SBL Infratech Limited

Real Estate — Real Estate - Development · BSE

₹52.00+₹1.50 (+2.97%)

DalalBaazaar Score

48 / 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: The business is earning a fairly low return on the money invested in it, 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, 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 SBL Infratech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SBL Infratech Limited is engaged in the trading of agricultural products and allied agricultural storage activities. The company was incorporated in 2015 and is based in Ahmedabad, India.

IndustryReal Estate - Development

SectorReal Estate

Employees5

Annual revenue₹36 Cr

How does it make money?

Turns over ₹36 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹7.22 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin0.6%

Net margin0.4%

Revenue / employee₹7.22 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

DLF LIMITEDP/E 36.6x · ROE 10.3%

GODREJ PROPERTIES LTDP/E 30.2x · ROE 8.4%

OBEROI REALTY LIMITEDP/E 23.5x · ROE 14.7%

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%

ROE4.0%

Peer median ROE10.3%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.54 — 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

49/ 100

Average

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

Valuation

42/ 100

Expensive

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

273.7x

2Y Median

231.1x

28 monthly readings · mean 246.1x · range 148.7x–422.4x

Sector Median

30.2x

median of 3 sector peers

⚠️Current valuation is approximately 18% above its 2y median of 231.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 807% above the peer median of 30.2x.

vs. its own history

Fair

231.1x median over 28 months · +18%

vs. sector peers

Expensive

30.2x median of 3 peers · +807%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

273.7x

P/B

1.06x

EV/EBITDA

21.2x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -11.5% to 4.0%.
Return on capital is rising
ROCE has improved from -20.9% to 3.9%.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 4.64x — 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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 4.64x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 807% above the peer median. That premium needs a reason that persists, or it closes.
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
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 -1%✓ 0.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 3.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 231.1x✓ 273.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 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

₹4 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

273.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.06x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.19

Profitable

Profitable on a per-share basis

ROE

4.0%

Weak

Weak capital efficiency

ROCE

3.9%

Weak

Low return on total capital employed

Debt/Equity

4.64x

High

High leverage

Revenue Growth (YoY)

51.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-25.8%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹52

ROA

1.1%

Weak

Assets generate little profit

Operating Margin

1.0%

Weak

Thin margins leave little room for error

Net Margin

0.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.35

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.54

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

42.8 / 46.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

73.7

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹24 Cr	₹36 Cr	—
EBITDA	-₹1 Cr	-₹0 Cr	₹0 Cr	₹0 Cr	—
EBITDA Margin	—	—	0.9%	0.6%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	—
EPS	₹-0.5	₹0.13	₹0.23	—	—
ROE	-11.5%	2.9%	4.8%	4.0%	—
ROCE	-20.9%	-5.8%	4.6%	3.9%	—
Total Debt	—	₹0 Cr	₹0 Cr	₹0 Cr	—
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹1 Cr	-₹0 Cr	—

🟢 EBITDA has turned positive, from -₹1 Cr to ₹0 Cr.

🟡 EBITDA Margin has held roughly flat at 0.6% over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 ROE has risen from -11.5% to 4.0% over 3 years (+15.4 pts).

🟢 ROCE has risen from -20.9% to 3.9% over 3 years (+24.8 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6 Cr

Total Liabilities

₹2 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

46.9%

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

6 general

SBL Infratech Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

SBL Infratech sets Sep 22 record date for AGM with name change proposal

scanx.trade, 07 Sept

52 Week High Shares BSE | 52 Week High Today | Shares Trading 52 Week High BSE

Livemint, 16 Oct

SBL Infratech board approves office shift and name change NOC

scanx.trade, 06 Jul

SBL Infratech (BSE:543366) - Stock Analysis

Simply Wall Street, 27 Mar

SBL Infratech Limited Share Price

Upstox, 12 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak8.7/20

🟡Financial HealthAdequate10.6/20

🟡GrowthModest10/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair8.3/15

🔴RiskHigh3.7/10

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

This thesis breaks if

✓EBITDA margin holds above -1%0.6%
✗Free cash flow remains positive-₹0 Cr
✓Debt / EBITDA stays below 2x0.9x
✗ROCE stays above 8%3.9%
✓Valuation vs its own median of 231.1x273.7x today