Shreeshay Engineers Limited

Industrials — Engineering & Construction · BSE

₹28.50₹0.00 (0.00%)

DalalBaazaar Score

51 / 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, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Shreeshay Engineers Limited provides real estate construction and engineering focused solutions in India. The company offers supply of materials, designing and contracting capabilities, as well as construction project management services.

IndustryEngineering & Construction

SectorIndustrials

Employees1

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹23 left at the operating level before interest, tax and depreciation. Each of its 1 employees supports ₹1.59 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin23.5%

Net margin14.7%

Revenue / employee₹1.59 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Little sign of one

Returns on capital of 1.5% 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.

ROCE1.5%

ROE1.0%

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -77% while net margin moved +398% 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-77%

Margin effect+398%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 38.5% a year
✗ Profit CAGR of only 5.0%
✗ Latest-year revenue growth of -100.0% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

41/ 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

158.3x

3Y Median

230.3x

40 monthly readings · mean 203.0x · range 42.7x–340.0x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 31% below its 3y median of 230.3x. 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 426% above the peer median of 30.1x.

vs. its own history

Cheap

230.3x median over 40 months · -31%

vs. sector peers

Expensive

30.1x median of 3 peers · +426%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

158.3x

P/B

1.56x

EV/EBITDA

88.8x

PEG

31.60

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 2.9% to 23.5% over 3 years.
Valuation below its historical average
At 158.3x the stock trades 31% below its own median of 230.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.9% to 23.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 31% 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.
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?

A premium to the sector to defend
It trades 426% above the peer median. That premium needs a reason that persists, or it closes.
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 21%✓ 23.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 1.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Interest cover stays above 4x✓ 7.2x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 230.3x✓ 158.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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
✓ 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

₹38 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

158.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.56x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.18

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

1.5%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-100.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

339.5%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹28.5

ROA

-0.1%

Weak

Assets generate little profit

Operating Margin

-68400.0%

Weak

Thin margins leave little room for error

Net Margin

14.7%

Good

Strong bottom-line conversion

Current Ratio

3.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.31

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

25.5 / 25.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7 Cr	₹18 Cr	₹1 Cr	₹2 Cr	-38.5%
EBITDA	₹0 Cr	₹1 Cr	₹0 Cr	₹0 Cr	+23.2%
EBITDA Margin	2.9%	8.1%	16.2%	23.5%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹0 Cr	₹0 Cr	+5.0%
EPS	₹0.15	₹0.48	₹0.1	—	—
ROE	0.9%	4.6%	0.6%	1.0%	—
ROCE	0.9%	6.1%	0.9%	1.5%	—
Free Cash Flow	₹2 Cr	₹2 Cr	₹3 Cr	-₹2 Cr	—

🔴 Revenue has shrunk at 38.5% a year over 3 years.

🟢 EBITDA has grown at 23.2% a year over 3 years.

🟢 EBITDA Margin has risen from 2.9% to 23.5% over 3 years (+20.6 pts).

🟢 PAT (Net Profit) has grown at 5.0% a year over 3 years.

🟡 ROE has held roughly flat at 1.0% over 3 years.

🟡 ROCE has held roughly flat at 1.5% over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹28 Cr

Total Liabilities

₹3 Cr

Total Debt

—

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.0%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

6 general

Shreeshay Engineers Ltd. Peer Comparison – Compare with Others

Value Research, 13 Oct

Shreeshay Engineers adopts FY26 accounts, reappoints Jignesh Thobhani

scanx.trade, 28 Sept

Shreeshay Engineers Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Shreeshay Engineers Limited Announces Executive Changes

www.marketscreener.com, 09 Oct

SJP ULTRASONICS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 08 Oct

Shreeshay Engineers appoints M/s. D G M S & Co. as internal auditor

scanx.trade, 31 Aug

Watch Items

Revenue growth is negative (-100.0%) 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 overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong13.2/20

🔴GrowthWeak5.7/20

🟡ProfitabilityModerate7.9/15

🟡ValuationFair8.3/15

🔴RiskHigh4/10

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.

This thesis breaks if

✓EBITDA margin holds above 21%23.5%
✗Free cash flow remains positive-₹2 Cr
✗ROCE stays above 8%1.5%
✓Interest cover stays above 4x7.2x
✓Valuation vs its own median of 230.3x158.3x today