Sanmit Infra Limited

Energy — Oil & Gas Refining & Marketing · BSE

₹47.32−₹0.21 (−0.44%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sanmit Infra Limited engages in the trading of petroleum in India.

IndustryOil & Gas Refining & Marketing

SectorEnergy

Employees49

Annual revenue₹101 Cr

How does it make money?

Turns over ₹101 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 49 employees supports ₹2.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.06 Cr

Who are its competitors?

The closest listed comparisons in its industry are RELIANCE INDUSTRIES LTD, OIL AND NATURAL GAS CORP., BHARAT PETROLEUM CORP LT, INDIAN OIL CORP LTD. 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 6.2% 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 ROE15.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -28% while net margin moved -47% 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-28%

Margin effect-47%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.4% a year
✗ Profit has declined at 27.4% a year
✗ Latest-year revenue growth of -37.8% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

37/ 100

Weak

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

Valuation

53/ 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

25.0x

3Y Median

51.4x

40 monthly readings · mean 73.3x · range 28.1x–252.8x

Sector Median

6.9x

median of 4 sector peers

🟢Current valuation is approximately 51% below its 3y median of 51.4x. 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 265% above the peer median of 6.9x.

vs. its own history

Cheap

51.4x median over 40 months · -51%

vs. sector peers

Expensive

6.9x median of 4 peers · +265%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.8x

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 Attention2

Return on equity is falling
ROE has dropped from 16.3% to 5.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.5% to 6.2% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 80% over 3 years, from ₹8 Cr to ₹15 Cr.
🔴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 165% against revenue up -28% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 62% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 51% 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.
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?

A premium to the sector to defend
It trades 265% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 16.3% to 5.1%. 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.
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

1EBITDA margin holds above 4%✓ 5.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 6.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 51.4x✓ 25.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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 · 4 neutral · 4 weak

Market Cap

₹75 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.0x

Fair

Fairly valued against the generic band

P/B Ratio

1.84x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.89

Profitable

Profitable on a per-share basis

ROE

5.1%

Weak

Weak capital efficiency

ROCE

6.2%

Weak

Low return on total capital employed

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

-37.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

115.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

12.5%

Average

Average margins

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

2.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

15%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

49.3 / 49.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

26.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹140 Cr	₹94 Cr	₹143 Cr	₹101 Cr	-10.4%
EBITDA	₹7 Cr	₹8 Cr	₹5 Cr	₹6 Cr	-7.5%
EBITDA Margin	5.0%	9.0%	3.5%	5.5%	—
PAT (Net Profit)	₹5 Cr	₹4 Cr	₹2 Cr	₹2 Cr	-27.4%
EPS	₹3.3	₹2.8	₹1	₹1.3	-26.7%
ROE	16.3%	12.5%	4.3%	5.1%	—
ROCE	19.5%	16.5%	6.2%	6.2%	—
Total Debt	₹8 Cr	₹10 Cr	₹8 Cr	₹15 Cr	+21.6%
Free Cash Flow	₹1 Cr	₹1 Cr	₹3 Cr	-₹4 Cr	—

🔴 Revenue has shrunk at 10.4% a year over 3 years.

🔴 EBITDA has shrunk at 7.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.5% over 3 years.

🔴 PAT (Net Profit) has shrunk at 27.4% a year over 3 years.

🔴 EPS has shrunk at 26.7% a year over 3 years.

🔴 ROE has fallen from 16.3% to 5.1% over 3 years (-11.1 pts).

🔴 ROCE has fallen from 19.5% to 6.2% over 3 years (-13.3 pts).

🔴 Total Debt has grown at 21.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹63 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.6%

Corporate Actions

Ex-Dividend Date

20 Sept 2024

Peer Comparison

Company	P/E	ROE
RELIANCE INDUSTRIES LTD	21.9x	8.3%
OIL AND NATURAL GAS CORP.	6.4x	11.7%
BHARAT PETROLEUM CORP LT	7.3x	17.1%
INDIAN OIL CORP LTD	5.3x	15.3%

Recent News

1 positive5 general

Sanmit Infra Sets April 30, 2026 Record Date for Equity Share Consolidation

scanx.trade, 04 Apr

Compare SMR UNISOFT with

Equitymaster, 15 Oct

Sanmit Infra Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Sanmit Infra Ltd is Rated Strong Sell

MarketsMojo, 11 Oct

Sanmit Infra board approves FY26 cost audit report in Sep 25 meeting

scanx.trade, 25 Sept

Rs. 57 Dividend+ Stock Split+ Rights Issues+ Bonus Issue Next Week: 12 Major Stocks to Watch

Goodreturns, 25 AprCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Revenue growth is negative (-37.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

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

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑