Mahindra EPC Irrigation Limited (MAHEPC) AI Stock Analysis

• Market Cap: ₹2.96B
• Dividend Yield: N/A
• Average Volume (3M): 6.85K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.18
• 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: 55 Neutral
• Price Target: ₹109.00 ▼(-18.66% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is primarily weighed down by weak technicals (below all major moving averages and negative MACD) and cash flow concerns (negative free cash flow growth and OCF below net income). These are partially offset by a stable, low-leverage balance sheet and a reasonable P/E valuation.

Positive Factors

High Gross Margin

A 54% gross margin indicates durable product-level profitability and pricing power in micro‑irrigation components. This margin buffer supports investment in distribution and project execution, and helps absorb raw‑material cost swings over the next several quarters.

Low Financial Leverage

A low debt-to-equity ratio and strong equity base provide financial flexibility to fund project pipelines, capex, or working capital without heavy refinancing. This reduces solvency risk and supports stability across seasonal agricultural cycles.

Moderate Revenue Growth

Sustained ~21% revenue growth signals expanding adoption of irrigation solutions and market traction. Continued top-line expansion supports scale benefits, broader installed base, and cross‑sell/service revenue potential over the medium term.

Negative Factors

Weak Net Profitability

A 2.6% net margin shows limited conversion of strong gross profits into bottom‑line earnings, constraining retained earnings and return to shareholders. Persistently low net margins can limit reinvestment capacity and long‑term ROE improvement.

Poor Cash Generation

OCF falling short of net income and negative free cash flow growth indicate cash conversion problems. This undermines the firm's ability to self‑fund projects, increases reliance on external capital, and raises execution risk for multiquarter investment plans.

Declining EBIT/EBITDA Margins

Eroding operating margins suggest rising operating costs or project margin pressure. If structural, margin degradation can reduce competitiveness, lower profitability sustainability, and necessitate pricing or efficiency fixes to restore long‑term margin health.

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 makes money primarily by selling micro-irrigation products and executing irrigation system deployments for farmers and agricultural projects. Its key revenue streams typically include (1) product sales of drip irrigation systems (laterals, driplines, emitters, filters, valves, fittings, and related accessories) and sprinkler irrigation systems (sprinklers, pipes, and associated hardware), and (2) project-based revenue from design, supply, installation, and commissioning of micro-irrigation systems for farms and institutional/area-based projects. Depending on the project, revenue may also include service-related income tied to planning, field layout, installation labor, and after-sales support. Material factors that commonly influence earnings in this business include agricultural demand (cropping patterns, farm incomes), monsoon variability and water availability, pricing and availability of polymers and other raw materials used in irrigation components, distribution reach through dealers/channel partners, and the pace of adoption of micro-irrigation. Specific details on MAHEPC’s exact revenue mix, named partnerships, or the proportion of earnings from government subsidy-linked programs are null.

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%) support the score. However, profitability is weak (net margin 2.6%, ROE 4.2%) and cash flow quality is a key concern with negative free cash flow growth and operating cash flow trailing net income (OCF/NI -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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.89B	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	259.80M	163.50M	84.20M	-106.30M	-50.03M	292.59M
Net Income	140.10M	72.10M	16.70M	-123.10M	-79.07M	189.62M
Balance Sheet
Total Assets	3.01B	2.92B	2.57B	2.53B	2.80B	2.68B
Cash, Cash Equivalents and Short-Term Investments	17.80M	16.90M	30.10M	81.20M	400.00K	44.38M
Total Debt	365.80M	254.00M	159.00M	151.50M	251.91M	264.00K
Total Liabilities	1.27B	1.19B	918.10M	897.70M	1.04B	815.10M
Stockholders Equity	1.74B	1.73B	1.65B	1.63B	1.75B	1.86B
Cash Flow
Free Cash Flow	-115.20M	-63.50M	-9.00M	168.50M	-239.49M	96.23M
Operating Cash Flow	-103.40M	-43.90M	15.80M	190.30M	-231.31M	110.07M
Investing Cash Flow	-8.90M	-15.30M	-16.70M	-24.00M	-9.63M	-10.56M
Financing Cash Flow	96.30M	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 114.08, above the 50-day MA of 119.76, and below the 200-day MA of 136.99, indicating a bearish trend. The MACD of -2.75 indicates Positive momentum. The RSI at 36.44 is Neutral, neither overbought nor oversold. The STOCH value of 43.39 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	₹1.60B	6.70	―	2.79%	9.72%	-57.95%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
MAHEPC	55 Neutral	₹2.96B	13.84	―	―	17.09%	―
SADBHAV	46 Neutral	₹1.29B	-0.64	―	―	―	―
SADBHIN	43 Neutral	₹870.00M	-0.31	―	―	4.63%	67.17%
IL&FSENGG	40 Underperform	₹3.11B	-217.69	―	―	-6.13%	98.35%