Mazda Limited (MAZDA) AI Stock Analysis

• Market Cap: ₹4.05B
• Dividend Yield: 1.64%
• Average Volume (3M): 2.19K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.74
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 233
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 3.79
• Shares Outstanding: 20,025,000
• 10 Day Avg. Volume: 1,827
• 30 Day Avg. Volume: 2,185
• PEG Ratio: -0.91
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 2.47
• P/FCF Ratio: 73.01
• 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: 68 Neutral
• Price Target: ₹211.00 ▼(-4.93% Downside)

The score is primarily supported by strong financial stability (very low leverage and solid profitability), but is held back by inconsistent cash generation and recent revenue/margin softness. Technically, the stock remains in a weak trend below key moving averages, while valuation looks fair with a modest dividend yield.

Positive Factors

Balance Sheet Strength

Mazda's extremely low leverage and large equity base provide durable resilience through automotive cycles. This structural balance-sheet strength supports capital spending, R&D, and after-sales investments without relying on market funding, preserving strategic flexibility over months.

Sustained Profitability

Consistently healthy net and operating margins reflect an underlying profitable business model and operational efficiency. Durable margins help absorb cost variability, fund reinvestment and shareholder returns, and support long-term competitiveness in vehicle segments.

Proven Free Cash Flow Capacity

Despite episodic swings, the company has demonstrably produced very strong FCF recently and remained free-cash-positive in 2025. That recurring ability to convert earnings to cash supports capex, product development and distributions, bolstering long-term financial flexibility.

Negative Factors

Inconsistent Cash Conversion

A sharp fall in operating cash flow and weak coverage of net income indicate unreliable cash conversion. Over 2–6 months this raises execution and working-capital risk, complicates planning for capex or dividends, and could force defensive liquidity actions if SW swings persist.

Revenue Decline and Margin Pressure

A reversal from 2024 growth to 2025 revenue decline and gross-margin compression suggests structural demand, pricing or mix challenges. If sustained, this can erode operating leverage, reduce investment capacity, and impair the company's ability to regain prior growth trajectories.

Easing Returns on Equity

ROE moderation in 2025 signals slipping efficiency or profitability versus the prior year. Persistently lower ROE can limit long-term shareholder value creation and suggest competitive or cost pressures that may require structural changes to restore prior capital returns.

Mazda Limited Business Overview & Revenue Model

Company Description

Mazda Limited operates as an engineering company in India. It operates in two segments, Engineering Division and Food Division. The company offers vacuum systems, including steam jet boosters and ejectors; steam jet air ejector systems; combination vacuum systems of steam jet ejectors and liquid ring vacuum pumps; combination vacuum systems of steam jet ejectors and liquid jet ejectors; thermocompressors; liquid jet ejectors; air jet ejectors; vapor and gas jet ejectors/systems; steam jet liquid ejectors; liquid jet liquid ejectors; steam jet liquid heaters and mixers; single/double stage liquid ring vacuum pumps; and hotshot mechanical automatic pumps. It also provides evaporators, such as falling/rising film evaporators, forced circulation evaporators, combination type evaporators, OSLO crystallizers, pilot plants, agitated thin film dryers, and stripper systems; and chillers comprising vapor absorption machines/heat pumps and chiller vector systems. In addition, the company offers heat transfer products that include condensing systems, steam surface condensers, steam jet air ejector systems, gland vent condensers, dump condensers, feed water heaters, oil coolers, shell and tube heat exchangers, flash tanks, and pressure vessels. Further, it provides air pollution control equipment, which comprise jet venturi fume, high energy fume, and packed tower scrubbers, as well as food products. The company also exports its products to approximately 40 countries including the United States, Europe, and internationally. It serves the chemicals and pesticides, drugs and pharmaceuticals, dye and intermediates, edible oil refining, ethylene-glycol-motive fluid, fertilizers, petroleum refinery, petro chemicals, power, steel, and vegetable oil industries. Mazda Limited was incorporated in 1990 and is based in Ahmedabad, India.

How the Company Makes Money

Mazda Limited Financial Statement Overview

Summary

Overall financial quality is good: a very strong, low-leverage balance sheet (essentially no debt) supports resilience, and profitability remains solid. The main drag is cash-flow volatility and weak cash conversion in 2025 alongside revenue decline and margin compression versus 2024.

Income Statement

Profitability is solid, with healthy operating and net margins across the period (net margin generally ~11%–14% and still ~13% in 2025). However, growth has turned volatile: revenue declined in 2025 after a strong 2024, and 2025 also shows a notable drop in gross margin versus 2024, signaling pressure on pricing, mix, or costs.

Balance Sheet

The balance sheet is very strong and conservatively financed, with essentially no debt and a large equity base. Returns on equity are decent (roughly low-teens to mid-teens), though they eased in 2025 versus 2024, suggesting profitability or efficiency moderated despite the strong capital position.

Cash Flow

Cash generation is the key weak spot: operating cash flow dropped sharply in 2025 and covers net income poorly versus prior years, indicating earnings are not consistently translating into cash. Free cash flow is positive in 2025 and was very strong in 2024, but the history includes lumpiness (including negative free cash flow in 2022), raising confidence risk around cash conversion and working-capital swings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.07B	1.93B	2.24B	1.90B	1.64B	1.52B
Gross Profit	713.00M	542.78M	1.07B	491.25M	786.82M	686.14M
EBITDA	400.68M	374.29M	462.89M	394.47M	307.19M	237.19M
Net Income	268.72M	248.54M	315.20M	266.26M	212.44M	163.29M
Balance Sheet
Total Assets	0.00	2.65B	2.40B	2.24B	1.92B	1.73B
Cash, Cash Equivalents and Short-Term Investments	966.52M	966.52M	894.83M	498.51M	340.69M	406.82M
Total Debt	0.00	0.00	0.00	6.30M	2.77M	12.96M
Total Liabilities	-2.30B	347.65M	282.56M	383.82M	276.46M	256.18M
Stockholders Equity	2.30B	2.30B	2.12B	1.86B	1.64B	1.47B
Cash Flow
Free Cash Flow	0.00	65.42M	401.54M	189.84M	-74.50M	100.30M
Operating Cash Flow	0.00	105.54M	430.24M	235.86M	83.96M	199.76M
Investing Cash Flow	0.00	-88.05M	-302.99M	-146.13M	-49.81M	-197.64M
Financing Cash Flow	0.00	-64.08M	-64.64M	-56.17M	-60.97M	-20.68M

Mazda Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAZDA	68 Neutral	₹4.05B	15.91	―	1.64%	―	―
MUNJALSHOW	66 Neutral	₹4.75B	18.32	―	3.69%	―	―
REMSONSIND	65 Neutral	₹3.79B	23.32	―	0.24%	28.08%	3.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%