Hisar Metal Industries Limited

Basic Materials — Steel · NSE

₹141.11−₹0.29 (−0.21%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Hisar Metal Industries Limited manufactures and sells cold rolled precision stainless steel strips, stainless steel welded tubes and pipes, and stainless-steel plumbing pipes and fittings in India. It also exports its products.

IndustrySteel

SectorBasic Materials

Employees220

Annual revenue₹262 Cr

How does it make money?

Turns over ₹262 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 220 employees supports ₹1.19 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.19 Cr

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 12.0% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -5% while net margin moved -67% 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-5%

Margin effect-67%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.7% a year
✗ Profit has declined at 32.4% a year

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

62/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

15.7x

3Y Median

16.9x

40 monthly readings · mean 18.3x · range 8.0x–31.9x

Sector Median

18.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 16.9x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 18.2x.

vs. its own history

Fair

16.9x median over 40 months · -7%

vs. sector peers

Fair

18.2x median of 4 peers · -13%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 20.2% to 5.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.0% to 12.0% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 2 high · 4 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🔴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.
🟡Debt is increasingFinancial
Total debt is up 26% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 69% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 3.0 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 20% against revenue up -5% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 8.2% to 5.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 6.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 20% against revenue up -5%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 20.2% to 5.1%. 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 3%✓ 5.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 9%✓ 12.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 6 neutral · 1 weak

Market Cap

₹76 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.16x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.96

Profitable

Profitable on a per-share basis

ROE

5.1%

Weak

Weak capital efficiency

ROCE

12.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.32x

Moderate

Moderate leverage

Revenue Growth (YoY)

3.7%

Modest

Modest growth

Profit Growth (YoY)

326.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.71%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.9%

Average

Average margins

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.78

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

148.2 / 152.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

7.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹276 Cr	₹241 Cr	₹244 Cr	₹262 Cr	-1.7%
EBITDA	₹23 Cr	₹17 Cr	₹15 Cr	₹14 Cr	-15.4%
EBITDA Margin	8.2%	6.9%	6.2%	5.3%	—
PAT (Net Profit)	₹11 Cr	₹6 Cr	₹3 Cr	₹3 Cr	-32.4%
EPS	₹20.28	₹11.98	₹5.88	₹6.27	-32.4%
ROE	20.2%	10.8%	5.1%	5.1%	—
ROCE	27.0%	17.1%	14.3%	12.0%	—
Total Debt	₹68 Cr	₹81 Cr	₹70 Cr	₹87 Cr	+8.1%
Free Cash Flow	₹15 Cr	₹4 Cr	₹13 Cr	₹11 Cr	-11.9%

🟡 Revenue has been broadly flat over 3 years (-1.7% a year).

🔴 EBITDA has shrunk at 15.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.2% to 5.3% over 3 years (-3.0 pts).

🔴 PAT (Net Profit) has shrunk at 32.4% a year over 3 years.

🔴 EPS has shrunk at 32.4% a year over 3 years.

🔴 ROE has fallen from 20.2% to 5.1% over 3 years (-15.0 pts).

🔴 ROCE has fallen from 27.0% to 12.0% over 3 years (-15.0 pts).

🔴 Total Debt has grown at 8.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 11.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹164 Cr

Total Liabilities

₹98 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.6%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

17 Aug 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

3 positive3 general

Only Three Days Left To Cash In On Hisar Metal Industries' (NSE:HISARMETAL) Dividend

Simply Wall Street, 13 AugCapital return

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

Hisar Metal Industries vs Nifty 50: Returns Compared

Univest, 25 Sept

Hisar Metal Industries Q1 Results: Net profit surges 329% YoY to ₹1.8 crore

scanx.trade, 08 AugResults

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

Hisar Metal Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Hisar Metal (BSE:HISARMETAL): Stainless Strip Processing

Kalkine India, 11 Sept

Hisar Metal Industries FY26 Results: Net Profit rises to ₹338 Lakhs, Revenue up to ₹26,328 Lakhs YoY

scanx.trade, 03 AugResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health · Risk

WeakBusiness Quality · Growth · Profitability

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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑