Safecure Services Limited

Industrials — Security & Protection Services · BSE

₹24.90+₹2.25 (+9.93%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Safecure Services Limited provides private security, e-surveillance, facility management services, event security management, and interior fit-out projects in India.

IndustrySecurity & Protection Services

SectorIndustrials

Annual revenue₹67 Cr

How does it make money?

Turns over ₹67 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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?Some evidence

ROCE of 16.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

88/ 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

3.4x

1.1Y Median

4.3x

13 monthly readings · mean 4.7x · range 3.5x–6.9x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 20% below its 1.1y median of 4.3x. 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 96% below the peer median of 88.8x.

vs. its own history

Cheap

4.3x median over 13 months · -20%

vs. sector peers

Cheap

88.8x median of 3 peers · -96%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.1x

PEG

0.23

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.21x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 42.4% to 11.8% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 20% 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 96% 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?

Returns on shareholder capital are falling
ROE has dropped from 42.4% to 11.8%. 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.
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 15%✓ 17.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✓ 3.9x
How much operating profit can fall before interest stops being comfortably covered.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

6 good · 2 neutral · 3 weak

Market Cap

₹25 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.4x

Cheap

Cheap against the generic band

P/B Ratio

0.49x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.27

Profitable

Profitable on a per-share basis

ROE

16.7%

Strong

Strong capital efficiency

ROCE

16.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

-25.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-52.8%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

9.0%

Good

Assets are working hard

Operating Margin

11.5%

Average

Average margins

Net Margin

9.0%

Average

Average bottom-line conversion

Current Ratio

3.50

Comfortable

Healthy short-term liquidity

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

23.6 / 22.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹73 Cr	₹67 Cr	—
EBITDA	₹9 Cr	₹11 Cr	₹13 Cr	₹11 Cr	+7.5%
EBITDA Margin	—	—	17.1%	17.1%	—
PAT (Net Profit)	₹4 Cr	₹6 Cr	₹6 Cr	₹6 Cr	+14.9%
EPS	₹3.96	₹5.66	₹6.13	—	—
ROE	42.4%	37.5%	29.1%	11.8%	—
ROCE	—	—	33.3%	16.0%	—
Total Debt	—	—	₹21 Cr	₹10 Cr	—
Free Cash Flow	₹5 Cr	-₹1 Cr	-₹4 Cr	-₹10 Cr	—

🟢 EBITDA has grown at 7.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 17.1% over 3 years.

🟢 PAT (Net Profit) has grown at 14.9% a year over 3 years.

🔴 ROE has fallen from 42.4% to 11.8% over 3 years (-30.6 pts).

🔴 ROCE has fallen from 33.3% to 16.0% over 3 years (-17.3 pts).

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹67 Cr

Total Liabilities

₹16 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.6%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

6 general

Safecure Services Limited Share Price - Live SAFECURE Stock Price & Chart

Upstox, 05 May

Safecure Services reports 100% vote in favour at 14th AGM

scanx.trade, 25 Sept

Weak market debut: Safecure Services shares list at 20% discount to SME IPO price

Moneycontrol.com, 06 Nov

Safecure Services (BSE:544596) - Stock Analysis

Simply Wall Street, 07 Nov

Safecure Services IPO 2025: Date, Price, GMP & Review - Opens Oct 29

IndiaIPO, 29 Oct

Safecure Services IPO: GMP, price band among key details to know before subscription

The Economic Times, 29 Oct

Watch Items

Revenue growth is negative (-25.4%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Valuation

MiddlingProfitability

WeakRisk

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑