Shish Industries Limited

Consumer Cyclical — Packaging & Containers · BSE

₹11.35−₹0.48 (−4.06%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shish Industries Limited engages in the manufacture, trading, and marketing of polypropylene (PP) sheets and rolls in India. The company provides industrial packaging, thermal insulation, PP/PE woven fabric and consumer products.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees57

Annual revenue₹134 Cr

How does it make money?

Turns over ₹134 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 57 employees supports ₹2.36 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.36 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 5.5% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +96% while net margin moved -45% 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+96%

Margin effect-45%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.9% is weak
✗ ROE has fallen by 15.5 points over the period

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

25/ 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.

Historical Valuation

Current P/E

141.9x

3Y Median

63.1x

40 monthly readings · mean 237.6x · range 25.4x–738.1x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 125% above its 3y median of 63.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 105% above the peer median of 69.2x.

vs. its own history

Expensive

63.1x median over 40 months · +125%

vs. sector peers

Expensive

69.2x median of 4 peers · +105%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

30.2x

PEG

60.56

What's Good / What's Bad

🟢 What's Going Well2

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

Return on equity is falling
ROE has dropped from 19.5% to 3.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.8% to 5.5% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 425% over 3 years, from ₹9 Cr to ₹49 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.
🔴Inventory building faster than salesFinancial
Inventory up 184% against revenue up 96% — stock may not be moving.
🟡Margins are compressingFinancial
EBITDA margin is down 2.8 points over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 27% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 15.7% to 12.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 125% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 19.5% to 3.9%. 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.
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 19% a year✓ 25.2% CAGR
Latest reported year was 7.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹61 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 5.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 4 neutral · 5 weak

Market Cap

₹479 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

141.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.69x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.08

Profitable

Profitable on a per-share basis

ROE

3.9%

Weak

Weak capital efficiency

ROCE

5.5%

Weak

Low return on total capital employed

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

7.2%

Modest

Modest growth

Profit Growth (YoY)

-16.9%

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

-₹61 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-4.1%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.03

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.21

Defensive

Steadier than the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

12.7 / 12.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

7.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹69 Cr	₹86 Cr	₹116 Cr	₹134 Cr	+25.2%
EBITDA	₹11 Cr	₹14 Cr	₹15 Cr	₹17 Cr	+17.2%
EBITDA Margin	15.7%	15.8%	12.6%	12.8%	—
PAT (Net Profit)	₹7 Cr	₹8 Cr	₹9 Cr	₹7 Cr	+2.3%
EPS	₹0.21	₹0.29	₹0.23	₹0.18	-5.6%
ROE	19.5%	13.4%	8.3%	3.9%	—
ROCE	25.8%	19.4%	8.9%	5.5%	—
Total Debt	₹9 Cr	₹13 Cr	₹34 Cr	₹49 Cr	+73.7%
Free Cash Flow	-₹2 Cr	-₹24 Cr	-₹35 Cr	-₹61 Cr	—

🟢 Revenue has grown at 25.2% a year over 3 years.

🟢 EBITDA has grown at 17.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 15.7% to 12.8% over 3 years (-2.8 pts).

🟢 PAT (Net Profit) has grown at 2.3% a year over 3 years.

🔴 EPS has shrunk at 5.6% a year over 3 years.

🔴 ROE has fallen from 19.5% to 3.9% over 3 years (-15.5 pts).

🔴 ROCE has fallen from 25.8% to 5.5% over 3 years (-20.2 pts).

🔴 Total Debt has grown at 73.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹253 Cr

Total Liabilities

₹74 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹47 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.5%

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 positive1 mixed4 general

Shish Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Shish Industries Ltd Upgraded to Sell on Technical Improvements Despite Financial Challenges

MarketsMojo, 14 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Shish Industries closes trading window for insiders from October 1

scanx.trade, 26 Sept

Shish Industries Q4 FY26: Revenue Rs 123.26 Cr, PAT Rs 8.76 Cr

Univest, 02 JunResults

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

Shish Industries - 11 penny stocks surged up to 300% in 3 months. Do you own any?

The Economic Times, 08 Feb

Shish Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Watch Items

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

MiddlingFinancial Health · Growth · Risk

WeakBusiness Quality · Profitability · Valuation

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 stays below 2x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑