Shilchar Technologies Limited

Industrials — Electrical Equipment & Parts · NSE

₹3,775.00−₹75.00 (−1.95%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shilchar Technologies Limited engages in the manufacture and sale of transformers and parts in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees172

Annual revenue₹652 Cr

How does it make money?

Turns over ₹652 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation. Each of its 172 employees supports ₹3.79 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.79 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 42.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 32.2% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

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 +133% while net margin moved +58% 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+133%

Margin effect+58%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 31.4x already prices in growth
• P/E is close to its own historical median of 29.8x
✗ P/B of 8.80x is a steep premium to book

Quality vs. Valuation

Company Quality

78/ 100

Good

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

Valuation

64/ 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

31.4x

1.1Y Median

29.8x

13 monthly readings · mean 31.0x · range 26.3x–40.2x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 1.1y median of 29.8x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 65% below the peer median of 88.8x.

vs. its own history

Fair

29.8x median over 13 months · +5%

vs. sector peers

Cheap

88.8x median of 3 peers · -65%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.9x

PEG

0.58

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 21.6% to 33.1% over 3 years.
Cash generation is improving
Free cash flow is up 401% over 3 years.
High return on capital employed
ROCE of 42.8% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 35.5% to 32.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 46.8% to 42.8% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Inventory building faster than salesFinancial
Inventory up 299% against revenue up 133% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 42.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 21.6% to 33.1%. 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 65% 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?

Returns on shareholder capital are falling
ROE has dropped from 35.5% to 32.2%. 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.
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 24% a year✓ 32.5% CAGR
Latest reported year was -15.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 31%✓ 33.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹169 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 40%✓ 42.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 29.8x✓ 31.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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
✓ 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 · 4 neutral · 3 weak

Market Cap

₹4,319 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.4x

Fair

Fairly valued against the generic band

P/B Ratio

8.80x

Rich

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

EPS (TTM)

₹120.22

Profitable

Profitable on a per-share basis

ROE

32.2%

Strong

Strong capital efficiency

ROCE

42.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-15.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-49.7%

Falling

Profits are shrinking

Dividend Yield

0.33%

Modest

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

Free Cash Flow

₹169 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

15.6%

Good

Healthy core-business profitability

Net Margin

21.8%

Good

Strong bottom-line conversion

Current Ratio

5.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.32

Defensive

Steadier than the market

52W Range Position

36%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3993.8 / 4051.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹280 Cr	₹397 Cr	₹623 Cr	₹652 Cr	+32.5%
EBITDA	₹61 Cr	₹126 Cr	₹201 Cr	₹216 Cr	+52.7%
EBITDA Margin	21.6%	31.7%	32.2%	33.1%	—
PAT (Net Profit)	₹43 Cr	₹92 Cr	₹147 Cr	₹158 Cr	+54.2%
EPS	₹37.69	₹80.32	₹128.37	₹138.25	+54.2%
ROE	35.5%	43.8%	42.3%	32.2%	—
ROCE	46.8%	57.9%	56.3%	42.8%	—
Free Cash Flow	₹34 Cr	₹66 Cr	₹21 Cr	₹169 Cr	+71.1%

🟢 Revenue has grown at 32.5% a year over 3 years.

🟢 EBITDA has grown at 52.7% a year over 3 years.

🟢 EBITDA Margin has risen from 21.6% to 33.1% over 3 years (+11.5 pts).

🟢 PAT (Net Profit) has grown at 54.2% a year over 3 years.

🟢 EPS has grown at 54.2% a year over 3 years.

🔴 ROE has fallen from 35.5% to 32.2% over 3 years (-3.3 pts).

🔴 ROCE has fallen from 46.8% to 42.8% over 3 years (-4.1 pts).

🟢 Free Cash Flow has grown at 71.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹591 Cr

Total Liabilities

₹100 Cr

Total Debt

—

Cash & Equivalents

₹21 Cr

Operating Cash Flow

₹192 Cr

Capex

-₹23 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

73.4%

Corporate Actions

Dividend Rate

₹12.5

Ex-Dividend Date

31 Jul 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 mixed5 general

Shilchar Technologies Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Shilchar Technologies Share: Bull Case vs Bear Case for 2026

Univest, 24 Sept

One Shilchar Technologies Insider Has Reduced Their Stake

Simply Wall Street, 09 May

Why Did Shilchar Technologies Ltd (NSE: SHILCTECH) Share Price Fall Despite Strong FY26 Earnings?

Kalkine India, 06 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Shilchar Technologies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Shilchar Technologies cites shipping costs for Q1FY27 revenue dip

scanx.trade, 11 Aug

Watch Items

Revenue growth is negative (-15.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑