SG Mart Limited

Industrials — Industrial Distribution · NSE

₹818.00+₹62.90 (+8.33%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by small-cap size, which brings sharper price swings, 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, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

SG Mart Limited, together with its subsidiaries, trades in building material products in India and internationally.

IndustryIndustrial Distribution

SectorIndustrials

Employees177

Annual revenue₹6,302 Cr

How does it make money?

Turns over ₹6,302 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 177 employees supports ₹35.60 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹35.60 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB 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?Little sign of one

Returns on capital of 11.8% 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 ROE15.2%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 42.5% and earnings to grow about 38.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+42.5%

Est. earnings growth+38.6%

Analysts1

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 +404190% while net margin moved -86% 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+404190%

Margin effect-86%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 83.0x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 76.5x
✗ P/B of 6.46x is a steep premium to book

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

51/ 100

Fair

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

83.0x

1.3Y Median

76.5x

15 monthly readings · mean 69.9x · range 46.5x–93.5x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 1.3y median of 76.5x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 88.8x.

vs. its own history

Fair

76.5x median over 15 months · +8%

vs. sector peers

Fair

88.8x median of 3 peers · -7%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

49.3x

PEG

0.11

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from -11.4% to 3.2% over 3 years.
Cash generation is improving
Free cash flow is up 494% over 3 years.
Return on equity is rising
ROE has improved from 1.6% to 7.0%.
Return on capital is rising
ROCE has improved from 2.2% to 11.8%.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 530% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -11.4% to 3.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹26 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?

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
Small 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 1120% a year✓ 1493.1% CAGR
Latest reported year was 14.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✓ 3.9x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹26 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

6 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹10,313 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

83.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.46x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹9.86

Profitable

Profitable on a per-share basis

ROE

7.0%

Weak

Weak capital efficiency

ROCE

11.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

14.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

34.6%

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

₹26 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

40.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

4.2%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.51

Defensive

Steadier than the market

52W Range Position

92%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

748.1 / 765.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

67.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹2,683 Cr	₹5,856 Cr	₹6,302 Cr	+1493.1%
EBITDA	-₹0 Cr	₹92 Cr	₹179 Cr	₹204 Cr	—
EBITDA Margin	-11.4%	3.4%	3.1%	3.2%	—
PAT (Net Profit)	₹0 Cr	₹61 Cr	₹103 Cr	₹111 Cr	+726.0%
EPS	—	₹7.46	—	₹8.92	—
ROE	1.6%	5.6%	8.6%	7.0%	—
ROCE	2.2%	8.5%	14.4%	11.8%	—
Total Debt	—	₹335 Cr	₹722 Cr	₹268 Cr	—
Free Cash Flow	₹4 Cr	-₹75 Cr	-₹549 Cr	₹26 Cr	+81.1%

🟢 Revenue has grown at 1493.1% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹204 Cr.

🟢 EBITDA Margin has risen from -11.4% to 3.2% over 3 years (+14.6 pts).

🟢 PAT (Net Profit) has grown at 726.0% a year over 3 years.

🟢 ROE has risen from 1.6% to 7.0% over 3 years (+5.3 pts).

🟢 ROCE has risen from 2.2% to 11.8% over 3 years (+9.6 pts).

🟢 Free Cash Flow has grown at 81.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,250 Cr

Total Liabilities

₹653 Cr

Cash & Equivalents

₹520 Cr

Operating Cash Flow

₹258 Cr

Capex

-₹232 Cr

Shareholding (proxy)

Institutional Holding

0.2%

Insider Holding

66.7%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹777

-5.0% vs CMP

Target Range

₹777 – ₹777

Peer Comparison

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

Recent News

3 mixed3 general

SG Mart Ltd. Share Price: fresh 52-week high and valuation

Univest, 26 Aug

We Think That There Are Some Issues For SG Mart (NSE:SGMART) Beyond Its Promising Earnings

Simply Wall Street, 12 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

SG Mart Outlines Multi-Year CapEx and Long-Term Steel Volume Guidance

Sahi, 21 Jul

SG Mart Shares Rise 2.7% Ahead of Its Scheduled NSE Listing Tomorrow

HDFC Sky, 09 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Nuvama initiates coverage on SG Mart, Siemens Energy India with Buy; sees up to 21% upside

The Economic Times, 17 Jul

ADIA, PSP Investments acquire shares worth Rs 138 crore in SG Mart

Moneycontrol.com, 14 JulM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability · Risk

WeakValuation

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.

All 5 tripwires holding · see Key things to watch ↑