Sicagen India Limited

Basic Materials — Steel · NSE

₹50.56+₹0.10 (+0.20%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by 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 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, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Sicagen India Limited, together with its subsidiaries, engages in the trade and distribution of building materials in India and internationally. The company operates through Trading and Manufacturing segments.

IndustrySteel

SectorBasic Materials

Employees276

Annual revenue₹965 Cr

How does it make money?

Turns over ₹965 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 276 employees supports ₹3.50 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin5.1%

Net margin1.9%

Revenue / employee₹3.50 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Little sign of one

Returns on capital of 6.9% 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.

ROCE6.9%

ROE3.7%

Peer median ROE10.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +8% while net margin moved -6% 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+8%

Margin effect-6%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.7% is weak

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

74/ 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

9.8x

Sector Median

18.2x

median of 4 sector peers

🟢Against its sector it trades 46% below the peer median of 18.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

18.2x median of 4 peers · -46%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.8x

P/B

0.40x

EV/EBITDA

6.8x

PEG

21.01

Dividend Yield

1.98%

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 294% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 31% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 30% against revenue growth of 8% — customers are taking longer to pay.

Red Flags

2 items require attention · 2 watch

🟡Debt is increasingFinancial
Total debt is up 31% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 30% against revenue up 8% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 46% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹38 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

The debt load needs earnings to hold up
Debt is 3.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 30% against revenue up 8%. 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 2.7% 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.
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 3%✓ 5.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 2.7% CAGR
Latest reported year was 39.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹38 Cr
Profit that never becomes cash eventually stops being profit.

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

7 good · 2 neutral · 2 weak

Market Cap

₹200 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.8x

Cheap

Cheap against the generic band

P/B Ratio

0.40x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.17

Profitable

Profitable on a per-share basis

ROE

3.7%

Weak

Weak capital efficiency

ROCE

6.9%

Weak

Low return on total capital employed

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

39.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

52.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.98%

Modest

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

Free Cash Flow

₹38 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹50.56

Operating Margin

3.5%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

53%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

51.6 / 55.0

Bearish alignment (short < long)

RSI (14)

39.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹890 Cr	₹790 Cr	₹885 Cr	₹965 Cr	+2.7%
EBITDA	₹33 Cr	₹35 Cr	₹44 Cr	₹49 Cr	+14.2%
EBITDA Margin	3.7%	4.4%	5.0%	5.1%	—
PAT (Net Profit)	₹18 Cr	₹11 Cr	₹17 Cr	₹18 Cr	+0.5%
EPS	₹4.5	₹2.66	₹4.32	₹4.57	+0.5%
ROE	4.1%	2.3%	3.5%	3.7%	—
ROCE	6.6%	5.0%	6.9%	6.9%	—
Total Debt	₹121 Cr	₹121 Cr	₹147 Cr	₹159 Cr	+9.5%
Free Cash Flow	₹10 Cr	₹20 Cr	₹30 Cr	₹38 Cr	+58.0%

🟢 Revenue has grown at 2.7% a year over 3 years.

🟢 EBITDA has grown at 14.2% a year over 3 years.

🟢 EBITDA Margin has risen from 3.7% to 5.1% over 3 years (+1.4 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.5% a year).

🟡 EPS has been broadly flat over 3 years (0.5% a year).

🟡 ROE has held roughly flat at 3.7% over 3 years.

🟡 ROCE has held roughly flat at 6.9% over 3 years.

🔴 Total Debt has grown at 9.5% a year over 3 years.

🟢 Free Cash Flow has grown at 58.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹740 Cr

Total Liabilities

₹245 Cr

Total Debt

₹159 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

₹44 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

2.4%

Insider Holding

69.3%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

10 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

2 positive2 mixed2 general

Sicagen India Ltd. Share Price Rise: Price and Valuation

Univest, 07 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Should You Buy Sicagen India Limited (NSE:SICAGEN) For Its Upcoming Dividend?

Simply Wall Street, 06 SeptCapital return

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

Compare with SICAGEN INDIA

Equitymaster, 09 Oct

Sicagen India consolidated net profit rises 52.64% in the June 2026 quarter

Business Standard, 10 AugResults

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

Sicagen India AGM passes all resolutions with near-unanimous shareholder vote

scanx.trade, 17 Sept

Sicagen India Ltd. Share Price Falls 10%: Full Analysis

Univest, 11 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong16.3/20

🔴GrowthWeak7.4/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive13/15

🟡RiskModerate5.2/10

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.

This thesis breaks if

✓EBITDA margin holds above 3%5.1%
✗Debt / EBITDA falls below 3x3.3x
✓Interest cover stays above 3x3.4x
✗Revenue growth stays above 4% a year2.7% CAGR
✓Free cash flow remains positive₹38 Cr