Shri Balaji Valve Components Limited

Industrials — Specialty Industrial Machinery · BSE

₹134.00₹0.00 (0.00%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shri Balaji Valve Components Limited engages in the manufacturing of ready-to-assemble valve components in India, Africa, Asia, North America, South America, Europe, Australia, and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees181

Annual revenue₹88 Cr

How does it make money?

Turns over ₹88 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 181 employees supports ₹48.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹48.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA 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?Some evidence

ROCE of 19.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +40% while net margin moved -5% 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+40%

Margin effect-5%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.57 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

75/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.1x

3Y Median

15.0x

35 monthly readings · mean 17.3x · range 7.7x–31.6x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 13% below its 3y median of 15.0x. 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 80% below the peer median of 66.2x.

vs. its own history

Fair

15.0x median over 35 months · -13%

vs. sector peers

Cheap

66.2x median of 4 peers · -80%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.4x

PEG

1.35

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 20% over 3 years.
Cash generation is improving
Free cash flow is up 172% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 81.4% to 16.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 39.1% to 19.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.3% 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 20% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 80% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 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?

Returns on shareholder capital are falling
ROE has dropped from 81.4% to 16.2%. 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

1Revenue growth stays above 9% a year✓ 11.8% CAGR
Latest reported year was 25.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 19.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

7 good · 3 neutral · 1 weak

Market Cap

₹109 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.1x

Cheap

Cheap against the generic band

P/B Ratio

2.07x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.26

Profitable

Profitable on a per-share basis

ROE

17.6%

Strong

Strong capital efficiency

ROCE

19.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.43x

Low

Conservative leverage

Revenue Growth (YoY)

25.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

20.6%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

8.1%

Good

Assets are working hard

Operating Margin

12.1%

Average

Average margins

Net Margin

8.8%

Average

Average bottom-line conversion

Current Ratio

1.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.57

High swing

Swings more than the market in both directions

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

136.0 / 125.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

39.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹63 Cr	₹72 Cr	₹72 Cr	₹88 Cr	+11.8%
EBITDA	₹12 Cr	₹15 Cr	₹14 Cr	₹17 Cr	+13.9%
EBITDA Margin	18.5%	20.5%	19.3%	19.6%	—
PAT (Net Profit)	₹6 Cr	₹8 Cr	₹7 Cr	₹9 Cr	+9.7%
EPS	₹7.95	₹10.2	₹7.97	—	—
ROE	81.4%	22.0%	14.7%	16.2%	—
ROCE	39.1%	21.5%	16.0%	19.3%	—
Total Debt	₹29 Cr	₹31 Cr	₹24 Cr	₹23 Cr	-7.3%
Free Cash Flow	₹0 Cr	-₹17 Cr	₹7 Cr	₹1 Cr	+39.6%

🟢 Revenue has grown at 11.8% a year over 3 years.

🟢 EBITDA has grown at 13.9% a year over 3 years.

🟢 EBITDA Margin has risen from 18.5% to 19.6% over 3 years (+1.1 pts).

🟢 PAT (Net Profit) has grown at 9.7% a year over 3 years.

🔴 ROE has fallen from 81.4% to 16.2% over 3 years (-65.3 pts).

🔴 ROCE has fallen from 39.1% to 19.3% over 3 years (-19.8 pts).

🟢 Total Debt has shrunk at 7.3% a year over 3 years.

🟢 Free Cash Flow has grown at 39.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹97 Cr

Total Liabilities

₹44 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹19 Cr

Capex

-₹18 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.5%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

6 general

Shri Balaji Valve Components Ltd. Lower Circuit: Price and Key Data

Univest, 05 Oct

Chemtech Industrial Valves (BSE:537326) - Stock Analysis

Simply Wall Street, 13 Oct

Shri Balaji Valve Components Lower Circuit Streak: Day 2

Univest, 06 Oct

Shri Balaji Valve Components sets Sept 22-29 book closure for AGM

scanx.trade, 05 Sept

Shri Balaji Valve Components schedules board meeting for Aug 27

scanx.trade, 20 Aug

Shri Balaji Valve Components Limited IPO sets price band at ₹95-100 apiece: GMP, issue details, more

Livemint, 22 Dec

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑