Mahindra EPC Irrigation Limited (MAHEPC) AI Stock Analysis

• Market Cap: ₹3.32B
• Dividend Yield: N/A
• Average Volume (3M): 6.85K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.29
• Revenue Growth: 17.09%
• EPS Growth: N/A
• Country: IN
• Employees: 329
• Sector: Services
• Sector Strength: N/A
• Industry: Agricultural - Machinery
• EPS (TTM): 2.32
• Shares Outstanding: 27,942,469
• 10 Day Avg. Volume: 4,639
• 30 Day Avg. Volume: 6,854
• PEG Ratio: 0.14
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 1.22
• P/FCF Ratio: -52.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹124.00 ▼(-7.46% Downside)

The score is held back primarily by weak technical momentum (below key moving averages with negative MACD and low RSI) and cash flow pressure (negative free cash flow trend and weak operating cash conversion), partially offset by a low-leverage balance sheet and strong gross margins.

Positive Factors

High gross margins

A 54% gross margin indicates durable product-level pricing power and effective cost control in manufacturing and inputs. Sustained high gross margins provide capacity to absorb SG&A, fund R&D/maintenance, and support margin recovery even if operating efficiency is gradually improved over months.

Low financial leverage

Very low debt and a strong equity ratio give the company structural financial flexibility to fund working capital, invest in projects, or withstand cyclical agricultural seasonality without high refinancing risk. This reduces bankruptcy risk and supports multi-month strategic initiatives.

Market positioning & revenue mix

Core focus on drip/sprinkler irrigation and ties to government/NGO projects anchor recurring project pipelines and aftermarket services. Structural demand for water-efficient agriculture and diversified channels (direct, retail, institutional) supports durable revenue streams and scale opportunities.

Negative Factors

Weak cash flow conversion

Operating cash outflows exceeding net income signals weak cash conversion and raises funding needs for capex, inventories, or working capital. Persistent negative FCF impairs the firm's ability to self-finance growth initiatives, return capital, or build cash buffers over the coming months.

Thin net margins & low ROE

Low net margins and modest ROE point to limited profitability after operating costs and taxes. Over a multi-month horizon this constrains reinvestment capacity, shareholder returns, and the ability to absorb cost shocks, requiring operational or pricing improvements to restore returns.

Declining operating margins & revenue below peak

Revenue trailing prior peaks alongside falling EBIT/EBITDA margins suggests structural pressure on operational efficiency or competitive pricing. Without sustained margin recovery or clear revenue acceleration, profitability and cash generation may remain constrained over the medium term.

Mahindra EPC Irrigation Limited Business Overview & Revenue Model

Company Description

Mahindra EPC Irrigation Limited manufactures and sells micro irrigation systems in India. The company's drip irrigation products include online drip irrigation products, such as drippers and plain lateral products; inline drip irrigation products comprising non PC cylindrical, PC cylindrical, flat, PC flat, and thin wall flat inline products; and drip irrigation components consisting of hydrocylone, sand, screen, and disc filters, as well as header assemblies. Its sprinkler irrigation products comprise sprinkler heads, quick pipe coupling pipes, and rain guns; and bore well, monoblock, and open well submersible pumps. The company also offers HDPE pipes and pipe coils; and landscape and turf irrigation products comprising valves, nozzles, rotors, and spray bodies. In addition, it provides agronomy support, and crop and farm advisory services. Further, it offers specialized pipes for water conveyance and gas distribution. The company also exports its products. The company was formerly known as EPC Industrie Limited and changed its name to Mahindra EPC Irrigation Limited in February 2019. Mahindra EPC Irrigation Limited was incorporated in 1981 and is based in Nashik, India. Mahindra EPC Irrigation Limited is a subsidiary of Mahindra and Mahindra Limited.

How the Company Makes Money

MAHEPC generates revenue primarily through the sale of its irrigation systems, including drip and sprinkler irrigation technologies. The company has established a diverse revenue model that includes direct sales to farmers, distribution through agricultural retailers, and partnerships with government agencies and NGOs for large-scale irrigation projects. Key revenue streams also include maintenance services, installation, and consultancy related to irrigation management. Strategic partnerships with agricultural organizations and participation in government initiatives to promote irrigation efficiency further enhance its earnings potential.

Mahindra EPC Irrigation Limited Financial Statement Overview

Summary

Strong gross margin (54%) and a healthy balance sheet with low leverage (debt-to-equity 0.15, equity ratio 59%) are positives, but profitability is weak (net margin 2.6%, modest ROE 4.2%) and cash generation is a key concern with negative free cash flow growth and operating cash flow trailing net income (OCF/net income -0.61).

Income Statement

The company's revenue has shown moderate growth over the past year but remains below its peak levels from prior years. Gross profit margin is strong at 54%, indicating effective cost management. However, net profit margin is low at 2.6% due to declining EBIT and EBITDA margins, indicating reduced operational efficiency.

Balance Sheet

The balance sheet is relatively healthy with a low debt-to-equity ratio of 0.15, suggesting low financial leverage and risk. The equity ratio is robust at 59%, reflecting a strong capital position. Return on Equity (ROE) is modest at 4.2%, indicating limited profitability on shareholders' equity.

Cash Flow

Cash flow analysis reveals negative free cash flow growth, a concerning trend. The operating cash flow to net income ratio is -0.61, indicating operational cash outflows exceeding net income. However, the company has improved its cash position since the previous year.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.90B	2.73B	2.62B	2.10B	2.12B	2.54B
Gross Profit	1.49B	1.47B	1.22B	384.50M	779.64M	1.20B
EBITDA	214.90M	163.50M	84.20M	-106.30M	-50.03M	292.59M
Net Income	108.20M	72.10M	16.70M	-123.10M	-79.07M	189.62M
Balance Sheet
Total Assets	0.00	2.92B	2.57B	2.53B	2.80B	2.68B
Cash, Cash Equivalents and Short-Term Investments	16.90M	16.90M	30.10M	81.20M	400.00K	44.38M
Total Debt	0.00	254.00M	159.00M	151.50M	251.91M	264.00K
Total Liabilities	-1.73B	1.19B	918.10M	897.70M	1.04B	815.10M
Stockholders Equity	1.73B	1.73B	1.65B	1.63B	1.75B	1.86B
Cash Flow
Free Cash Flow	0.00	-63.50M	-9.00M	168.50M	-239.49M	96.23M
Operating Cash Flow	0.00	-43.90M	15.80M	190.30M	-231.31M	110.07M
Investing Cash Flow	0.00	-15.30M	-16.70M	-24.00M	-9.63M	-10.56M
Financing Cash Flow	0.00	74.10M	-41.30M	-122.50M	197.14M	-166.38M

Mahindra EPC Irrigation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 134.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MAHEPC, the sentiment is Negative. The current price of 134 is above the 20-day moving average (MA) of 125.01, above the 50-day MA of 125.93, and below the 200-day MA of 141.00, indicating a bearish trend. The MACD of -3.21 indicates Positive momentum. The RSI at 32.85 is Neutral, neither overbought nor oversold. The STOCH value of 23.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MAHEPC.

Mahindra EPC Irrigation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASPINWALL	63 Neutral	₹1.65B	24.98	―	2.79%	9.72%	-57.95%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
MAHEPC	54 Neutral	₹3.32B	22.72	―	―	17.09%	―
SADBHIN	44 Neutral	₹1.17B	-1.86	―	―	4.63%	67.17%
SADBHAV	41 Neutral	₹1.05B	-0.65	―	―	―	―
IL&FSENGG	40 Underperform	₹2.94B	-168.52	―	―	-6.13%	98.35%

Mahindra EPC Irrigation Limited Corporate Events

Mahindra EPC Releases Investor Call Recording on Financial Results

Mahindra EPC Irrigation Limited announced the availability of the audio recording from its recent Investors & Analysts Conference Call, which discussed the company’s unaudited financial results for the half year ending September 30, 2025. This move reflects the company’s commitment to transparency and compliance with regulatory requirements, potentially enhancing investor confidence and stakeholder engagement.