Sacheta Metals Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · BSE

₹3.48₹0.00 (0.00%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Sacheta Metals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sacheta Metals Limited manufactures and exports aluminum, stainless, and mild steel houseware kitchenware utensils in India and internationally.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees115

Annual revenue₹83 Cr

How does it make money?

Turns over ₹83 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 115 employees supports ₹72.2 lakh of revenue a year, the signature of a people-led business.

EBITDA margin10.8%

Net margin2.5%

Revenue / employee₹72.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

VOLTAS LTDP/E 75.8x · ROE 7.0%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

What is its competitive advantage?Little sign of one

Returns on capital of 7.4% 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.

ROCE7.4%

ROE3.8%

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -14% while net margin moved +16% 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-14%

Margin effect+16%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.0% a year
✗ Profit has declined at 0.4% a year

Quality vs. Valuation

Company Quality

37/ 100

Weak

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

Valuation

83/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

21.8x

3Y Median

27.6x

40 monthly readings · mean 52.3x · range 21.3x–151.8x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 21% below its 3y median of 27.6x. 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 68% below the peer median of 68.5x.

vs. its own history

Cheap

27.6x median over 40 months · -21%

vs. sector peers

Cheap

68.5x median of 3 peers · -68%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.8x

P/B

0.81x

EV/EBITDA

6.8x

PEG

—

Dividend Yield

1.44%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 4.9% to 10.8% over 3 years.
Debt is being paid down
Total debt is down 16% over 3 years.
Valuation below its historical average
At 21.8x the stock trades 21% below its own median of 27.6x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 9.6% to 7.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 31% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.9% to 10.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 16% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 21% 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 68% 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?

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 9%✓ 10.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.0x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 7.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

3 good · 5 neutral · 3 weak

Market Cap

₹44 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.81x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.16

Profitable

Profitable on a per-share basis

ROE

3.8%

Weak

Weak capital efficiency

ROCE

7.4%

Weak

Low return on total capital employed

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

4.9%

Modest

Modest growth

Profit Growth (YoY)

0.0%

Modest

Slow profit growth

Dividend Yield

1.44%

Modest

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

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹3.48

Operating Margin

3.1%

Weak

Thin margins leave little room for error

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

15%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3.6 / 3.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹97 Cr	₹75 Cr	₹91 Cr	₹83 Cr	-5.0%
EBITDA	₹5 Cr	₹5 Cr	₹6 Cr	₹9 Cr	+23.6%
EBITDA Margin	4.9%	6.8%	6.5%	10.8%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹2 Cr	₹2 Cr	-0.4%
EPS	₹0.22	₹0.16	₹0.17	₹0.16	-9.5%
ROE	5.5%	3.9%	4.1%	3.8%	—
ROCE	9.6%	7.1%	7.6%	7.4%	—
Total Debt	₹23 Cr	₹17 Cr	₹19 Cr	₹19 Cr	-5.8%
Free Cash Flow	₹2 Cr	-₹1 Cr	-₹2 Cr	-₹3 Cr	—

🔴 Revenue has shrunk at 5.0% a year over 3 years.

🟢 EBITDA has grown at 23.6% a year over 3 years.

🟢 EBITDA Margin has risen from 4.9% to 10.8% over 3 years (+5.9 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-0.4% a year).

🔴 EPS has shrunk at 9.5% a year over 3 years.

🔴 ROE has fallen from 5.5% to 3.8% over 3 years (-1.7 pts).

🔴 ROCE has fallen from 9.6% to 7.4% over 3 years (-2.2 pts).

🟢 Total Debt has shrunk at 5.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹78 Cr

Total Liabilities

₹25 Cr

Total Debt

₹19 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.9%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

10 Oct 2025

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 positive5 general

Sacheta Metals Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Eskay Aluminium acquires 9,168 Sacheta Metals shares in open market

scanx.trade, 25 Aug

September purchases take Eskay Aluminium’s Sacheta Metals holding to 132,310 shares

AL Circle, 08 Sept

Eskay Aluminium acquires 0.03% stake in Sacheta Metals via open market

scanx.trade, 16 Sept

Penny stock under ₹5 sets board meeting date to consider interim dividend for FY26

Livemint, 25 SeptCapital return

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

SACHETA METALS LTD. Share Price

Upstox, 22 Mar

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong13.8/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive12/15

🟡RiskModerate5.4/10

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 9%10.8%
✗Debt / EBITDA stays below 2x2.1x
✗Free cash flow remains positive-₹3 Cr
✓Interest cover stays above 3x3.0x
✗ROCE stays above 8%7.4%