Shree Metalloys Limited

Basic Materials — Other Industrial Metals & Mining · BSE

₹38.00+₹1.65 (+4.54%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shree Metalloys Limited trades in ferrous and non-ferrous primarily in India. The company also offers brass, bronze, and copper alloys; and manufactures and sells non-ferrous metals.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees8

Annual revenue₹104 Cr

How does it make money?

Turns over ₹104 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹12.97 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹12.97 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL 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?Some evidence

ROCE of 18.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE12.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +13% while net margin moved +106% 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+13%

Margin effect+106%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.10 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

79/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

11.1x

3Y Median

26.7x

40 monthly readings · mean 27.7x · range 13.4x–51.8x

Sector Median

12.3x

median of 3 sector peers

🟢Current valuation is approximately 58% below its 3y median of 26.7x. 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 is priced broadly in line with the peer median of 12.3x.

vs. its own history

Cheap

26.7x median over 40 months · -58%

vs. sector peers

Fair

12.3x median of 3 peers · -10%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.5x

PEG

0.34

What's Good / What's Bad

🟢 What's Going Well4

Cash generation is improving
Free cash flow is up 26% over 3 years.
Return on equity is rising
ROE has improved from 7.5% to 12.6%.
Return on capital is rising
ROCE has improved from 11.2% to 18.6%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 383% against revenue up 13% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 58% 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?

Sales are being booked faster than collected
Receivables are up 383% against revenue up 13%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.3% 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 0%✓ 2.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.3% CAGR
Latest reported year was 164.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 16%✓ 18.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 26.7x✓ 11.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

6 good · 5 neutral · 0 weak

Market Cap

₹20 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.1x

Cheap

Cheap against the generic band

P/B Ratio

1.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.41

Profitable

Profitable on a per-share basis

ROE

12.6%

Moderate

Moderate capital efficiency

ROCE

18.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

164.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

275.0%

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

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.8%

Weak

Thin margins leave little room for error

Net Margin

1.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

321.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

36.5 / 37.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹91 Cr	₹95 Cr	₹104 Cr	₹104 Cr	+4.3%
EBITDA	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+25.8%
EBITDA Margin	1.3%	1.0%	2.0%	2.2%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+32.7%
EPS	₹1.18	₹0.96	₹2.43	₹2.75	+32.6%
ROE	7.5%	5.8%	12.7%	12.6%	—
ROCE	11.2%	8.2%	18.5%	18.6%	—
Total Debt	₹0 Cr	—	₹3 Cr	—	—
Free Cash Flow	₹5 Cr	-₹1 Cr	-₹6 Cr	₹7 Cr	+8.0%

🟢 Revenue has grown at 4.3% a year over 3 years.

🟢 EBITDA has grown at 25.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 2.2% over 3 years.

🟢 PAT (Net Profit) has grown at 32.7% a year over 3 years.

🟢 EPS has grown at 32.6% a year over 3 years.

🟢 ROE has risen from 7.5% to 12.6% over 3 years (+5.1 pts).

🟢 ROCE has risen from 11.2% to 18.6% over 3 years (+7.4 pts).

🟢 Free Cash Flow has grown at 8.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.6%

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

6 general

Shree Metalloys Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Shree Metalloys Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

Sensex falls 367 points, Nifty 50 ends below 26,050— 10 key highlights from the Indian stock market today

Livemint, 26 Dec

SHREE METALLOYS LTD. Share Price - Live SHREMETAL Stock Price & Chart

Upstox, 03 Apr

SHREMETAL Stock Price and Chart — BSE:SHREMETAL

TradingView, 28 Jul

Copper Penny Stocks in India for 2026, Best Low-Price Copper Stocks for High Growth

Univest, 12 Mar

Watch Items

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.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑