Shelter Infra Projects Limited

Industrials — Engineering & Construction · BSE

₹16.40−₹0.02 (−0.12%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:53 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shelter Infra Projects Limited engages in the infrastructure and real estate businesses in India and internationally. It provides geo-technical, foundation, civil, public health, and structural engineering design and construction works.

IndustryEngineering & Construction

SectorIndustrials

Employees12

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹-2 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹18.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹18.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS 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 4.3% 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.

Peer median ROE14.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +67% while net margin moved -93% 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+67%

Margin effect-93%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✓ ROE has improved by 9.3 points over the period

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

31/ 100

Expensive

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.

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

22.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 3.8% to 31.4% over 3 years.
Debt is being paid down
Total debt is down 44% over 3 years.
Cash generation is improving
Free cash flow is up 146% over 3 years.
Return on equity is rising
ROE has improved from -10.5% to -1.2%.
Return on capital is rising
ROCE has improved from -1.1% to 4.3%.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.63x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.9x to 1.0x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.99 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.8% to 31.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 44% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 14.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 14% a year✓ 18.7% CAGR
Latest reported year was -7.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 29%✓ 31.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 14.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹6 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

1.54x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.51

Loss-making

Negative earnings per share — the business is losing money

ROE

-1.2%

Weak

Weak capital efficiency

ROCE

4.3%

Weak

Low return on total capital employed

Debt/Equity

2.63x

High

High leverage

Revenue Growth (YoY)

-7.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-119.7%

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 generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-1.8%

Weak

Thin margins leave little room for error

Net Margin

-8.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.99

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

55%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

15.4 / 14.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

62.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+18.7%
EBITDA	₹0 Cr	-₹0 Cr	₹0 Cr	₹1 Cr	+140.4%
EBITDA Margin	3.8%	-0.5%	18.5%	31.4%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹-1.13	₹-0.53	₹0.65	₹-0.13	—
ROE	-10.5%	-5.2%	6.0%	-1.2%	—
ROCE	-1.1%	-2.4%	2.2%	4.3%	—
Total Debt	₹18 Cr	₹18 Cr	₹11 Cr	₹10 Cr	-17.6%
Free Cash Flow	₹0 Cr	₹0 Cr	₹2 Cr	₹1 Cr	+35.0%

🟢 Revenue has grown at 18.7% a year over 3 years.

🟢 EBITDA has grown at 140.4% a year over 3 years.

🟢 EBITDA Margin has risen from 3.8% to 31.4% over 3 years (+27.6 pts).

🟢 ROE has risen from -10.5% to -1.2% over 3 years (+9.3 pts).

🟢 ROCE has risen from -1.1% to 4.3% over 3 years (+5.4 pts).

🟢 Total Debt has shrunk at 17.6% a year over 3 years.

🟢 Free Cash Flow has grown at 35.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹33 Cr

Total Liabilities

₹29 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.7%

Corporate Actions

Ex-Dividend Date

29 Aug 2011

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 negative5 general

Shelter Infra Projects holds 54th AGM, discusses FY26 performance

scanx.trade, 15 Oct

Top 15 Low-Price Stocks In India To Buy In October 2026

Samco, 17 Oct

Shelter Infra Projects passes all AGM resolutions with 99.94% support

scanx.trade, 28 Sept

Uttarakhand CM Dhami inaugurates ₹7.23 crore gaushala, launches ₹108.84 crore projects in Khatima

Livemint, 24 Sept

Shilchar Technologies standalone net profit declines 49.72% in the June 2026 quarter

Business Standard, 12 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

S&P 500 edges down 0.07% to close at 7,806.39

scanx.trade, 12 Oct

Watch Items

Revenue growth is negative (-7.3%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health

WeakProfitability · Valuation · Risk

Points for each in the Score ↑

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

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑