Shetron Limited

Consumer Cyclical — Packaging & Containers · BSE

₹109.70+₹1.60 (+1.48%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by 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. Thin profit margins are 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 Shetron Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shetron Limited manufactures and sells metal packaging products in India and internationally.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees245

Annual revenue₹246 Cr

How does it make money?

Turns over ₹246 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 245 employees supports ₹1.01 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.01 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 13.7% 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 ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +1% while net margin moved -34% 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+1%

Margin effect-34%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.2% — barely ahead of inflation
✗ Profit has declined at 12.6% a year

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

67/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

23.1x

3Y Median

21.4x

40 monthly readings · mean 23.1x · range 13.2x–42.7x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 21.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 67% below the peer median of 69.2x.

vs. its own history

Fair

21.4x median over 40 months · +8%

vs. sector peers

Cheap

69.2x median of 4 peers · -67%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.8x

PEG

1.38

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 40% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive 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 11.9% to 6.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.0% to 13.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 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.
🟡Profit is decliningFinancial
Net profit is down 33% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 40% 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 67% 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?

Growth barely outpaces inflation
Revenue compounding at 0.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 11.9% to 6.5%. 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

1EBITDA margin holds above 4%✓ 6.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 0.2% CAGR
Latest reported year was 25.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.

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

4 good · 6 neutral · 1 weak

Market Cap

₹99 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.60x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.75

Profitable

Profitable on a per-share basis

ROE

6.5%

Weak

Weak capital efficiency

ROCE

13.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.66x

Moderate

Moderate leverage

Revenue Growth (YoY)

25.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

16.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.91%

Modest

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

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.0%

Average

Average margins

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.36

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

101.4 / 103.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

70.8

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹245 Cr	₹240 Cr	₹229 Cr	₹246 Cr	+0.2%
EBITDA	₹19 Cr	₹21 Cr	₹15 Cr	₹16 Cr	-6.4%
EBITDA Margin	7.9%	8.7%	6.7%	6.4%	—
PAT (Net Profit)	₹6 Cr	₹7 Cr	₹3 Cr	₹4 Cr	-12.6%
EPS	₹6.67	₹7.26	₹3.42	₹4.44	-12.7%
ROE	11.9%	11.6%	5.3%	6.5%	—
ROCE	17.0%	17.5%	12.6%	13.7%	—
Total Debt	₹68 Cr	₹65 Cr	₹46 Cr	₹41 Cr	-15.7%
Free Cash Flow	-₹0 Cr	₹5 Cr	₹15 Cr	₹4 Cr	—

🟡 Revenue has been broadly flat over 3 years (0.2% a year).

🔴 EBITDA has shrunk at 6.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.9% to 6.4% over 3 years (-1.5 pts).

🔴 PAT (Net Profit) has shrunk at 12.6% a year over 3 years.

🔴 EPS has shrunk at 12.7% a year over 3 years.

🔴 ROE has fallen from 11.9% to 6.5% over 3 years (-5.4 pts).

🔴 ROCE has fallen from 17.0% to 13.7% over 3 years (-3.3 pts).

🟢 Total Debt has shrunk at 15.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹157 Cr

Total Liabilities

₹96 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹13 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.5%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

24 Jul 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

Shetron Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

Shetron Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Shetron Limited Reports Q2 FY26 Financial Results: Revenue at Rs 6,044 Lakhs

scanx.trade, 07 NovResults

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

SHETRON LTD. Share Price

Upstox, 15 Apr

Shetron Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 26 Aug

Shetron Limited (526137) Company Information

Simply Wall Street, 14 Nov

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑