Shipping Corporation of India Land and Assets Limited

Real Estate — Real Estate Services · NSE

₹37.30+₹0.39 (+1.06%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of Shipping Corporation of India Land and Assets Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shipping Corporation of India Land and Assets Limited engages in the real estate activities with own or leased property in India. It also provides higher, technical, and vocational education services.

IndustryReal Estate Services

SectorReal Estate

Annual revenue₹23 Cr

How does it make money?

Turns over ₹23 Cr a year. Of every ₹100 of sales, about ₹124 reaches shareholders as profit, with ₹179 left at the operating level before interest, tax and depreciation.

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 1.2% 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 ROE10.3%

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 +86% while net margin moved -57% 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+86%

Margin effect-57%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Beta of 0.93 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ 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

61/ 100

Average

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

Valuation

29/ 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

62.2x

3Y Median

51.7x

33 monthly readings · mean 58.8x · range 34.2x–134.6x

Sector Median

30.2x

median of 3 sector peers

⚠️Current valuation is approximately 20% above its 3y median of 51.7x. 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 106% above the peer median of 30.2x.

vs. its own history

Expensive

51.7x median over 33 months · +20%

vs. sector peers

Expensive

30.2x median of 3 peers · +106%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

41.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 146.8% to 179.2% over 3 years.
Very low debt
Debt/Equity of 0.00x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴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.
🔴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?

Margin expansion has further to run
EBITDA margin has risen from 146.8% to 179.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 20% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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

1Revenue growth stays above 17% a year✓ 23.1% CAGR
Latest reported year was 37.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 177%✓ 179.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹62 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 1.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

4 good · 2 neutral · 5 weak

Market Cap

₹1,737 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

62.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.52x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.6

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

1.2%

Weak

Low return on total capital employed

Debt/Equity

0.00x

Low

Conservative leverage

Revenue Growth (YoY)

37.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-3.2%

Falling

Profits are shrinking

Dividend Yield

1.47%

Modest

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

Free Cash Flow

-₹62 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-22.0%

Weak

Thin margins leave little room for error

Net Margin

112.0%

Good

Strong bottom-line conversion

Current Ratio

3.77

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.93

Market-like

Moves roughly in line with the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

37.3 / 38.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹17 Cr	₹18 Cr	₹23 Cr	+23.1%
EBITDA	₹18 Cr	₹56 Cr	₹67 Cr	₹42 Cr	+31.5%
EBITDA Margin	146.8%	324.0%	368.6%	179.2%	—
PAT (Net Profit)	₹36 Cr	₹47 Cr	-₹189 Cr	₹29 Cr	-6.8%
EPS	₹0.76	₹1.02	₹-4.07	₹0.62	-6.7%
ROE	1.1%	1.5%	-6.3%	1.0%	—
ROCE	0.6%	1.7%	2.0%	1.2%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+0.0%
Free Cash Flow	-₹24 Cr	-₹387 Cr	-₹56 Cr	-₹62 Cr	—

🟢 Revenue has grown at 23.1% a year over 3 years.

🟢 EBITDA has grown at 31.5% a year over 3 years.

🟢 EBITDA Margin has risen from 146.8% to 179.2% over 3 years (+32.4 pts).

🔴 PAT (Net Profit) has shrunk at 6.8% a year over 3 years.

🔴 EPS has shrunk at 6.7% a year over 3 years.

🟡 ROE has held roughly flat at 1.0% over 3 years.

🟡 ROCE has held roughly flat at 1.2% over 3 years.

🟡 Total Debt has been broadly flat over 3 years (0.0% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,550 Cr

Total Liabilities

₹545 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹61 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

5.8%

Insider Holding

66.5%

Corporate Actions

Dividend Rate

₹0.55

Ex-Dividend Date

04 Sept 2026

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

Why Shipping Corporation of India Land & Assets Share Price is Rising

Equitymaster, 07 May

Shipping Corporation of India Land and Assets Share: Bull Case vs Bear Case for 2026

Univest, 24 Sept

Shipping Corporation Of India Land And Assets Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

SCILAL minutes show ₹2,882 lakh PBT for FY26

scanx.trade, 21 Sept

Shipping Corporation of India Land and Assets Limited's (NSE:SCILAL) largest shareholders are state or government who were rewarded as market cap surged ₹2.2b last week

Simply Wall Street, 10 Feb

Shipping Corporation of India Land and Assets Limited Financial Disclosures & Filings

TradingView, 24 Aug

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

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.

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