Shree Hari Chemicals Export Limited

Basic Materials — Specialty Chemicals · BSE

₹309.50−₹0.05 (−0.02%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, 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, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Shree Hari Chemicals Export Limited manufactures, supplies, and exports dye intermediates (H-acid) in India and internationally. It offers 1-amino, 8-napthol, and 3-6 disulphonic acids that is used in dyestuffs, as well as acid, direct, and reactive dyes.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees130

Annual revenue₹181 Cr

How does it make money?

Turns over ₹181 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 130 employees supports ₹1.39 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin5.2%

Net margin2.3%

Revenue / employee₹1.39 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

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.

ROCE13.7%

ROE9.4%

Peer median ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +76% while net margin moved -112% 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+76%

Margin effect-112%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.27 — historically steadier than the index
✗ 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

62/ 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

16.6x

2Y Median

20.7x

28 monthly readings · mean 21.9x · range 10.5x–47.3x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 20% below its 2y median of 20.7x. 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 59% below the peer median of 40.4x.

vs. its own history

Fair

20.7x median over 28 months · -20%

vs. sector peers

Cheap

40.4x median of 4 peers · -59%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

16.6x

P/B

3.86x

EV/EBITDA

23.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -22.1% to 5.2% over 3 years.
Return on equity is rising
ROE has improved from -110.3% to 9.4%.
Return on capital is rising
ROCE has improved from -106.1% to 13.7%.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Short-term liquidity is tight
Current ratio of 0.95 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 3 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 25% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.95 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -22.1% to 5.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 59% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 20.7% CAGR
Latest reported year was 125.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.5x
How much operating profit can fall before interest stops being comfortably covered.

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

2 good · 7 neutral · 2 weak

Market Cap

₹195 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.86x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.59

Profitable

Profitable on a per-share basis

ROE

9.4%

Moderate

Moderate capital efficiency

ROCE

13.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.75x

Moderate

Moderate leverage

Revenue Growth (YoY)

125.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-18.6%

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

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹309.5

Operating Margin

14.1%

Average

Average margins

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

0.95

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

84%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

320.7 / 252.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹103 Cr	₹137 Cr	₹139 Cr	₹181 Cr	+20.7%
EBITDA	-₹23 Cr	₹8 Cr	₹11 Cr	₹9 Cr	—
EBITDA Margin	-22.1%	5.7%	8.0%	5.2%	—
PAT (Net Profit)	-₹20 Cr	₹2 Cr	₹5 Cr	₹4 Cr	—
EPS	₹-44.54	₹5.16	₹8.72	₹7.03	—
ROE	-110.3%	11.3%	15.9%	9.4%	—
ROCE	-106.1%	22.5%	25.3%	13.7%	—
Total Debt	₹30 Cr	₹27 Cr	₹26 Cr	₹33 Cr	+3.7%
Free Cash Flow	-₹6 Cr	₹8 Cr	-₹6 Cr	-₹6 Cr	—

🟢 Revenue has grown at 20.7% a year over 3 years.

🟢 EBITDA has turned positive, from -₹23 Cr to ₹9 Cr.

🟢 EBITDA Margin has risen from -22.1% to 5.2% over 3 years (+27.3 pts).

🟢 PAT (Net Profit) has turned positive, from -₹20 Cr to ₹4 Cr.

🟢 EPS has turned positive, from ₹-44.54 to ₹7.03.

🟢 ROE has risen from -110.3% to 9.4% over 3 years (+119.7 pts).

🟢 ROCE has risen from -106.1% to 13.7% over 3 years (+119.8 pts).

🔴 Total Debt has grown at 3.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹107 Cr

Total Liabilities

₹63 Cr

Total Debt

₹33 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.0%

Corporate Actions

Ex-Dividend Date

24 Aug 2017

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive1 mixed4 general

Shree Hari Chemicals Export Lower Circuit Today: Price, Data and Peers

Univest, 15 Oct

Shree Hari Chemicals Export consolidated net profit rises 5100.00% in the March 2026 quarter

Business Standard, 15 MayResults

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

Shree Hari Chemicals Export Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Shree Hari Chemicals promoters transfer 56,595 shares at ₹236

scanx.trade, 21 Sept

Shree Hari Chemicals Export Limited Submits Dematerialisation Compliance Certificate for Q4 FY26

scanx.trade, 02 AprResults

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

Deep Polymers Ltd. Stock Gains 19.97% Amid Market Activity

Univest, 28 Jul

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🔴Financial HealthStretched8.7/20

🟢GrowthStrong18.4/20

🟡ProfitabilityModerate8.3/15

🟡ValuationFair9.3/15

🔴RiskHigh4/10

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.

This thesis breaks if

✓Revenue growth stays above 16% a year20.7% CAGR
✓EBITDA margin holds above 3%5.2%
✗Debt / EBITDA falls below 3x3.5x
✗Free cash flow remains positive-₹6 Cr
✓Interest cover stays above 3x3.5x