Satia Industries Limited

Basic Materials — Paper & Paper Products · NSE

₹68.01+₹0.71 (+1.05%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Satia Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Satia Industries Limited engages in the manufacture and sale of writing and printing paper in India and internationally. The company operates through Paper, Cogeneration, and Agriculture divisions.

IndustryPaper & Paper Products

SectorBasic Materials

Employees2,624

Annual revenue₹1,452 Cr

How does it make money?

Turns over ₹1,452 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 2,624 employees supports ₹55.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin13.8%

Net margin2.8%

Revenue / employee₹55.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Little sign of one

Returns on capital of 3.9% 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.

ROCE3.9%

ROE3.8%

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 -23% while net margin moved -72% 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-23%

Margin effect-72%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 8.3% a year
✗ Profit has declined at 40.3% a year
✗ Profit fell 65.5% in the latest year

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

54/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.62x

EV/EBITDA

4.9x

PEG

—

Dividend Yield

0.59%

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 28% over 3 years.
Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 22.4% to 13.8% over 3 years.
Return on equity is falling
ROE has dropped from 26.2% to 3.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.1% to 3.9% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.6 points, from 22.4% to 13.8%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 5.5x to 2.5x.
🟡Profit is decliningFinancial
Net profit is down 79% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 28% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹20 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 22.4% to 13.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 26.2% to 3.8%. 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.

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

1EBITDA margin holds above 12%✓ 13.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 2.5x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹20 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 3.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 2 neutral · 6 weak

Market Cap

₹680 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.62x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.78

Loss-making

Negative earnings per share — the business is losing money

ROE

3.8%

Weak

Weak capital efficiency

ROCE

3.9%

Weak

Low return on total capital employed

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

-2.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-65.5%

Falling

Profits are shrinking

Dividend Yield

0.59%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹20 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹68.01

Operating Margin

6.0%

Average

Average margins

Net Margin

-0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.71

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.01

Defensive

Steadier than the market

52W Range Position

61%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

68.2 / 64.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,884 Cr	₹1,721 Cr	₹1,512 Cr	₹1,452 Cr	-8.3%
EBITDA	₹422 Cr	₹434 Cr	₹283 Cr	₹200 Cr	-22.0%
EBITDA Margin	22.4%	25.2%	18.7%	13.8%	—
PAT (Net Profit)	₹192 Cr	₹211 Cr	₹119 Cr	₹41 Cr	-40.3%
EPS	₹19.22	₹21.12	₹11.86	₹4.09	-40.3%
ROE	26.2%	22.7%	11.3%	3.8%	—
ROCE	20.1%	24.5%	10.4%	3.9%	—
Total Debt	₹436 Cr	₹319 Cr	₹244 Cr	₹313 Cr	-10.5%
Free Cash Flow	₹79 Cr	₹182 Cr	₹149 Cr	₹20 Cr	-36.7%

🔴 Revenue has shrunk at 8.3% a year over 3 years.

🔴 EBITDA has shrunk at 22.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 22.4% to 13.8% over 3 years (-8.6 pts).

🔴 PAT (Net Profit) has shrunk at 40.3% a year over 3 years.

🔴 EPS has shrunk at 40.3% a year over 3 years.

🔴 ROE has fallen from 26.2% to 3.8% over 3 years (-22.5 pts).

🔴 ROCE has fallen from 20.1% to 3.9% over 3 years (-16.3 pts).

🟢 Total Debt has shrunk at 10.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 36.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,558 Cr

Total Liabilities

₹470 Cr

Total Debt

₹313 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹233 Cr

Capex

-₹213 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.8%

Corporate Actions

Dividend Rate

₹0.4

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive3 mixed1 negative1 general

Satia Industries Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 11 AugAnalyst view

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

SATIA Forecast — Price Target — Prediction for 2027

TradingView, 30 SeptAnalyst view

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

Only Three Days Left To Cash In On Satia Industries' (NSE:SATIA) Dividend

Simply Wall Street, 19 SeptCapital return

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

Satia Industries Q4 Net Profit Drops 83.6% to ₹5.8 Crore on Steady Revenues

Sahi, 23 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Satia Industries restarts Paper Machine-3 at Rupana facility

scanx.trade, 08 Oct

Why Is Satia Industries Share Price Falling Key Reasons 2026

Univest, 26 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.

Watch Items

Revenue growth is negative (-2.5%) 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.

DalalBaazaar Thesis

🔴Business QualityWeak6.2/20

🟢Financial HealthStrong14.7/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak3.4/15

🟡ValuationFair7.1/15

🟡RiskModerate5.2/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 12%13.8%
✗Interest cover stays above 3x2.5x
✓Free cash flow remains positive₹20 Cr
✓Debt / EBITDA stays below 2x1.6x
✗ROCE stays above 8%3.9%