Shree Marutinandan Industries Limited

Industrials — Industrial Distribution · BSE

₹41.85−₹0.30 (−0.71%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shree Marutinandan Industries Limited engages in the trading and supply of steel pipes and tubes, agricultural and industrial machinery, prefabricated structures, fire protection systems, and building-services solutions.

IndustryIndustrial Distribution

SectorIndustrials

Employees45

Annual revenue₹145 Cr

How does it make money?

Turns over ₹145 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 45 employees supports ₹3.23 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.23 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB 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 15.0% 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 ROE15.2%

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 +215% while net margin moved -39% 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+215%

Margin effect-39%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 2.40 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

88/ 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

4.0x

3Y Median

10.7x

35 monthly readings · mean 17.8x · range 5.0x–74.6x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 62% below its 3y median of 10.7x. 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 95% below the peer median of 88.8x.

vs. its own history

Cheap

10.7x median over 35 months · -62%

vs. sector peers

Cheap

88.8x median of 3 peers · -95%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

2.6x

PEG

0.16

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 33% over 3 years.
Very low debt
Debt/Equity of 0.13x 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 65.7% to 9.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 69.1% to 15.0% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴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.
🟡Margins are compressingFinancial
EBITDA margin is down 3.3 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 257% against revenue up 215% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 33% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 62% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 95% 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 7.7% to 4.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 257% against revenue up 215%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 65.7% to 9.5%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 35% a year✓ 46.5% CAGR
Latest reported year was 20.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹14 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.0x

Cheap

Cheap against the generic band

P/B Ratio

0.38x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹10.34

Profitable

Profitable on a per-share basis

ROE

12.0%

Moderate

Moderate capital efficiency

ROCE

15.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

20.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

21.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

5.9%

Average

Average asset productivity

Operating Margin

5.7%

Average

Average margins

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.06

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

2.40

High swing

Swings more than the market in both directions

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

44.7 / 46.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

2.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹46 Cr	₹90 Cr	₹110 Cr	₹145 Cr	+46.5%
EBITDA	₹4 Cr	₹4 Cr	₹5 Cr	₹6 Cr	+21.3%
EBITDA Margin	7.7%	4.7%	4.5%	4.3%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹3 Cr	₹4 Cr	+24.5%
EPS	₹5.35	₹12.13	₹8.1	—	—
ROE	65.7%	13.7%	12.8%	9.5%	—
ROCE	69.1%	20.0%	20.7%	15.0%	—
Total Debt	₹7 Cr	₹6 Cr	₹8 Cr	₹5 Cr	-12.5%
Free Cash Flow	-₹0 Cr	-₹7 Cr	-₹5 Cr	-₹6 Cr	—

🟢 Revenue has grown at 46.5% a year over 3 years.

🟢 EBITDA has grown at 21.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.7% to 4.3% over 3 years (-3.3 pts).

🟢 PAT (Net Profit) has grown at 24.5% a year over 3 years.

🔴 ROE has fallen from 65.7% to 9.5% over 3 years (-56.2 pts).

🔴 ROCE has fallen from 69.1% to 15.0% over 3 years (-54.2 pts).

🟢 Total Debt has shrunk at 12.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹66 Cr

Total Liabilities

₹28 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.7%

Peer Comparison

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

Recent News

6 general

Sawaca Enterprises (BSE:531893) - Stock Analysis

Simply Wall Street, 13 Oct

Shree Marutinandan Tubes shareholders approve name change to Industries Ltd

scanx.trade, 09 Sept

Shree Share Price

Upstox, 05 May

Shree Marutinandan Tubes shareholders approve ₹300 crore borrowing limit at AGM

scanx.trade, 23 Sept

Shree Marutinandan Tubes share price debuts with 40% premium at ₹200 on BSE SME

Livemint, 19 Jan

Shree Marutinandan Tubes lists on BSE SME at over 46% premium to IPO price

Moneycontrol.com, 19 Jan

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

StrongFinancial Health · Valuation

MiddlingGrowth

WeakBusiness Quality · 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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑