Shri Bajrang Alliance Limited

Basic Materials — Steel · NSE

₹162.00+₹1.99 (+1.24%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by 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, 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shri Bajrang Alliance Limited manufactures and sells structural steel products in India and internationally. The company operates in two segments, Steel and Agro. The company offers structural steel products, including angles, channels, joists, beams, rounds, flats, and H-beams.

IndustrySteel

SectorBasic Materials

Employees243

Annual revenue₹270 Cr

How does it make money?

Turns over ₹270 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 243 employees supports ₹1.11 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.11 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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 1.1% 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 ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -48% while net margin moved +152% 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-48%

Margin effect+152%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 19.8% a year
• Profit CAGR of 9.0%

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

74/ 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

3.2x

Sector Median

18.2x

median of 4 sector peers

🟢Against its sector it trades 82% below the peer median of 18.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

18.2x median of 4 peers · -82%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

31.3x

PEG

0.36

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 3.4% to 1.1% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 92% over 3 years, from ₹54 Cr to ₹104 Cr.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 127% against revenue up -48% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 82% 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?

The debt load needs earnings to hold up
Debt is 13.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
3 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%✓ 3.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 13.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹27 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 1.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 6.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹146 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.2x

Cheap

Cheap against the generic band

P/B Ratio

0.38x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹50.37

Profitable

Profitable on a per-share basis

ROE

11.5%

Moderate

Moderate capital efficiency

ROCE

1.1%

Weak

Low return on total capital employed

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

17.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.8%

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

-₹27 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

1.9%

Weak

Thin margins leave little room for error

Net Margin

15.8%

Good

Strong bottom-line conversion

Current Ratio

1.16

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

RSI (14)

47.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹524 Cr	₹570 Cr	₹398 Cr	₹270 Cr	-19.8%
EBITDA	₹12 Cr	₹9 Cr	₹6 Cr	₹8 Cr	-13.0%
EBITDA Margin	2.3%	1.5%	1.5%	3.0%	—
PAT (Net Profit)	₹34 Cr	₹41 Cr	₹33 Cr	₹44 Cr	+9.0%
EPS	₹37.97	₹45.4	₹36.22	₹49.18	+9.0%
ROE	13.2%	13.6%	9.7%	11.5%	—
ROCE	3.4%	1.8%	0.8%	1.1%	—
Total Debt	₹54 Cr	₹59 Cr	₹98 Cr	₹104 Cr	+24.3%
Free Cash Flow	-₹3 Cr	-₹14 Cr	-₹28 Cr	-₹27 Cr	—

🔴 Revenue has shrunk at 19.8% a year over 3 years.

🔴 EBITDA has shrunk at 13.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 3.0% over 3 years.

🟢 PAT (Net Profit) has grown at 9.0% a year over 3 years.

🟢 EPS has grown at 9.0% a year over 3 years.

🔴 ROE has fallen from 13.2% to 11.5% over 3 years (-1.6 pts).

🔴 ROCE has fallen from 3.4% to 1.1% over 3 years (-2.2 pts).

🔴 Total Debt has grown at 24.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹531 Cr

Total Liabilities

₹147 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹16 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.4%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 positive1 mixed4 general

Shri Bajrang Alliance profit rises 33% in Q1FY27; expands steel capacity

scanx.trade, 11 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Shri Bajrang Alliance Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Shri Bajrang Alliance Q1 FY27 Results: Revenue Rs 104 Cr, PAT Rs 1 Cr and Key Highlights

Univest, 12 AugResults

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

Shri Bajrang Alliance Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

U. H. Zaveri Ltd leads losers in 'B' group

Business Standard, 10 Jul

Shri Bajrang Alliance AGM to approve ₹550 crore related-party deals

scanx.trade, 17 Aug

Watch Items

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

DalalBaazaar Thesis

StrongProfitability · Valuation

MiddlingBusiness Quality · Financial Health

WeakGrowth · 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. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑