34, 35-37, 40-42, 85, 200, 220, 351
What the issue priced at, on the figures in the document.
| Date | Name | Shares | Price per share | Category | Source |
|---|---|---|---|---|---|
| 2025-10-01 | Madhuri Madhusudan Kela | 575000 | 547 | financial investor | p. 105, 153 |
| 2025-08-25 | Raghav Investment Private Limited | 275000 | 547 | financial investor | p. 105 |
| 2025-08-25 | Lalitha Jain | 100000 | 547 | financial investor | p. 105 |
| 2023-09-06 | Ramendra Pratap Singh | 100 | 570 | promoter | p. 103, 106 |
Ceo: Pankaj Rastogi (Managing Director)
Against Company: 1 indirect tax proceeding involving ₹4.79 million (GST ITC demand). Against Promoters/Directors: ROC adjudication penalty of ₹15.80 million on group company Quadrant Future Tek Limited (including ₹1.20 million each on promoters Mohit Vohra and Amit Dhawan) under appeal before the High Court of Punjab & Haryana. DRT recovery suit of ₹11.19 million against Independent Director Vipin Sharma as a former director/guarantor of Urbanfresh Agrofood.
Promoters and Promoter Group collectively hold 76.92% (15,737,200 Equity Shares) of the pre-Issue paid-up share capital. None of the promoter shares are pledged or encumbered. The Offer is 100% Fresh Issue, resulting in zero secondary dilution by promoters.
Statutory auditors raised no qualifications in restated financial statements. However, Note 43.13 notes that mandated database-level audit trail (edit log) features were implemented in accounting software from FY24 onwards. Significant related party transactions exist with Group Company Quadrant Future Tek Limited (purchases of ₹137.09 million in FY25 and ₹25.59 million in FY26).
Source: RHP p. 1, 35-38, 48-50, 85-86, 102, 111, 220, 348, 418-424
A change between the two filings is a disclosure in itself.
| Field | Rhp value | Drhp value | Note | Source |
|---|---|---|---|---|
| Designated Stock Exchange | National Stock Exchange of India Limited (NSE) | [●] | NSE was formally designated as the Designated Stock Exchange in the RHP. | DRHP p. 7; RHP p. 6, 437 |
| Financial Information Period | Restated financial statements for full financial years ended March 31, 2026, 2025 and 2024 | Restated financial statements for the four-month period ended July 31, 2025 and Fiscals 2025, 2024 and 2023 | The restated financial statements were rolled forward to cover full fiscal year 2026, dropping the four-month stub period and Fiscal 2023. | DRHP p. 2, 25; RHP p. 2, 81 |
| Promoter Shareholding (Pre-Issue) | 76.92% (15,737,200 Equity Shares) | 78.75% (16,112,200 Equity Shares) | Promoter Group shareholding decreased from 78.75% to 76.92% prior to the RHP due to pre-IPO secondary share transfers. | DRHP p. 105; RHP p. 108 |
| Commercial Orders & Order Book | Executable order book for 3-Phase Propulsion Equipment expanded to ₹9,216.40 million (564 sets) following bulk purchase orders from CLW, BLW, PLW, and Modern Coach Factory. | Prototype clearance received on September 15, 2025; single developmental order of ₹26.59 million for 1 set of 3-Phase Propulsion Equipment. | The company transitioned from prototype approval status to receiving bulk commercial purchase orders aggregating ₹9,216.40 million prior to RHP filing. | DRHP p. 43; RHP p. 29, 152 |
| Anonymous Complaints / SEBI Scrutiny | Added disclosure regarding anonymous complaints received by SEBI in February, May, and June 2026 post-DRHP filing alleging factory safety, POSH, and GST non-compliances. | Not present in the DRHP | Disclosures regarding post-DRHP anonymous complaints received by SEBI and the company's responses were incorporated into the RHP. | RHP p. 42, 496 |
| ROC Adjudication Application Status | ROC Haryana advised via letter dated July 01, 2026 to file separate e-form GNL-1 applications for each default in place of the consolidated application. | Composite adjudication application filed before ROC on November 26, 2025 for statutory filing delays. | Updated status on ROC adjudication proceedings for historical compliance delays. | DRHP p. 36; RHP p. 37, 421 |
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
What the numbers mean when read together — computed from the filings, not a score.
Net margin has narrowed from 1.6% to -54% year-on-year — profitability per rupee of sales is shrinking.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Quarter net margin -54% vs 1.6% four quarters earlier. Sustained compression signals pricing pressure, cost inflation, or mix deterioration.
Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Latest free cash flow ₹-76 cr, negative in 3 of 4 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.
Operating cash is 446% of trailing profit — the earnings are converting to real cash, not just accruals.
Why this reading: A positive signal: cash conversion at or above ~0.9 means reported profit is showing up as actual cash.
Operating cash ₹-58 cr against trailing net profit ₹-13 cr. Consistent conversion near or above 1.0 is a hallmark of genuine earnings.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are 40.9% of assets. Free cash flow negative in 3 of 4 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Capital is going in far faster than revenue is coming out. For a business mid-build that is expected — the test is whether it converts.
cumulative operating cash flow ÷ cumulative net profit
₹-55 cr ÷ ₹-10 cr, over 4 years
5.50×
Above 1.0 means cash exceeds reported profit — the healthier reading.(net profit − operating cash flow) ÷ average total assets
(₹-13 − ₹-58) cr ÷ average assets
40.9%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
-26.5% × 0.34 × 2.35
-21.0%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹-13 cr ÷ ₹4 cr
-3.25×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹55 cr ÷ ₹62 cr
0.89×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +117% vs revenue +-28%, FY2023 to FY2026
145pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 57.68% to 57.68% across these quarters.
FII held steady from 1.79% to 1.79% across these quarters.
MF held steady from 5.09% to 5.09% across these quarters.
Other held steady from 35.44% to 35.44% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Debtor days
How long customers take to pay | 44 | 92 | 85 | 77 |
| Inventory days
How long stock sits before it sells | 111 | 351 | 321 | 731 |
| Payable days
How long the company takes to pay suppliers | 69 | 178 | 187 | 238 |
| Cash conversion cycle
Debtor + inventory − payable days | 85 | 265 | 219 | 571 |
| Working capital days | -11 | 22 | 18 | 230 |
| ROCE %
Return on capital employed | — | 10.0% | 12.0% | -15.0% |
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Revenue from operations | 68 | 50 | 63 | 49 |
| Other income | 0 | 1 | 2 | 0 |
| Depreciation | 3 | 3 | 3 | 3 |
| Finance cost | 2 | 3 | 4 | 4 |
| Profit before tax | 2 | 1 | 3 | -17 |
| Net profit (owners) | 1 | 1 | 1 | -13 |
| EPS (₹) | 1,190.00 | 0.77 | 1.53 | -6.17 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Jun 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|
| Revenue | 13 | 15 | 13 |
| Other Income | 0 | 0 | 0 |
| Expenses | 17 | 21 | 18 |
| Depreciation | 1 | 1 | 2 |
| Finance cost | 1 | 1 | 1 |
| Profit before tax | -5 | -8 | -8 |
| Net Profit | -6 | -3 | -7 |
| EPS | -6.27 | -1.42 | -3.37 |
| Item | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Equity Capital | 0 | 7 | 9 | 10 |
| Reserves | 12 | 9 | 9 | 52 |
| Borrowings | 21 | 33 | 32 | 55 |
| Net block | 14 | 24 | 23 | 37 |
| CWIP | 4 | 1 | 0 | 2 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 45 | 66 | 74 | 146 |
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Cash from operations | 3 | -5 | 5 | -58 |
| Cash from investing | -10 | -4 | -1 | -18 |
| Cash from financing | 8 | 7 | -4 | 76 |
| Free cash flow | -7 | -9 | 3 | -76 |
| Net change in cash | 1 | -2 | 0 | 0 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.