Shigan Quantum Technologies Limited

Sector n/a · NSE

₹113.00₹0.00 (0.00%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:02 pm

Understanding the Business

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

How does it make money?

Turns over ₹218 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 13.0% 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.

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +33% while net margin moved +38% 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+33%

Margin effect+38%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

35/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

16.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 5.9% to 8.3% over 3 years.
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

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 89% over 3 years, from ₹35 Cr to ₹66 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.
🔴Receivables growing faster than salesFinancial
Receivables up 698% against revenue up 33% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 5.9% to 8.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 3.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 698% against revenue up 33%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1Revenue growth stays above 8% a year✓ 10.1% CAGR
Latest reported year was 3.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.6x
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✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

0 good · 8 neutral · 3 weak

Market Cap

₹230 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

6.8%

Weak

Weak capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.67x

Moderate

Moderate leverage

Revenue Growth (YoY)

3.5%

Modest

Modest growth

Profit Growth (YoY)

-22.7%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

19.6%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

1.88

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

62.2 / 65.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

59.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹164 Cr	₹152 Cr	₹211 Cr	₹218 Cr	+10.1%
EBITDA	₹10 Cr	₹13 Cr	₹21 Cr	₹18 Cr	+23.9%
EBITDA Margin	5.9%	8.4%	9.9%	8.3%	—
PAT (Net Profit)	₹4 Cr	₹5 Cr	₹9 Cr	₹7 Cr	+22.5%
EPS	₹2.13	₹2.75	₹4.7	—	—
ROE	6.8%	6.7%	9.4%	6.8%	—
ROCE	13.7%	13.1%	16.2%	13.0%	—
Total Debt	₹35 Cr	₹45 Cr	₹56 Cr	₹66 Cr	+23.6%
Free Cash Flow	-₹14 Cr	-₹18 Cr	-₹18 Cr	-₹1 Cr	—

🟢 Revenue has grown at 10.1% a year over 3 years.

🟢 EBITDA has grown at 23.9% a year over 3 years.

🟢 EBITDA Margin has risen from 5.9% to 8.3% over 3 years (+2.5 pts).

🟢 PAT (Net Profit) has grown at 22.5% a year over 3 years.

🟡 ROE has held roughly flat at 6.8% over 3 years.

🟡 ROCE has held roughly flat at 13.0% over 3 years.

🔴 Total Debt has grown at 23.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹204 Cr

Total Liabilities

₹104 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹10 Cr

Recent News

6 general

Shigan Quantum Technologies Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Shigan Quantum Technologies (NSE:SHIGAN) Has A Pretty Healthy Balance Sheet

Simply Wall Street, 27 Jan

SHIGAN Stock Price and Chart — NSE:SHIGAN

TradingView, 28 Mar

Adani Total Gas signs pact with Shigan to decarbonise supply chain

Moneycontrol.com, 03 Jan

Everyone Knows about NTPC Green, Adani Green and Websol. But Here are 4 Renewable Energy Stocks Flying Under the Radar

Equitymaster, 22 Sept

DIGILOGIC Stock Price and Chart — BSE:DIGILOGIC

TradingView, 28 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Valuation

WeakProfitability · 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; Interest cover stays above 3x · see Key things to watch ↑