Creative Castings Limited

Basic Materials — Steel · BSE

₹600.05+₹4.05 (+0.68%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:55 pm

Understanding the Business

Company site ↗

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

What does this company do?

Creative Castings Limited engages in the manufacture and sale of machined and unmachined investment castings in India.

IndustrySteel

SectorBasic Materials

Employees94

Annual revenue₹47 Cr

How does it make money?

Turns over ₹47 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 94 employees supports ₹50.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹50.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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 13.3% 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 ROE10.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -4% while net margin moved -5% 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-4%

Margin effect-5%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.4% a year
✗ Profit has declined at 3.0% a year

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

73/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

15.0x

3Y Median

20.1x

40 monthly readings · mean 19.4x · range 13.4x–23.2x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 25% below its 3y median of 20.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 18% below the peer median of 18.2x.

vs. its own history

Cheap

20.1x median over 40 months · -25%

vs. sector peers

Fair

18.2x median of 4 peers · -18%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

11.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 13.8% to 9.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.2% to 13.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 46% against revenue up -4% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 25% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹7 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 13.8% to 9.6%. 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.
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 13%✓ 14.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 10%✓ 13.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 20.1x✓ 15.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

7 good · 4 neutral · 0 weak

Market Cap

₹78 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.0x

Cheap

Cheap against the generic band

P/B Ratio

1.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹40.08

Profitable

Profitable on a per-share basis

ROE

9.6%

Moderate

Moderate capital efficiency

ROCE

13.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

47.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

113.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.08%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

15.5%

Good

Healthy core-business profitability

Net Margin

9.8%

Average

Average bottom-line conversion

Current Ratio

5.86

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.20

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

609.9 / 625.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

58.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹49 Cr	₹51 Cr	₹42 Cr	₹47 Cr	-1.4%
EBITDA	₹7 Cr	₹7 Cr	₹6 Cr	₹7 Cr	-0.3%
EBITDA Margin	14.2%	14.0%	14.3%	14.7%	—
PAT (Net Profit)	₹5 Cr	₹5 Cr	₹4 Cr	₹4 Cr	-3.0%
EPS	₹36.83	₹38.97	₹27.92	₹33.62	-3.0%
ROE	13.8%	13.0%	8.6%	9.6%	—
ROCE	18.2%	16.5%	12.4%	13.3%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+4.6%
Free Cash Flow	-₹0 Cr	₹0 Cr	₹4 Cr	₹7 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.4% a year).

🟡 EBITDA has been broadly flat over 3 years (-0.3% a year).

🟡 EBITDA Margin has held roughly flat at 14.7% over 3 years.

🔴 PAT (Net Profit) has shrunk at 3.0% a year over 3 years.

🔴 EPS has shrunk at 3.0% a year over 3 years.

🔴 ROE has fallen from 13.8% to 9.6% over 3 years (-4.2 pts).

🔴 ROCE has fallen from 18.2% to 13.3% over 3 years (-4.8 pts).

🔴 Total Debt has grown at 4.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹55 Cr

Total Liabilities

₹9 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.6%

Corporate Actions

Dividend Rate

₹12.5

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

5 positive1 general

Creative Castings shareholders approve ₹12.50 dividend, director re-appointment

scanx.trade, 26 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Creative Castings net profit surges 114% in Q1FY27, recommends 125% dividend

scanx.trade, 01 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

JINDAL SUPREME (INDIA) LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 24 Sept

Clean Science & Technology consolidated net profit rises 4.70% in the June 2026 quarter

Business Standard, 01 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Dividend stocks alert, record date: Last chance to buy Cochin Shipyard, Anupam Rasayan, Balu Forge, and others | List

Livemint, 17 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Rs. 257.54/sh Dividend Stocks Today: Cochin Shipyard and 94 more Stocks to Watch on September 18

Goodreturns, 18 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑