1.At a Glance

Welcome toDisa India Ltd (BSE: 500068), the company that builds the machines that build your machines — and still somehow manages to be more profitable than half the startup ecosystem. As ofNovember 4, 2025, the stock trades at₹13,543, sporting amarket cap of ₹1,970 croreand a price-to-earnings (P/E) ratio of37.3x— because apparently, even foundry dust can sparkle when investors smell high return on equity.

InQ2FY26, the company reportedrevenue of ₹104 crore, up21.4% YoY, but withPAT of ₹12.2 crore, down a modest1.3%. That’s what we call the “engineer’s heartbreak”: when your machine performs beautifully, but your margins don’t. Still,ROE at 21.7%andROCE at 29.2%are as shiny as a freshly polished casting mold.

The balance sheet looks so clean, it could make even the RBI blush —debt: ₹0.11 crore(basically lunch money),current ratio: 2.16, and adividend yield of 1.48%. The only smudge? A7.2x price-to-book ratio. Expensive? Yes. Deserved? We’ll see.

So what’s the story behind this ₹13,000 stock that turns sand into profit and engineers into believers? Let’s cast this metal right.

2.Introduction – The Foundry Fairy Tale

Once upon a furnace, in the industrial alleys of Karnataka, stood a company that quietly built the backbone of India’s manufacturing:Disa India Ltd, the foundry equipment magician. While IT companies were getting all the headlines and IPO hype, Disa was busy making the literal molds that shape the economy’s metal parts — from auto to aerospace.

Unlike your typical small-cap chaos, Disa doesn’t flirt with leverage, dilution, or financial drama. Its biggest scandal? Possibly that it’stoo boringly efficient.The company is part of theNorican Group, a global behemoth in foundry and surface preparation tech — meaning it’s the Indian cousin who actually does the work while the European uncle takes credit at conferences.

And just when competitors likeKaynes TechandHoneywell Automationare burning investor cash to chase growth, Disa quietly expands itsTumkur facility, buys more land, and even opens up shop inQatarthroughDISA Foundry Doha. The foundry world isn’t glamorous, but Disa is what happens when precision engineering meets German discipline and Indian cost efficiency.

But wait — what’s cooking under this ₹2,000 crore crucible? A company that’s compounding quietly, paying dividends generously, and delivering14–16% profit CAGR over 5–10 years. And yet, it’s down27% in the past year. Either the market doesn’t understand metal, or investors forgot that quality compounding doesn’t come with a neon sign.

3.Business Model – WTF Do They Even Do?

Let’s be honest: explaining foundry equipment to most investors is like explaining quantum physics to your dog. But here’s the human version.

Disa India Ltddesigns and manufactures foundry machinery — the kind that helps foundries (where molten metal is poured into molds) produce castings efficiently. Their machines handlemolding,sand mixing,surface cleaning, andenvironmental control systems. Think of it as the full-service spa for metal.

Theproduct portfolioincludes:

• Foundry systems: molding machines, sand plants, mixers, and casting systems.
• Surface preparation: shot blast equipment that cleans and preps metal surfaces.
• Industrial filters: the unsung heroes preventing dust explosions in plants (cassette, cartridge, pulse jet, silo vent types).

The company earns~98% of its revenuefrom foundry machinery and just~2% from filters and services— proving it knows what pays the bills and what just filters the air.

Geographically, around81% of revenues come from Indiaand19% from exports, mainly to theMiddle East and Africa— with new forays into theUSA,Turkey, andAustraliavia its global parentNorican.

And with asix-distributor, nine-warehouseaftermarket setup across India, Disa doesn’t just sell machines — it also ensures spare parts and service revenues keep dripping in like recurring rental income.

Essentially, it’s the company that keeps foundries