Sam Industries Ltd.

Real Estate — Real Estate Services · BSE

₹34.81₹0.00 (0.00%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, 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, 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, 6:02 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 Sam Industries Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sam Industries Ltd. engages in the real estate business in India. The company operates through the Real Estate Division and Investment Division segments.

IndustryReal Estate Services

SectorReal Estate

Employees8

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹38 reaches shareholders as profit, with ₹53 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹1.62 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin53.3%

Net margin37.5%

Revenue / employee₹1.62 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

DLF LIMITEDP/E 36.6x · ROE 10.3%

GODREJ PROPERTIES LTDP/E 30.2x · ROE 8.4%

OBEROI REALTY LIMITEDP/E 23.5x · ROE 14.7%

What is its competitive advantage?Little sign of one

Returns on capital of 7.9% 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.

ROCE7.9%

ROE6.4%

Peer median ROE10.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -49% while net margin moved +77% 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-49%

Margin effect+77%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 20.2% a year
✗ Profit has declined at 3.3% a year
✗ Profit fell 71.2% in the latest year

Quality vs. Valuation

Company Quality

41/ 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

10.3x

3Y Median

13.9x

40 monthly readings · mean 12.8x · range 6.2x–21.8x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 25% below its 3y median of 13.9x. 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 66% below the peer median of 30.2x.

vs. its own history

Cheap

13.9x median over 40 months · -25%

vs. sector peers

Cheap

30.2x median of 3 peers · -66%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.3x

P/B

0.51x

EV/EBITDA

10.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 33.6% to 53.3% over 3 years.
Valuation below its historical average
At 10.3x the stock trades 25% below its own median of 13.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Debt is rising
Total debt is up 11411% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 9.5% to 6.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 12.6% to 7.9% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.42 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 11411% over 3 years, from ₹0 Cr to ₹32 Cr.
🔴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.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.42 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 33.6% to 53.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 25% 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 66% 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 4.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 9.5% to 6.4%. 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.
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 51%✓ 53.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 7.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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 · 2 neutral · 5 weak

Market Cap

₹39 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.3x

Cheap

Cheap against the generic band

P/B Ratio

0.51x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.37

Profitable

Profitable on a per-share basis

ROE

6.4%

Weak

Weak capital efficiency

ROCE

7.9%

Weak

Low return on total capital employed

Debt/Equity

0.42x

Low

Conservative leverage

Revenue Growth (YoY)

-4.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-71.2%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹34.81

Operating Margin

43.2%

Good

Healthy core-business profitability

Net Margin

20.2%

Good

Strong bottom-line conversion

Current Ratio

0.42

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.11

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

36.6 / 38.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹26 Cr	₹10 Cr	₹14 Cr	₹13 Cr	-20.2%
EBITDA	₹9 Cr	₹13 Cr	₹6 Cr	₹7 Cr	-6.9%
EBITDA Margin	33.6%	130.8%	45.3%	53.3%	—
PAT (Net Profit)	₹5 Cr	₹11 Cr	₹3 Cr	₹5 Cr	-3.3%
EPS	₹4.87	₹9.67	₹2.83	₹4.4	-3.3%
ROE	9.5%	15.8%	4.4%	6.4%	—
ROCE	12.6%	14.1%	5.9%	7.9%	—
Total Debt	₹0 Cr	₹27 Cr	₹33 Cr	₹32 Cr	+386.4%
Free Cash Flow	₹12 Cr	-₹30 Cr	-₹34 Cr	-₹3 Cr	—

🔴 Revenue has shrunk at 20.2% a year over 3 years.

🔴 EBITDA has shrunk at 6.9% a year over 3 years.

🟢 EBITDA Margin has risen from 33.6% to 53.3% over 3 years (+19.6 pts).

🔴 PAT (Net Profit) has shrunk at 3.3% a year over 3 years.

🔴 EPS has shrunk at 3.3% a year over 3 years.

🔴 ROE has fallen from 9.5% to 6.4% over 3 years (-3.0 pts).

🔴 ROCE has fallen from 12.6% to 7.9% over 3 years (-4.7 pts).

🔴 Total Debt has grown at 386.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹12 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹119 Cr

Total Liabilities

₹43 Cr

Total Debt

₹32 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹15 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

90.2%

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 positive1 mixed4 general

Sam Industries passes all resolutions at 32nd AGM held virtually

scanx.trade, 01 Oct

SJP ULTRASONICS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 08 Oct

Lords Mark Industries reports consolidated net profit of Rs 33.18 crore in the June 2026 quarter

Business Standard, 13 AugResults

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

Potassium Nitrate Market Size, Share | CAGR of 3.5%

Market.us, 25 May

Prostarm Info Systems consolidated net profit rises 17.08% in the March 2026 quarter

Business Standard, 23 MayResults

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

Sam Altman Stocks: 7 Companies Set to Cash In on the OpenAI Empire

MarketWise, 08 May

Watch Items

Revenue growth is negative (-4.5%) 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

🟡Business QualityAdequate11.5/20

🟡Financial HealthAdequate9.3/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate7.5/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

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

This thesis breaks if

✓EBITDA margin holds above 51%53.3%
✗Debt / EBITDA falls below 3x4.6x
✗Free cash flow remains positive-₹3 Cr
✓Interest cover stays above 3x3.1x
✗ROCE stays above 8%7.9%