Sunrise Efficient Marketing Limited

Industrials — Specialty Industrial Machinery · BSE

₹27.80−₹1.44 (−4.92%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sunrise Efficient Marketing Limited provides industrial and commercial products in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees65

Annual revenue₹244 Cr

How does it make money?

Turns over ₹244 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 65 employees supports ₹3.75 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.75 Cr

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 +152% while net margin moved -25% 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+152%

Margin effect-25%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROCE of 19.3% is comfortably above a typical cost of capital
✗ ROCE has fallen by 13.3 points — returns are eroding
✗ EBITDA margin of 8.6% is thin — little cushion if costs rise
✗ Net margin of 5.7% is slim
• Revenue has compounded at 36.1% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

61/ 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

3.5x

3Y Median

20.6x

40 monthly readings · mean 23.6x · range 4.9x–61.4x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 83% below its 3y median of 20.6x. 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 95% below the peer median of 66.2x.

vs. its own history

Cheap

20.6x median over 40 months · -83%

vs. sector peers

Cheap

66.2x median of 4 peers · -95%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

2.4x

PEG

0.15

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 64% over 3 years.
Very low debt
Debt/Equity of -0.12x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 24.5% to 14.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 32.6% to 19.3% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 2 high · 3 watch

🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 257% against revenue up 152% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹24 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 4.1 points over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 28% over 3 years — each existing share owns a smaller slice of the company.

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 64% 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 83% 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 95% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 12.7% to 8.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 257% against revenue up 152%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 24.5% to 14.1%. 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.
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 27% a year✓ 36.1% CAGR
Latest reported year was 21.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹24 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
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

7 / 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 · 2 neutral · 2 weak

Market Cap

₹53 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.5x

Cheap

Cheap against the generic band

P/B Ratio

0.50x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.92

Profitable

Profitable on a per-share basis

ROE

22.8%

Strong

Strong capital efficiency

ROCE

19.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

-0.12x

Low

Conservative leverage

Revenue Growth (YoY)

21.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-9.9%

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

-₹22 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

15.6%

Good

Assets are working hard

Operating Margin

8.9%

Average

Average margins

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

13.18

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.93

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

31.2 / 34.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹97 Cr	₹111 Cr	₹129 Cr	₹244 Cr	+36.1%
EBITDA	₹12 Cr	₹13 Cr	₹13 Cr	₹21 Cr	+19.5%
EBITDA Margin	12.7%	11.6%	10.2%	8.6%	—
PAT (Net Profit)	₹8 Cr	₹8 Cr	₹9 Cr	₹15 Cr	+23.6%
EPS	₹5.35	₹5	₹5.66	—	—
ROE	24.5%	19.9%	13.7%	14.1%	—
ROCE	32.6%	27.8%	19.2%	19.3%	—
Total Debt	₹8 Cr	₹7 Cr	-₹0 Cr	₹3 Cr	-28.8%
Free Cash Flow	-₹11 Cr	₹2 Cr	-₹10 Cr	-₹24 Cr	—

🟢 Revenue has grown at 36.1% a year over 3 years.

🟢 EBITDA has grown at 19.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.7% to 8.6% over 3 years (-4.1 pts).

🟢 PAT (Net Profit) has grown at 23.6% a year over 3 years.

🔴 ROE has fallen from 24.5% to 14.1% over 3 years (-10.4 pts).

🔴 ROCE has fallen from 32.6% to 19.3% over 3 years (-13.3 pts).

🟢 Total Debt has shrunk at 28.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹115 Cr

Total Liabilities

₹9 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹24 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

49.1%

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

Sunrise Efficient Marketing re-appoints SBMG & CO. for three years

scanx.trade, 30 Sept

Sunrise Efficient Marketing Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Sunrise Efficient Marketing Limited Announces Board Changes, Effective January 17, 2026

www.marketscreener.com, 30 Sept

Sunrise Efficient Marketing Ltd

Equitypandit, 13 Jul

Sunrise Efficient Marketing ratifies Pinkal Pancholi as whole-time director

scanx.trade, 30 Sept

Sunrise Efficient Marketing regularises two independent directors for five years

scanx.trade, 24 Sept

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingGrowth · Profitability

WeakBusiness Quality · 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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑