Satchmo Holdings Limited

Industrials — Conglomerates · BSE

₹3.13+₹0.08 (+2.62%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, 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, 6:02 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Satchmo Holdings Limited engages in the business of real estate development in India. It operates through Investment and Trading in Equities; Service Business of Facilities/Manpower/Catering/Restaurants Activities; and Others segments.

IndustryConglomerates

SectorIndustrials

Employees78

Annual revenue₹30 Cr

How does it make money?

Turns over ₹30 Cr a year. Of every ₹100 of sales, about ₹3935 reaches shareholders as profit, with ₹40 left at the operating level before interest, tax and depreciation. Each of its 78 employees supports ₹38.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin39.9%

Net margin3934.9%

Revenue / employee₹38.7 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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 1008.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE1008.2%

ROE1077.4%

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 -70% while net margin moved -5359% 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-70%

Margin effect-5359%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 32.9% a year

Quality vs. Valuation

Company Quality

64/ 100

Average

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.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

0.0x

2Y Median

3.3x

28 monthly readings · mean 3.0x · range 0.0x–5.0x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 99% below its 2y median of 3.3x. 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 100% below the peer median of 88.8x.

vs. its own history

Cheap

3.3x median over 28 months · -99%

vs. sector peers

Cheap

88.8x median of 3 peers · -100%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

0.0x

P/B

0.41x

EV/EBITDA

3.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 99% over 3 years.
Cash generation is improving
Free cash flow is up 152% over 3 years.
High return on capital employed
ROCE of 1008.2% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 0.0x the stock trades 99% below its own median of 3.3x.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 80.4% to 39.9% over 3 years.
Receivables growing faster than sales
Receivables are up 1055% against revenue growth of -70% — customers are taking longer to pay.

Red Flags

3 items require attention · 3 high

🔴High leverageFinancial
Debt/Equity of 5.32x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 40.5 points, from 80.4% to 39.9%.
🔴Receivables growing faster than salesFinancial
Receivables up 1055% against revenue up -70% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 1008.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 99% 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 99% 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 100% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 80.4% to 39.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.32x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 1055% against revenue up -70%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 38%✓ 39.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹63 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 1005%✓ 1008.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 3.3x✓ 0.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 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

8 good · 2 neutral · 1 weak

Market Cap

₹46 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

0.0x

Cheap

Cheap against the generic band

P/B Ratio

0.41x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹81.37

Profitable

Profitable on a per-share basis

ROE

1077.4%

Strong

Strong capital efficiency

ROCE

1008.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.32x

High

High leverage

Revenue Growth (YoY)

892.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

6367.6%

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

₹63 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹3.13

Operating Margin

-355.0%

Weak

Thin margins leave little room for error

Net Margin

3782.8%

Good

Strong bottom-line conversion

Current Ratio

1.01

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3.4 / 3.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹100 Cr	₹44 Cr	₹12 Cr	₹30 Cr	-32.9%
EBITDA	₹80 Cr	₹50 Cr	-₹6 Cr	₹12 Cr	-46.9%
EBITDA Margin	80.4%	113.3%	-54.1%	39.9%	—
PAT (Net Profit)	-₹75 Cr	₹16 Cr	₹18 Cr	₹1,189 Cr	—
EPS	₹-5.12	₹1.08	₹1.26	₹81.51	—
Total Debt	₹507 Cr	₹134 Cr	₹136 Cr	₹6 Cr	-77.4%
Free Cash Flow	₹25 Cr	₹33 Cr	₹4 Cr	₹63 Cr	+36.1%

🔴 Revenue has shrunk at 32.9% a year over 3 years.

🔴 EBITDA has shrunk at 46.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 80.4% to 39.9% over 3 years (-40.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹75 Cr to ₹1,189 Cr.

🟢 EPS has turned positive, from ₹-5.12 to ₹81.51.

🟢 Total Debt has shrunk at 77.4% a year over 3 years.

🟢 Free Cash Flow has grown at 36.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹255 Cr

Total Liabilities

₹145 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹69 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

4.3%

Insider Holding

51.4%

Corporate Actions

Ex-Dividend Date

22 Sept 2011

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 mixed5 general

Satchmo Holdings - 10 penny stocks surged up to 490% in 6 months. Do you own any?

The Economic Times, 03 May

Satchmo Holdings Q1 Results: Net Loss Widens To ₹377 Lakh

scanx.trade, 24 JulResults

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

Satchmo Holdings Ltd Valuation Shifts: From Attractive to Fair Amid Market Volatility

MarketsMojo, 20 Jul

Satchmo Holdings Limited Completes Divestment of Wholly Owned Subsidiary for ₹25 Lakh

scanx.trade, 10 Jan

Satchmo Holdings (BSE:533202) - Stock Analysis

Simply Wall Street, 27 Mar

SATCH Stock Price and Chart — BSE:SATCH

TradingView, 28 Dec

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

🟢Business QualityStrong18.2/20

🟢Financial HealthStrong13.5/20

🔴GrowthWeak2.4/20

🟢ProfitabilityStrong14.1/15

🟢ValuationAttractive13.2/15

🔴RiskHigh3.9/10

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.

This thesis breaks if

✓EBITDA margin holds above 38%39.9%
✓Free cash flow remains positive₹63 Cr
✓Debt / EBITDA stays below 2x0.5x
✓ROCE stays above 1005%1008.2%
✓Valuation vs its own median of 3.3x0.0x today