Shivalik Rasayan Limited

Basic Materials — Agricultural Inputs · NSE

₹344.00−₹0.05 (−0.01%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shivalik Rasayan Limited produces and sells chemicals for the protection of plants in India.

IndustryAgricultural Inputs

SectorBasic Materials

Employees342

Annual revenue₹362 Cr

How does it make money?

Turns over ₹362 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 342 employees supports ₹1.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.06 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS 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 4.9% 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 ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +55% while net margin moved -61% 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+55%

Margin effect-61%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.9% is weak
✗ ROE has fallen by 3.8 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

47/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

39.7x

3Y Median

46.3x

40 monthly readings · mean 50.4x · range 20.8x–91.7x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 14% below its 3y median of 46.3x. 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 38% above the peer median of 28.7x.

vs. its own history

Fair

46.3x median over 40 months · -14%

vs. sector peers

Expensive

28.7x median of 4 peers · +38%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

12.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.19x 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 6.7% to 2.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 8.3% to 4.9% — 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 87% over 3 years, from ₹66 Cr to ₹123 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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.9 points, from 20.9% to 13.9%.
🟡Profit is decliningFinancial
Net profit is down 40% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 96% against revenue up 55% — stock may not be moving.

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 20.9% to 13.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 38% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 6.7% to 2.9%. 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 12% a year✓ 15.6% CAGR
Latest reported year was 7.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹51 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹552 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.7x

Fair

Fairly valued against the generic band

P/B Ratio

0.91x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.67

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

4.9%

Weak

Low return on total capital employed

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

7.9%

Modest

Modest growth

Profit Growth (YoY)

111.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.15%

Modest

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

Free Cash Flow

-₹51 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.0%

Average

Average margins

Net Margin

3.7%

Average

Average bottom-line conversion

Current Ratio

2.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

381.9 / 333.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

20.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹234 Cr	₹272 Cr	₹310 Cr	₹362 Cr	+15.6%
EBITDA	₹49 Cr	₹45 Cr	₹49 Cr	₹50 Cr	+1.1%
EBITDA Margin	20.9%	16.5%	15.7%	13.9%	—
PAT (Net Profit)	₹21 Cr	₹13 Cr	₹17 Cr	₹12 Cr	-15.8%
EPS	₹14.32	₹8.35	₹10.6	₹7.87	-18.1%
ROE	6.7%	3.3%	4.0%	2.9%	—
ROCE	8.3%	5.8%	5.9%	4.9%	—
Total Debt	₹66 Cr	₹86 Cr	₹105 Cr	₹123 Cr	+23.3%
Free Cash Flow	-₹82 Cr	-₹76 Cr	-₹32 Cr	-₹51 Cr	—

🟢 Revenue has grown at 15.6% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.1% a year).

🔴 EBITDA Margin has fallen from 20.9% to 13.9% over 3 years (-6.9 pts).

🔴 PAT (Net Profit) has shrunk at 15.8% a year over 3 years.

🔴 EPS has shrunk at 18.1% a year over 3 years.

🔴 ROE has fallen from 6.7% to 2.9% over 3 years (-3.8 pts).

🔴 ROCE has fallen from 8.3% to 4.9% over 3 years (-3.3 pts).

🔴 Total Debt has grown at 23.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹819 Cr

Total Liabilities

₹220 Cr

Cash & Equivalents

₹34 Cr

Operating Cash Flow

-₹34 Cr

Capex

-₹17 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

53.9%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

21 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive1 mixed4 general

Shivalik Rasayan former director Sanjay Bansal sells ₹1.25 crore stake

scanx.trade, 13 Oct

Shivalik Rasayan Share Price Forecast to 2030

Univest, 27 Jul

Shivalik Rasayan - FIIs cut stakes in 12 smallcap stocks in June quarter, shares slide up to 50%. Do you own any?

The Economic Times, 17 JulResults

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

Shivalik Rasayan consolidated net profit rises 112.50% in the June 2026 quarter

Business Standard, 15 AugResults

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

Shivalik Rasayan Share Price: price action and valuation

Univest, 16 Sept

Former director Sanjay Bansal sells 40,000 Shivalik Rasayan shares

scanx.trade, 04 Jun

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 · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑