Sinnar Bidi Udyog Limited

Consumer Defensive — Tobacco · BSE

₹589.10−₹30.90 (−4.98%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sinnar Bidi Udyog Limited processes and trades in tobacco to bidi manufacturers in India. The company was incorporated in 1974 and is headquartered in Nasik, India.

IndustryTobacco

SectorConsumer Defensive

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹-3 reaches shareholders as profit, with ₹-4 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are ITC LTD, HINDUSTAN UNILEVER LTD., NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. 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 -1.8% 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 ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -23% while net margin moved -139% 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-23%

Margin effect-139%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 8.4% a year
✗ Profit fell 7.7% in the latest year

Quality vs. Valuation

Company Quality

27/ 100

Weak

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

Valuation

21/ 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

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.2% to -3.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 6.7% to -1.8% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 10.2% to -3.1%. 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.
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 -6%✓ -3.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ -1.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

0 good · 4 neutral · 7 weak

Market Cap

₹24 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

5.54x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-6.3

Loss-making

Negative earnings per share — the business is losing money

ROE

-3.1%

Weak

Weak capital efficiency

ROCE

-1.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

3.5%

Modest

Modest growth

Profit Growth (YoY)

-7.7%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-8.1%

Weak

Thin margins leave little room for error

Net Margin

-5.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.24

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

668.3 / 684.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

20.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹5 Cr	₹5 Cr	₹5 Cr	-8.4%
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
EBITDA Margin	-3.1%	-0.6%	-4.1%	-3.8%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹11.05	₹2.99	₹-3.11	₹-3.35	—
ROE	10.2%	2.7%	-2.8%	-3.1%	—
ROCE	6.7%	2.7%	-1.9%	-1.8%	—
Free Cash Flow	-₹1 Cr	₹4 Cr	-₹1 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 8.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at -3.8% over 3 years.

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹11.05 to ₹-3.35.

🔴 ROE has fallen from 10.2% to -3.1% over 3 years (-13.4 pts).

🔴 ROCE has fallen from 6.7% to -1.8% over 3 years (-8.5 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹10 Cr

Total Liabilities

₹6 Cr

Total Debt

—

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.9%

Corporate Actions

Ex-Dividend Date

02 Sept 2004

Peer Comparison

Company	P/E	ROE
ITC LTD	16.6x	27.4%
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

6 general

Sinnar Bidi Udyog Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

Elitecon International Ltd Share Price

Business Today, 16 Oct

Sinnar Bidi Udyog approves FY26 financials, appoints Sachin Laddha as independent director

scanx.trade, 23 Sept

Sinnar Bidi Udyog Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Sinnar Bidi Udyog Ltd

Equitypandit, 29 Aug

Sinnar Bidi Udyog sets Sept 23 AGM; e-voting starts Sept 19

scanx.trade, 21 Aug

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

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.

2 of 3 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑