PRIMAEGIS RESEARCH · INVESTMENT ANALYSIS PIPELINE
₹2,282
-2.12% · Mkt Cap ₹3,585 Cr
52W: ₹958 – ₹2,394

Spectrum Electrical Industries

NSE: SPECTRUM · BSE 544386 · Electrical Components / Capital Goods · Report date: 2026-07-25
PAT +75%/yr · 3Y CAGRMargins rising: OPM 15%, Q4 17%P/E 83.8 — priced for perfectionFY24-25 CFO negativeRS 98th pct · 5/5 Stage-2
Market Cap
₹3,585 Cr
CMP
₹2,282
ROCE
17.7%
ROE
19.9%
P/E (ttm)
83.8
Revenue FY26
₹505 Cr
PAT FY26
₹43 Cr
D/E
0.88
Promoter
— (n/a this run)
CCC
121 days
A1 · Business Model & Moat
screener.in · company disclosures

Incorporated 1995 (Jalgaon, Maharashtra). Injection moulding, electrical press components and surface treatment for automobile, electrical and stamped parts — a precision components supplier sitting between raw-material processors and OEMs across autos, electricals and consumer durables. Completed the acquisition of Alric Electric in 2026, adding electrical-components capability.

Moat assessment

  • Switching costs — moderate: qualified-vendor status with OEMs; part approvals take quarters to re-source.
  • Cost/scale — developing: multi-process integration (moulding + stamping + surface treatment) under one roof.
  • IP/intangibles — weak: build-to-print manufacturer; pricing power limited.

Model quality

  • Growth engine is volume + customer additions, visible in a 26%/yr sales CAGR.
  • Working-capital heavy: 121-day cash conversion cycle (87d receivables, 138d inventory).
  • Capex bet mid-flight: CWIP ₹117 Cr vs ₹136 Cr installed fixed assets.
A3 · Opportunity & Recent Developments
company filings · cited news

Tailwinds: electricals/consumer-durables localisation, auto-component content growth, Maharashtra industrial incentives. The opportunity is execution against an order book the company is investing ahead of.

A5 · Financials — 5-Year Trend
screener.in annual P&L
FYSales ₹CrYoYPAT ₹CrOPM
FY22251810%
FY23253+0.8%89%
FY24322+27.3%1912%
FY25397+23.3%2413%
FY26505+27.2%4315%
The FY23 pause was digested and growth re-accelerated with margin: OPM 9%→15% while sales doubled. PAT compounding at 75%/yr off a small base.
A8 · Balance Sheet & Fraud Filter
screener.in · FY26
ItemFY26 ₹CrFY25 ₹Cr
Equity + Reserves242190
Borrowings214166
Fixed Assets136128
CWIP11719
Total Assets621424

Fraud filter

⚠️CFO/PAT quality — FY24 −15%, FY25 −15%, FY26 repaired to 110% — two debt-funded years
Promoter pledge — zero, confirmed 31-Mar-2026
⚠️Receivable days — 87 — stable but high; watch post-expansion
⚠️Inventory days — 138 and the CCC is 121 days
Auditor changes — none reported in filings reviewed
⚠️Dilution — preferential allotment under board consideration (Jul-2026)
A9 · Quarterly Cadence
screener.in · last 6 quarters
QuarterSales ₹CrYoYOP ₹CrOPMPAT ₹Cr
Mar-25172+36.5%2514%13
Jun-2585+16.4%1214%6
Sep-25116+41.5%1513%8
Dec-25120+71.4%1815%9
Mar-26184+7.0%3217%20
Jun-2026 quarter not yet reported at generation time. Margin walked 13% → 17% across FY26 — the acceleration is recent and real.
A10 · Valuation
screener.in ratios
MetricCurrentContext
P/E (ttm)83.8listed 2025 — no long own-history; small-cap electricals peers trade 40–60×
P/B14.8book value ₹154
EV/Sales (approx)~7.5×on FY26 sales ₹505 Cr + net debt
PEG (crude)~1.183.8 ÷ 75% PAT CAGR — growth is the entire case
Peer table unavailable from screener this run — peer set (precision components/EMS) referenced qualitatively. The multiple prices continued 40%+ earnings growth; any working-capital stumble compresses both E and the multiple.
A13 · Risks
sorted by severity
HIGH

Valuation risk

83.8× trailing for a build-to-print components maker; the multiple assumes the FY26 acceleration persists.
Mitigant: position size + volatility-anchored stop
HIGH

Debt-funded growth history

FY24-25 CFO was negative while borrowings doubled; FY26 repaired it but the pattern must not recur through this capex cycle.
Mitigant: watch CFO/PAT each half-year
MEDIUM

Dilution

preferential allotment under consideration; pricing and quantum unknown.
Mitigant: read the EGM notice before adding
MEDIUM

Working capital

121-day CCC in a rising-volume business absorbs cash exactly when growth looks best.
Mitigant: track receivable/inventory days quarterly
MEDIUM

Customer concentration

OEM-dependent component supplier; disclosure on top-customer share is thin.
Mitigant: seek concentration data in annual report
LOW

Input costs

resins/steel/copper pass-through lags a quarter.
Mitigant: margin trend already demonstrates pass-through
A14 · Milestones to Watch
research tracking signals — not investment signals
A15 · Ownership
screener.in
Shareholding table unavailable from the source this run — promoter % renders as a dash rather than an estimate. Known: zero promoter pledge (company confirmation, 31-Mar-2026). Refresh next run.
Part B · Technical Posture
All technical levels are Research Reference Levels from the 25-Jul weekly pipeline (TradingView scanner data) — not buy/sell signals. Regime this week: Pullback in Bear, Swing Confidence 0/3 — every setup is WATCH-ONLY by rule.
Stage
Stage 2
S2 Score
5 / 5
RS vs CNX500
98th pct
TV Weekly TA
STRONG BUY
📈 Live Chart
TradingView Desktop MCP unavailable at report generation time.
View live chart: NSE:SPECTRUM on TradingView ↗️
⚡ CONSOLIDATED VIEW THESIS
Research Reference Only — Not an Investment Recommendation · Primaegis Research Pipeline

💡 INVESTMENT CASE SUMMARY

Spectrum is a precision components compounder mid-transformation: three years of 26% sales and 75% PAT growth with margins still rising, funded first by debt (FY24-25 negative CFO — since repaired) and now by an expansion MOU and a pending preferential allotment. The 98th-percentile relative strength says the market has found it; 83.8× trailing says the market has fully priced the next leg before it is delivered.

📊 FUNDAMENTAL PILLARS

Growth with margin
Sales 26%/yr and OPM 9%→15% (Q4: 17%) simultaneously — mix and scale, not price cuts. Source: A5
Balance-sheet inflection
FY26 CFO ₹71 Cr after two negative years; zero promoter pledge. Source: A8
Capacity ahead of demand
CWIP ₹117 Cr ≈ 86% of installed assets + ₹110 Cr state-backed expansion. Source: A3

📈 TECHNICAL POSTURE

Stage 2 leader
5/5 Stage-2, High breakout confirmation, 98th-pct RS — strongest structure on this week's board
Extended, not broken
4.7% off highs, RSI 71 — strong but pre-harvest zone
Gate shut
market regime blocks fresh entries; watch-only until 10-DMA breadth reclaims 45%
Fundamentals vs Technicals
ALIGNED
Fundamentals accelerating and technicals leading — the risk is price, not direction.

⚠️ PRIMARY RISKS TO THESIS

Valuation
any quarter of sub-20% PAT growth breaks the 84× premise
Cash conversion
CFO turning negative again through the capex cycle invalidates the repair thesis
Dilution terms
a deeply-discounted preferential issue resets the per-share story

🎯 RESEARCH WATCHLIST VERDICT

WATCH CLOSELY
🔑 Catalyst: preferential-allotment terms + Q1 FY27 margin print
⏱ Horizon: Medium-term (3–12M)
Research tracking priority only — not a buy/sell/hold recommendation per SEBI (RA) Regulations 2014
Primaegis Research Opinion · Internal Analyst View
ACCUMULATE
📊 Conviction: Medium  ·  ⏱ Horizon: Medium-term (3–12M)
🔄 Would change if: CFO goes negative again or PAT growth decelerates below ~25% for two quarters
STRONG BUYBUYACCUMULATENEUTRAL (HOLD)REDUCESELLSTRONG SELL
⚠️ This is an internal, unregulated analytical opinion of Primaegis Research for internal pipeline use only. It does NOT constitute a SEBI-regulated investment recommendation, research report, or solicitation to buy, sell, or hold any security. Consult a SEBI-registered investment advisor before making any financial decision.
⚠️ IMPORTANT DISCLAIMER
This document is a research and educational output only, generated by the Primaegis Research Investment Analysis Pipeline. Neither Ameya Pimpalgaonkar nor any contributor to this report is a SEBI registered investment advisor or research analyst. Nothing in this report constitutes investment advice, a research recommendation, or a solicitation to buy, sell, or hold any security, fund, or financial instrument under SEBI (Research Analyst) Regulations, 2014 or any other applicable law. All financial data is sourced from publicly available disclosures (screener.in, NSE/BSE filings, company releases). All technical levels are reference levels for research tracking only. Always conduct your own due diligence and consult a SEBI registered investment advisor before making any financial decision.
Generated: 2026-07-25 | Primaegis Research · Not for distribution.