Sampann Utpadan India Limited

Basic Materials — Specialty Chemicals · NSE

₹23.58+₹0.24 (+1.03%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sampann Utpadan India Limited manufactures and sells reclaimed rubber products in India. It operates through the Non-Conventional Energy and Reclaimed Rubber segments.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees90

Annual revenue₹135 Cr

How does it make money?

Turns over ₹135 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 90 employees supports ₹1.50 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.50 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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 8.4% 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.

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +133% while net margin moved -272% 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+133%

Margin effect-272%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.41 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

75/ 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

16.4x

1.3Y Median

28.5x

16 monthly readings · mean 27.4x · range 16.8x–42.2x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 43% below its 1.3y median of 28.5x. 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 59% below the peer median of 40.4x.

vs. its own history

Cheap

28.5x median over 16 months · -43%

vs. sector peers

Cheap

40.4x median of 4 peers · -59%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 6.1% to 12.1% over 3 years.
Return on equity is rising
ROE has improved from -28.0% to 14.8%.
Return on capital is rising
ROCE has improved from -1.5% to 8.4%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.02x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Inventory building faster than salesFinancial
Inventory up 186% against revenue up 133% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 20% 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 6.1% to 12.1%. 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 43% 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 59% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.9x 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
3 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

1Revenue growth stays above 24% a year✓ 32.6% CAGR
Latest reported year was 27.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 5.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹20 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 8.4%
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

₹121 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.4x

Fair

Fairly valued against the generic band

P/B Ratio

2.42x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.44

Profitable

Profitable on a per-share basis

ROE

20.7%

Strong

Strong capital efficiency

ROCE

8.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.02x

High

High leverage

Revenue Growth (YoY)

27.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-6.7%

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

-₹20 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

4.4%

Average

Average asset productivity

Operating Margin

7.3%

Average

Average margins

Net Margin

4.6%

Average

Average bottom-line conversion

Current Ratio

1.99

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

23.9 / 24.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹58 Cr	₹71 Cr	₹93 Cr	₹135 Cr	+32.6%
EBITDA	₹4 Cr	₹5 Cr	₹4 Cr	₹16 Cr	+66.9%
EBITDA Margin	6.1%	7.2%	4.4%	12.1%	—
PAT (Net Profit)	-₹2 Cr	-₹1 Cr	₹4 Cr	₹7 Cr	—
EPS	₹-0.41	₹-0.21	₹0.98	₹1.39	—
ROE	-28.0%	-16.8%	22.0%	14.8%	—
ROCE	-1.5%	0.1%	6.2%	8.4%	—
Total Debt	₹89 Cr	₹97 Cr	₹96 Cr	₹96 Cr	+2.6%
Free Cash Flow	-₹4 Cr	-₹8 Cr	-₹7 Cr	-₹20 Cr	—

🟢 Revenue has grown at 32.6% a year over 3 years.

🟢 EBITDA has grown at 66.9% a year over 3 years.

🟢 EBITDA Margin has risen from 6.1% to 12.1% over 3 years (+6.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹2 Cr to ₹7 Cr.

🟢 EPS has turned positive, from ₹-0.41 to ₹1.39.

🟢 ROE has risen from -28.0% to 14.8% over 3 years (+42.8 pts).

🟢 ROCE has risen from -1.5% to 8.4% over 3 years (+9.9 pts).

🔴 Total Debt has grown at 2.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹151 Cr

Total Liabilities

₹105 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹19 Cr

Shareholding (proxy)

Institutional Holding

10.3%

Insider Holding

63.8%

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive3 mixed2 general

Sampann Utpadan India Share Price Target 2026: Rs 33.1 Analyst Forecast

Univest, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Sampann Utpadan India SAMPANN Trading Window Closure Q2 FY27

Kalkine India, 24 SeptResults

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

Sampann Utpadan passes all resolutions at 16th AGM with full support

scanx.trade, 30 Sept

Sampann Utpadan India consolidated net profit rises 12.02% in the June 2026 quarter

Business Standard, 29 JulResults

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

Why Is Sampann Utpadan India Share Price Falling Key Reasons 2026

Univest, 30 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Sampann Utpadan schedules 16th AGM; approves revised ED pay

scanx.trade, 29 Sept

Watch Items

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

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality · Financial Health

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

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑