Sintercom India Limited

Consumer Cyclical — Auto Parts · NSE

₹78.00+₹1.99 (+2.62%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 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 Sintercom India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sintercom India Limited engages in the manufacturing and sale of sintered metal components and auto components in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees76

Annual revenue₹101 Cr

How does it make money?

Turns over ₹101 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 76 employees supports ₹1.32 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin17.4%

Net margin1.4%

Revenue / employee₹1.32 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Little sign of one

Returns on capital of 5.9% 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.

ROCE5.9%

ROE1.4%

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +25% while net margin moved -14208% 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+25%

Margin effect-14208%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 1.4% is weak

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

48/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

132.2x

2Y Median

315.1x

28 monthly readings · mean 331.8x · range 149.4x–508.3x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 58% below its 2y median of 315.1x. 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 189% above the peer median of 45.7x.

vs. its own history

Cheap

315.1x median over 28 months · -58%

vs. sector peers

Expensive

45.7x median of 4 peers · +189%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

132.2x

P/B

2.11x

EV/EBITDA

15.3x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 14.4% to 17.4% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 3.0% to 5.9%.
Valuation below its historical average
At 132.2x the stock trades 58% below its own median of 315.1x.

🔴 What Needs Attention3

Debt is rising
Total debt is up 89% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 104% against revenue growth of 25% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 50% against revenue growth of 25% — stock may not be moving.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 89% over 3 years, from ₹28 Cr to ₹53 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 104% against revenue up 25% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 50% against revenue up 25% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.4% to 17.4%. 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 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.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.0x 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 104% against revenue up 25%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 189% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 7.8% 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 15%✓ 17.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.0x
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✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 6% a year✓ 7.8% CAGR
Latest reported year was 17.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.

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

5 good · 3 neutral · 3 weak

Market Cap

₹215 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

132.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.11x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.59

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

5.9%

Weak

Low return on total capital employed

Debt/Equity

0.52x

Low

Conservative leverage

Revenue Growth (YoY)

17.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

80.0%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹78

Operating Margin

8.7%

Average

Average margins

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.75

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

76.4 / 78.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹80 Cr	₹87 Cr	₹90 Cr	₹101 Cr	+7.8%
EBITDA	₹12 Cr	₹14 Cr	₹15 Cr	₹18 Cr	+14.8%
EBITDA Margin	14.4%	15.9%	16.5%	17.4%	—
PAT (Net Profit)	-₹0 Cr	₹1 Cr	₹1 Cr	₹1 Cr	—
EPS	₹-0	₹0.42	₹0.24	₹0.52	—
ROE	-0.0%	1.1%	0.7%	1.4%	—
ROCE	3.0%	4.4%	4.9%	5.9%	—
Total Debt	₹28 Cr	₹34 Cr	₹48 Cr	₹53 Cr	+23.7%
Free Cash Flow	-₹1 Cr	-₹1 Cr	-₹9 Cr	₹2 Cr	—

🟢 Revenue has grown at 7.8% a year over 3 years.

🟢 EBITDA has grown at 14.8% a year over 3 years.

🟢 EBITDA Margin has risen from 14.4% to 17.4% over 3 years (+3.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-0 to ₹0.52.

🟢 ROE has risen from -0.0% to 1.4% over 3 years (+1.4 pts).

🟢 ROCE has risen from 3.0% to 5.9% over 3 years (+2.9 pts).

🔴 Total Debt has grown at 23.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹205 Cr

Total Liabilities

₹102 Cr

Total Debt

₹53 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

23.9%

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive2 mixed3 general

Sintercom India vs Nifty 50: 1Y Return -40.27% vs -9.64%

Univest, 14 Oct

Sintercom India Q2 2026 Earnings: Revenue Climbs 11.87% YoY to ₹100.70 Crore, EPS at ₹0.52, Shares Slip 7.06%

https://www.siam.in/, 02 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Sintercom India (NSE: SINTERCOM): Under-the-Radar Watch

Kalkine India, 10 Sept

Sintercom India Share Price rises 8.38%: valuation view

Univest, 22 SeptPrice 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.

Sintercom India Reports Audited FY26 Results: Revenue Up, Profit More Than Doubles

scanx.trade, 18 MayResults

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

MENNPIS Stock Price and Chart — NSE:MENNPIS

TradingView, 20 Apr

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟡Financial HealthAdequate11.8/20

🔴GrowthWeak7.6/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair8.3/15

🔴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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 15%17.4%
✗Debt / EBITDA falls below 3x3.0x
✗Interest cover stays above 3x1.5x
✓Revenue growth stays above 6% a year7.8% CAGR
✓Free cash flow remains positive₹2 Cr