1. At a Glance
Integra Engineering India Ltd is a Swiss-parented capital goods company building railway-grade components, signaling systems, enclosures, and propulsion modules—basically the skeletal and nervous system of trains. It’s quietly grown into a ₹166 Cr revenue player with a clean 24% ROCE, 19% OPM, and zero debt drama. But yes, they still won’t pay dividends. Ever.
2. Introduction with Hook
Imagine if the Indian Railways married a Swiss engineer—this would be their nerdy, high-performance love child. Integra Engineering is the kind of company you don’t notice until you realize your local train’s control panel, signaling relay, and pantograph enclosure came from Gujarat.
- 5-year PAT CAGR: 26%
- FY25 Revenue: ₹166 Cr
- FY25 PAT: ₹18 Cr
- ROCE: 24.4%
- Dividend: Still playing hard to get
3. Business Model (WTF Do They Even Do?)
- Designs and manufactures propulsion systems, enclosures, relay panels, and wiring kits for railway locomotives
- Major clients: Indian Railways, Metro Rail Projects, Railway OEMs
- ISO 9001 / 14001 / 45001 certified
- Subsidiary of Integra Holding AG, Switzerland (They own 54.44%)
- Products include RDSO-approved LED signals, FACS units, and M2C relays
And yes, they even supply to semi-high-speed train projects. Hello, Vande Bharat buzz!
4. Financials Overview
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | EPS (₹) |
|---|---|---|---|---|
| FY23 | 133 | 18 | 16% | 5.29 |
| FY24 | 147 | 15 | 16% | 4.23 |
| FY25 | 166 | 18 | 19% | 5.38 |
Key Takeaways:
- Growth is steady, not flashy
- EPS back to FY23 levels after a dip
- Strong margin expansion in FY25 (OPM up 300 bps)
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹246 |
| EPS (FY25) | ₹5.38 |
| P/E | 45.7x |
| Book Value | ₹27.7 |
| P/B | 8.86x |
Fair Value Range:
Assuming 30x to 38x P/E → ₹161 to ₹204
It’s currently overpriced by 20–30% unless earnings spike further. Let’s just say optimism is baked in.
6. What’s Cooking – News, Triggers, Drama
- Jul 2025: Q1 FY26 results due 17 July—expect fireworks or meh-flares
- 2024: ₹10 Cr invested in machinery + solar roofing = forward-looking capex
- Oct 2023: 75,180 sq ft capacity expansion announced
- Sep 2023: Tribunal win = No service tax demand—big relief
- 2024: Resignation of Company Secretary… maybe she got tired of “No Dividend” too?
Also… Integra Systems Pvt Ltd has filed a winding-up petition. Drama?
7. Balance Sheet
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 3 | 3 | 3 |
| Reserves | 59 | 73 | 92 |
| Borrowings | 20 | 25 | 39 |
| Fixed Assets | 25 | 30 | 58 |
| Total Assets | 106 | 126 | 157 |
Observations:
- Borrowings increased in FY25—possibly for expansion
- Reserves growing healthily
- Capex nearly doubled fixed assets YoY = capacity-led growth is real
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹9 | -₹7 | ₹0 | ₹3 |
| FY24 | ₹17 | -₹16 | -₹1 | ₹0 |
| FY25 | ₹27 | -₹23 | -₹7 | -₹3 |
Insights:
- Operating cash flow rising steadily
- High CapEx in FY24 & FY25
- Negative net cash in FY25—due to machinery upgrades and solar installation
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 24.4% |
| ROE | 21.5% |
| OPM | 19% |
| EPS Growth | 27% |
| D/E Ratio | 0.42 |
| P/E | 45.7x |
| Debtor Days | 108 |
| Inventory Days | 164 |
| CCC (Days) | 199 |
Verdict:
Operational efficiency: strong.
Cash conversion cycle: could lose a few kilos.
10. P&L Breakdown – Show Me the Money
| FY25 (₹ Cr) | Value |
|---|---|
| Revenue | 166 |
| Operating Profit | 31 |
| Other Income | 1 |
| Interest | 2 |
| Depreciation | 4 |
| PBT | 26 |
| PAT | 18 |
Key Point:
Company runs lean with minimal interest cost—no financial engineering, just solid engineering.
11. Peer Comparison
| Company | CMP ₹ | Sales (₹ Cr) | PAT (₹ Cr) | ROE % | P/E | ROCE % |
|---|---|---|---|---|---|---|
| Kaynes Tech | 6,023 | 2,721 | 293 | 11.0 | 137.5 | 14.4 |
| Jyoti CNC | 1,027 | 1,818 | 323 | 21.2 | 72.3 | 24.4 |
| Tega Inds. | 1,772 | 1,639 | 200 | 15.5 | 59.2 | 17.7 |
| Integra Engg. | 246 | 166 | 18 | 21.5 | 45.7 | 24.4 |
Observation:
- Integra looks tiny in comparison
- But punches hard on ROE/ROCE
- Valuation is rich relative to size and scalability
12. Miscellaneous – Shareholding, Promoters
| Mar 2025 | Value |
|---|---|
| Promoter Holding | 54.44% |
| FIIs | 0.38% |
| DIIs | 0.30% |
| Public | 44.89% |
| No. of Shareholders | 28,342 |
Insights:
- Steady promoter holding
- Slight FII creep = possible institutional interest
- Public holding constant despite lack of dividend—respect
13. EduInvesting Verdict™
Integra Engineering is a small-cap precision player quietly building the guts of India’s trains—without ever blowing its own trumpet (or announcing a dividend). The 24% ROCE is rock-solid, margins are improving, and the capacity addition wave is underway.
But at 45x earnings and a 200-day CCC, even the Swiss might ask: “Kya ye thoda zyada nahi ho gaya?”
A clean, niche play for patient investors—but someone please teach them how dividends work.
Metadata
– Written by EduInvesting Research Desk | 14 July 2025
– Tags: Integra Engineering, capital goods, railways, Swiss holding, ROCE, high valuation, manufacturing, Gujarat engineering
