Shreyans Industries Limited

Basic Materials — Paper & Paper Products · NSE

₹152.00+₹4.55 (+3.09%)

DalalBaazaar Score

35 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 6:10 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 Shreyans Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shreyans Industries Limited engages in the manufacture and sale of writing and printing papers and soda ash in India and internationally.

IndustryPaper & Paper Products

SectorBasic Materials

Employees1,354

Annual revenue₹623 Cr

How does it make money?

Turns over ₹623 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 1,354 employees supports ₹46.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin3.3%

Net margin1.0%

Revenue / employee₹46.0 lakh

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.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Little sign of one

Returns on capital of 2.3% 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.

ROCE2.3%

ROE1.5%

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -28% while net margin moved -88% 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-28%

Margin effect-88%

DalalBaazaar Score

35/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.4% a year
✗ Profit has declined at 55.5% a year
✗ Profit fell 87.2% in the latest year

Quality vs. Valuation

Company Quality

31/ 100

Weak

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

Valuation

44/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.49x

EV/EBITDA

13.2x

PEG

—

Dividend Yield

0.99%

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 13.1% to 3.3% over 3 years.
Debt is rising
Total debt is up 45% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 24.3% to 1.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.6% to 2.3% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.9 points, from 13.1% to 3.3%.
🟡Debt is increasingFinancial
Total debt is up 45% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 19.0x to 3.1x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹38 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 91% over 3 years.

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 13.1% to 3.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 24.3% to 1.5%. 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

1EBITDA margin holds above 1%✓ 3.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 3.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹38 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 2.3%
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

2 good · 3 neutral · 6 weak

Market Cap

₹210 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.49x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-10.14

Loss-making

Negative earnings per share — the business is losing money

ROE

1.5%

Weak

Weak capital efficiency

ROCE

2.3%

Weak

Low return on total capital employed

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

4.2%

Modest

Modest growth

Profit Growth (YoY)

-87.2%

Falling

Profits are shrinking

Dividend Yield

0.99%

Modest

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

Free Cash Flow

-₹38 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹152

P/E (Forward)

5.5x

Operating Margin

-7.8%

Weak

Thin margins leave little room for error

Net Margin

-2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

131.8 / 131.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

81.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹865 Cr	₹699 Cr	₹617 Cr	₹623 Cr	-10.4%
EBITDA	₹114 Cr	₹101 Cr	₹74 Cr	₹20 Cr	-43.5%
EBITDA Margin	13.1%	14.4%	12.0%	3.3%	—
PAT (Net Profit)	₹73 Cr	₹87 Cr	₹51 Cr	₹6 Cr	-55.5%
EPS	₹53.14	₹63.24	₹36.6	₹4.68	-55.5%
ROE	24.3%	22.8%	11.9%	1.5%	—
ROCE	28.6%	27.5%	14.7%	2.3%	—
Total Debt	₹42 Cr	₹34 Cr	₹45 Cr	₹61 Cr	+13.2%
Free Cash Flow	₹84 Cr	₹53 Cr	-₹1 Cr	-₹38 Cr	—

🔴 Revenue has shrunk at 10.4% a year over 3 years.

🔴 EBITDA has shrunk at 43.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.1% to 3.3% over 3 years (-9.9 pts).

🔴 PAT (Net Profit) has shrunk at 55.5% a year over 3 years.

🔴 EPS has shrunk at 55.5% a year over 3 years.

🔴 ROE has fallen from 24.3% to 1.5% over 3 years (-22.8 pts).

🔴 ROCE has fallen from 28.6% to 2.3% over 3 years (-26.3 pts).

🔴 Total Debt has grown at 13.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹84 Cr to -₹38 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹634 Cr

Total Liabilities

₹207 Cr

Total Debt

₹61 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹53 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.6%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

05 Aug 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 positive5 general

Shreyans Industries vs Nifty 50: 1Y Return -42.31% vs -10.93%

Univest, 12 Oct

Shreyans Industries Trading Window Closed October 2026

Kalkine India, 26 Sept

Shreyans Industries fixes record date for FY26 dividend

scanx.trade, 18 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Adinath Textiles Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Top 3 Smallcap Stocks for 2026

Equitymaster, 21 Jan

Shreyans Industries AGM resolutions pass with 99.8% support

scanx.trade, 12 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟢Financial HealthStrong13/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak3.4/15

🟡ValuationFair7.1/15

🔴RiskHigh4.4/10

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

This thesis breaks if

✓EBITDA margin holds above 1%3.3%
✗Debt / EBITDA stays below 2x3.0x
✗Free cash flow remains positive-₹38 Cr
✓Interest cover stays above 3x3.1x
✗ROCE stays above 8%2.3%