Shilp Gravures Limited

Industrials — Specialty Industrial Machinery · NSE

₹150.00+₹4.60 (+3.16%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shilp Gravures Limited, together with its subsidiary, Etone India Private Limited, manufactures and sells engraved copper rollers using electronic, laser, and chemical etching technologies in India. It operates through Engraved Copper Roller and Energy Generation segments.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees253

Annual revenue₹89 Cr

How does it make money?

Turns over ₹89 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 253 employees supports ₹35.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹35.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., 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?Little sign of one

Returns on capital of 8.0% 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.

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +6% while net margin moved -15% 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+6%

Margin effect-15%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.9% — barely ahead of inflation
✗ Profit has declined at 3.6% a year
✗ Profit fell 9.5% in the latest year

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

87/ 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

13.9x

Sector Median

66.2x

median of 4 sector peers

🟢Against its sector it trades 79% below the peer median of 66.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

66.2x median of 4 peers · -79%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 89% over 3 years.
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 Attention2

Margins are compressing
EBITDA margin has slipped from 19.4% to 17.7% over 3 years.
Return on capital is falling
ROCE has declined from 12.1% to 8.0% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹34 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 89% 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 79% 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?

Margins are being competed away
EBITDA margin has fallen from 19.4% to 17.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 1.9% 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.
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

1EBITDA margin holds above 16%✓ 17.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹34 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 1.9% CAGR
Latest reported year was 1.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹92 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.9x

Cheap

Cheap against the generic band

P/B Ratio

0.89x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹10.8

Profitable

Profitable on a per-share basis

ROE

6.7%

Weak

Weak capital efficiency

ROCE

8.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

1.2%

Modest

Modest growth

Profit Growth (YoY)

-9.5%

Falling

Profits are shrinking

Dividend Yield

1.40%

Modest

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

Free Cash Flow

-₹34 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.4%

Average

Average margins

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

6.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

RSI (14)

50.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹84 Cr	₹83 Cr	₹86 Cr	₹89 Cr	+1.9%
EBITDA	₹16 Cr	₹12 Cr	₹8 Cr	₹16 Cr	-1.2%
EBITDA Margin	19.4%	14.1%	9.3%	17.7%	—
PAT (Net Profit)	₹8 Cr	₹11 Cr	₹4 Cr	₹7 Cr	-3.6%
EPS	₹12.7	₹18.57	₹6.04	₹11.38	-3.6%
ROE	9.0%	11.8%	3.7%	6.7%	—
ROCE	12.1%	14.8%	4.6%	8.0%	—
Total Debt	₹2 Cr	₹4 Cr	₹1 Cr	₹0 Cr	-51.4%
Free Cash Flow	₹11 Cr	₹0 Cr	₹6 Cr	-₹34 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.9% a year).

🟡 EBITDA has been broadly flat over 3 years (-1.2% a year).

🔴 EBITDA Margin has fallen from 19.4% to 17.7% over 3 years (-1.7 pts).

🔴 PAT (Net Profit) has shrunk at 3.6% a year over 3 years.

🔴 EPS has shrunk at 3.6% a year over 3 years.

🔴 ROE has fallen from 9.0% to 6.7% over 3 years (-2.3 pts).

🔴 ROCE has fallen from 12.1% to 8.0% over 3 years (-4.1 pts).

🟢 Total Debt has shrunk at 51.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹11 Cr to -₹34 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹120 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹43 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.6%

Corporate Actions

Dividend Rate

₹2.1

Ex-Dividend Date

16 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

2 mixed4 general

Shilp Gravures Ltd is Rated Sell

MarketsMojo, 16 Oct

SHILGRAVQ Stock Price and Chart — NSE:SHILGRAVQ

TradingView, 18 Aug

Shilp Gravures opens new Bengaluru unit, boosting capacity by over 19%

scanx.trade, 05 Oct

Shilp Gravures Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Shilp Gravures Share Price Falls 10.82%: Valuation View

Univest, 31 AugPrice 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.

Shilp Gravures approves ₹6.71 Cr capacity expansion in Karnataka

scanx.trade, 17 AugCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · 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.

2 of 5 tripwires tripped — Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑