Chrome Silicon Limited

Basic Materials — Other Industrial Metals & Mining · BSE

₹41.99+₹1.99 (+4.98%)

DalalBaazaar Score

26 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company is currently losing money, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

Company site ↗

The 60-second version of Chrome Silicon Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Chrome Silicon Limited manufactures ferro alloys in India. The company was formerly known as VBC Ferro Alloys Limited and changed its name to Chrome Silicon Limited in December 2023. Chrome Silicon Limited was incorporated in 1981 and is based in Hyderabad, India.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees10

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹-918 reaches shareholders as profit, with ₹-299 left at the operating level before interest, tax and depreciation. Each of its 10 employees supports ₹10.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹10.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -10.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE12.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -99% while net margin moved -59218% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-99%

Margin effect-59218%

DalalBaazaar Score

26/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 81.7% a year

Quality vs. Valuation

Company Quality

23/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

29/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 33% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 2.3% to -64.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 0.3% to -10.8% — often a sign of competition or overexpansion.

Red Flags

9 items require attention · 7 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.27x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -293.6x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴The company is lossmakingFinancial
Net profit of -₹10 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 303.3 points, from 4.5% to -298.9%.
🔴Inventory building faster than salesFinancial
Inventory up 101% against revenue up -99% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -348.2x to -293.6x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.54 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 33% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 4.5% to -298.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 2.27x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 2.3% to -64.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -301%✓ -298.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹19 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -293.6x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -10.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹69 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

4.54x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-6.03

Loss-making

Negative earnings per share — the business is losing money

ROE

-64.8%

Weak

Weak capital efficiency

ROCE

-10.8%

Weak

Low return on total capital employed

Debt/Equity

2.27x

High

High leverage

Revenue Growth (YoY)

634.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

88.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹19 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-347.9%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.54

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.45

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

40.3 / 40.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹176 Cr	₹90 Cr	₹73 Cr	₹1 Cr	-81.7%
EBITDA	₹8 Cr	-₹18 Cr	-₹79 Cr	-₹3 Cr	—
EBITDA Margin	4.5%	-19.5%	-107.3%	-298.9%	—
PAT (Net Profit)	₹3 Cr	₹0 Cr	-₹86 Cr	-₹10 Cr	—
EPS	₹1.66	₹0.25	₹-52.42	₹-6	—
ROE	2.3%	0.4%	-343.4%	-64.8%	—
ROCE	0.3%	0.4%	-81.8%	-10.8%	—
Total Debt	₹51 Cr	₹22 Cr	₹38 Cr	₹34 Cr	-12.5%
Free Cash Flow	-₹28 Cr	-₹31 Cr	-₹3 Cr	-₹19 Cr	—

🔴 Revenue has shrunk at 81.7% a year over 3 years.

🔴 EBITDA has turned negative, from ₹8 Cr to -₹3 Cr.

🔴 EBITDA Margin has fallen from 4.5% to -298.9% over 3 years (-303.3 pts).

🔴 PAT (Net Profit) has turned negative, from ₹3 Cr to -₹10 Cr.

🔴 EPS has turned negative, from ₹1.66 to ₹-6.

🔴 ROE has fallen from 2.3% to -64.8% over 3 years (-67.1 pts).

🔴 ROCE has fallen from 0.3% to -10.8% over 3 years (-11.1 pts).

🟢 Total Debt has shrunk at 12.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹230 Cr

Total Liabilities

₹215 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹19 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

86.6%

Corporate Actions

Ex-Dividend Date

20 Sept 2012

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

6 general

Chrome Silicon Ltd (BSE:CHROME) Explained: Business Model, Industry Context and Key Factors

Kalkine India, 14 Sept

Silicon Motion Technology (NasdaqGS:SIMO) Stock Price

Simply Wall Street, 05 Oct

Chrome Silicon approves disposal of Telangana plant assets

scanx.trade, 22 Jul

CHROME Stock Price and Chart — BSE:CHROME

TradingView, 25 Jan

2026 H1 Silicon Metal Market Review and Outlook: Cost Support, Demand Pressure, and Narrowing Price Fluctuation Range [SMM Analysis]

Shanghai Metals Market, 09 Jul

Chrome Silicon reappoints PV Rao as WTD, schedules 44th AGM

scanx.trade, 22 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 7 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑