Sahyadri Industries Limited

Industrials — Building Products & Equipment · NSE

₹340.00+₹6.50 (+1.95%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, 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 both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sahyadri Industries Limited engages in the production and sale of cement sheets and accessories, trading of steel doors, and generation of wind power electricity in India and internationally. It operates in Building Material and Power Generation segments.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees784

Annual revenue₹677 Cr

How does it make money?

Turns over ₹677 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 784 employees supports ₹86.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹86.3 lakh

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?Little sign of one

Returns on capital of 10.2% 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 ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +15% while net margin moved -32% 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+15%

Margin effect-32%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.7% — barely ahead of inflation
✗ Profit has declined at 7.9% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

44/ 100

Weak

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.

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

8.3x

3Y Median

13.0x

40 monthly readings · mean 12.9x · range 9.0x–17.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 36% below its 3y median of 13.0x. 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 91% below the peer median of 88.8x.

vs. its own history

Cheap

13.0x median over 40 months · -36%

vs. sector peers

Cheap

88.8x median of 3 peers · -91%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 87% over 3 years.
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 11.1% to 7.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.7% to 10.2% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 4.08x — earnings must service borrowings before shareholders see anything.
🟡Profit is decliningFinancial
Net profit is down 22% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.3 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 87% 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 36% 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 91% 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?

Margins are being competed away
EBITDA margin has fallen from 14.2% to 9.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.08x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 4.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 11.1% to 7.1%. 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 8%✓ 9.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.7% CAGR
Latest reported year was 20.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹107 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.2%
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

6 good · 3 neutral · 2 weak

Market Cap

₹372 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.3x

Cheap

Cheap against the generic band

P/B Ratio

0.92x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹40.88

Profitable

Profitable on a per-share basis

ROE

7.1%

Weak

Weak capital efficiency

ROCE

10.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.08x

High

High leverage

Revenue Growth (YoY)

20.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

146.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.18%

Modest

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

Free Cash Flow

₹107 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.9%

Average

Average margins

Net Margin

6.2%

Average

Average bottom-line conversion

Current Ratio

2.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.50

Defensive

Steadier than the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

351.1 / 358.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹589 Cr	₹632 Cr	₹601 Cr	₹677 Cr	+4.7%
EBITDA	₹83 Cr	₹70 Cr	₹57 Cr	₹67 Cr	-7.2%
EBITDA Margin	14.2%	11.0%	9.5%	9.8%	—
PAT (Net Profit)	₹37 Cr	₹26 Cr	₹19 Cr	₹29 Cr	-7.9%
EPS	₹33.9	₹24.09	₹17.78	₹26.5	-7.9%
ROE	11.1%	7.3%	5.1%	7.1%	—
ROCE	15.7%	11.6%	8.5%	10.2%	—
Total Debt	₹124 Cr	₹116 Cr	₹78 Cr	₹17 Cr	-48.9%
Free Cash Flow	-₹30 Cr	₹16 Cr	₹35 Cr	₹107 Cr	—

🟢 Revenue has grown at 4.7% a year over 3 years.

🔴 EBITDA has shrunk at 7.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 14.2% to 9.8% over 3 years (-4.3 pts).

🔴 PAT (Net Profit) has shrunk at 7.9% a year over 3 years.

🔴 EPS has shrunk at 7.9% a year over 3 years.

🔴 ROE has fallen from 11.1% to 7.1% over 3 years (-3.9 pts).

🔴 ROCE has fallen from 15.7% to 10.2% over 3 years (-5.5 pts).

🟢 Total Debt has shrunk at 48.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹30 Cr to ₹107 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹532 Cr

Total Liabilities

₹126 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹121 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.5%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

21 Aug 2026

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

1 positive1 mixed1 negative3 general

Sahyadri Industries (SAHYADRI) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Sahyadri Industries Ltd. Share Price: Price Rise Explained

Univest, 17 AugPrice 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.

Sahyadri Industries Ltd. Peer Comparison – Compare with Others

Value Research, 03 Sept

Sahyadri Industries Q1FY27 net profit rises 146% to ₹26.52 crore

scanx.trade, 12 AugResults

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

Sahyadri Industries Trading Window Closed Oct 2026

Kalkine India, 24 Sept

Sahyadri Industries Ltd Downgraded to Buy Amid Mixed Technical Signals and Valuation Appeal

MarketsMojo, 07 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

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.

All 5 tripwires holding · see Key things to watch ↑