Sanblue Corporation Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹34.13+₹1.62 (+4.98%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sanblue Corporation Limited engages in the trading business in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees3

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹1.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.06 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 0.5% 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 ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -16% while net margin moved -67% 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-16%

Margin effect-67%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.6% a year
✗ Profit has declined at 34.9% a year
✗ Profit fell 42.3% in the latest year

Quality vs. Valuation

Company Quality

33/ 100

Weak

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

Valuation

49/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

79.4x

3Y Median

73.6x

40 monthly readings · mean 69.4x · range 18.4x–133.1x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 73.6x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Fair

73.6x median over 40 months · +8%

vs. sector peers

Fair

69.2x median of 4 peers · +15%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

84.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 12.5 points, from 18.7% to 6.2%.
🟡Profit is decliningFinancial
Net profit is down 72% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 18.7% to 6.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 4%✓ 6.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 0.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 73.6x✓ 79.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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 · 3 neutral · 5 weak

Market Cap

₹17 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

79.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.48x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.43

Profitable

Profitable on a per-share basis

ROE

0.6%

Weak

Weak capital efficiency

ROCE

0.5%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

336.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-42.3%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-3.7%

Weak

Thin margins leave little room for error

Net Margin

4.9%

Average

Average bottom-line conversion

Current Ratio

49.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.18

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

29.3 / 28.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

94.5

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹1 Cr	₹2 Cr	₹3 Cr	-5.6%
EBITDA	₹1 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-34.5%
EBITDA Margin	18.7%	24.9%	25.1%	6.2%	—
PAT (Net Profit)	₹1 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-34.9%
EPS	₹1.38	₹0.51	₹0.66	₹0.38	-34.9%
ROE	1.7%	0.4%	0.6%	0.6%	—
ROCE	1.5%	0.5%	0.7%	0.5%	—
Free Cash Flow	₹0 Cr	-₹1 Cr	-₹0 Cr	-₹2 Cr	—

🔴 Revenue has shrunk at 5.6% a year over 3 years.

🔴 EBITDA has shrunk at 34.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.7% to 6.2% over 3 years (-12.5 pts).

🔴 PAT (Net Profit) has shrunk at 34.9% a year over 3 years.

🔴 EPS has shrunk at 34.9% a year over 3 years.

🔴 ROE has fallen from 1.7% to 0.6% over 3 years (-1.1 pts).

🔴 ROCE has fallen from 1.5% to 0.5% over 3 years (-1.0 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹38 Cr

Total Liabilities

₹4 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

86.6%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

Sanblue shareholders approve Jose Daniel re-appointment as MD & CEO for 5 years

scanx.trade, 26 Sept

SANBLUE CORPORATION LTD. Share Price

Upstox, 11 Apr

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Simply Wall Street, 14 Jan

PRADHIN Stock Price and Chart — BSE:PRADHIN

TradingView, 05 Jan

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TradingView, 08 Aug

Sanjiv Dhireshbhai Shah Portfolio - Top Stocks List

Alice Blue, 25 Mar

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑