Saboo Sodium Chloro Limited

Consumer Defensive — Packaged Foods · BSE

₹12.19+₹0.39 (+3.31%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Saboo Sodium Chloro Limited manufactures and sells salt in India. The company offers salt under the Surya, Saboo, Himalayan, and Tota brands for chloro alkali, fisheries, and textiles and dying industries.

IndustryPackaged Foods

SectorConsumer Defensive

Annual revenue₹64 Cr

How does it make money?

Turns over ₹64 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

EBITDA margin6.3%

Net margin0.4%

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

TATA CONSUMER PRODUCT LTDP/E 59.3x · ROE 7.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

What is its competitive advantage?Little sign of one

Returns on capital of 3.5% 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.

ROCE3.5%

ROE0.5%

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +30% while net margin moved +108% 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+30%

Margin effect+108%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.5% is weak

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

76/ 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

32.1x

3Y Median

856.6x

40 monthly readings · mean 852.2x · range 525.9x–1361.6x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 96% below its 3y median of 856.6x. 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 38% below the peer median of 51.7x.

vs. its own history

Cheap

856.6x median over 40 months · -96%

vs. sector peers

Cheap

51.7x median of 4 peers · -38%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

32.1x

P/B

1.08x

EV/EBITDA

20.6x

PEG

0.82

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Valuation below its historical average
At 32.1x the stock trades 96% below its own median of 856.6x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 83% over 3 years — worth checking what it funded.
Inventory building faster than sales
Inventory is up 89% against revenue growth of 30% — stock may not be moving.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 83% over 3 years, from ₹17 Cr to ₹32 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🟡Inventory building faster than salesFinancial
Inventory up 89% against revenue up 30% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 96% 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.
Cheaper than its peers
It trades 38% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

The debt load needs earnings to hold up
Debt is 7.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 4%✓ 6.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 7.9x
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✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 7% a year✓ 9.0% CAGR
Latest reported year was -0.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹6 Cr
Profit that never becomes cash eventually stops being profit.

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 · 4 neutral · 3 weak

Market Cap

₹51 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.08x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.38

Profitable

Profitable on a per-share basis

ROE

0.5%

Weak

Weak capital efficiency

ROCE

3.5%

Weak

Low return on total capital employed

Debt/Equity

0.67x

Moderate

Moderate leverage

Revenue Growth (YoY)

-0.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

123.8%

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

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹12.19

Operating Margin

15.0%

Good

Healthy core-business profitability

Net Margin

2.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

13.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

11.9 / 12.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹49 Cr	₹52 Cr	₹55 Cr	₹64 Cr	+9.0%
EBITDA	₹4 Cr	₹3 Cr	₹4 Cr	₹4 Cr	+2.5%
EBITDA Margin	7.6%	6.6%	7.8%	6.3%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+39.1%
ROE	0.2%	0.5%	0.7%	0.5%	—
ROCE	3.8%	4.2%	3.5%	3.5%	—
Total Debt	₹17 Cr	₹17 Cr	₹22 Cr	₹32 Cr	+22.3%
Free Cash Flow	-₹4 Cr	₹5 Cr	-₹13 Cr	₹6 Cr	—

🟢 Revenue has grown at 9.0% a year over 3 years.

🟢 EBITDA has grown at 2.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.6% to 6.3% over 3 years (-1.3 pts).

🟢 PAT (Net Profit) has grown at 39.1% a year over 3 years.

🟡 ROE has held roughly flat at 0.5% over 3 years.

🟡 ROCE has held roughly flat at 3.5% over 3 years.

🔴 Total Debt has grown at 22.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹86 Cr

Total Liabilities

₹39 Cr

Total Debt

₹32 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.3%

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

1 positive3 mixed2 general

Saboo Sodium Chloro posts FY26 profit, re-appoints CFO

scanx.trade, 13 Oct

Saboo Sodium Chloro Share Price Gains 1.89% After Q1 Results

Univest, 31 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Saboo Sodium Chloro closes trading window ahead of Q2FY27 results

scanx.trade, 26 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

SABOO SODIUM CHLORO LTD. Share Price

Upstox, 03 Apr

Q1 results 2026: Swiggy to IRFC among companies to declare Q1 results today; full list here

Livemint, 30 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Saboo Sodium Chloro Subsidiary Acquires Additional Land in Udaipur, Expands Samskara Project to 29,370 Square Meters

scanx.trade, 14 AprOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Watch Items

Revenue growth is negative (-0.1%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate11.8/20

🟢GrowthStrong13.3/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive10.9/15

🔴RiskHigh4.4/10

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

This thesis breaks if

✓EBITDA margin holds above 4%6.3%
✗Debt / EBITDA falls below 3x7.9x
✗Interest cover stays above 3x1.2x
✓Revenue growth stays above 7% a year9.0% CAGR
✓Free cash flow remains positive₹6 Cr