SIS Limited

Industrials — Security & Protection Services · NSE

₹405.00+₹1.55 (+0.38%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by small-cap size, which brings sharper price swings.

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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

SIS Limited, together with its subsidiaries, provides security and related services in India, Australia, Singapore, and New Zealand. It operates through three segments: Security Services (India), Security Services (International), and Facility Management.

IndustrySecurity & Protection Services

SectorIndustrials

Employees3,52,939

Annual revenue₹15,787 Cr

How does it make money?

Turns over ₹15,787 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 3,52,939 employees supports ₹4.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹4.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. 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 6.6% 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 ROE15.2%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 5.8% and earnings to grow about 27.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+5.8%

Est. earnings growth+27.5%

Analysts3

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +41% while net margin moved -72% 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+41%

Margin effect-72%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 6.6% is below 10% — capital is not working hard
✗ ROCE has fallen by 4.9 points — returns are eroding
✗ EBITDA margin of 5.0% is thin — little cushion if costs rise
✗ Net margin of 0.9% is slim
• Revenue has compounded at 12.0% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

49/ 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

39.6x

3Y Median

29.8x

40 monthly readings · mean 148.7x · range 17.3x–521.5x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 33% above its 3y median of 29.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 55% below the peer median of 88.8x.

vs. its own history

Expensive

29.8x median over 40 months · +33%

vs. sector peers

Cheap

88.8x median of 3 peers · -55%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

8.4x

PEG

3.44

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 1297% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 14.8% to 5.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.5% to 6.6% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 60% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 55% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 price already assumes success
The stock trades 33% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 14.8% to 5.4%. 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
Small 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

1Revenue growth stays above 9% a year✓ 12.0% CAGR
Latest reported year was 29.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹581 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹5,628 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.25x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.23

Profitable

Profitable on a per-share basis

ROE

5.4%

Weak

Weak capital efficiency

ROCE

6.6%

Weak

Low return on total capital employed

Debt/Equity

0.70x

Moderate

Moderate leverage

Revenue Growth (YoY)

29.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.46%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹581 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

12.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.1%

Weak

Thin margins leave little room for error

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

66%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

413.7 / 420.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11,224 Cr	₹12,160 Cr	₹13,086 Cr	₹15,787 Cr	+12.0%
EBITDA	₹528 Cr	₹581 Cr	₹382 Cr	₹787 Cr	+14.2%
EBITDA Margin	4.7%	4.8%	2.9%	5.0%	—
PAT (Net Profit)	₹346 Cr	₹190 Cr	₹12 Cr	₹138 Cr	-26.5%
EPS	₹23.43	₹12.97	₹0.81	₹9.65	-25.6%
ROE	14.8%	7.9%	0.5%	5.4%	—
ROCE	11.5%	14.0%	6.3%	6.6%	—
Total Debt	₹1,647 Cr	₹1,658 Cr	₹1,645 Cr	₹1,789 Cr	+2.8%
Free Cash Flow	₹42 Cr	₹231 Cr	₹589 Cr	₹581 Cr	+140.8%

🟢 Revenue has grown at 12.0% a year over 3 years.

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

🟡 EBITDA Margin has held roughly flat at 5.0% over 3 years.

🔴 PAT (Net Profit) has shrunk at 26.5% a year over 3 years.

🔴 EPS has shrunk at 25.6% a year over 3 years.

🔴 ROE has fallen from 14.8% to 5.4% over 3 years (-9.4 pts).

🔴 ROCE has fallen from 11.5% to 6.6% over 3 years (-4.9 pts).

🔴 Total Debt has grown at 2.8% a year over 3 years.

🟢 Free Cash Flow has grown at 140.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,632 Cr

Total Liabilities

₹5,087 Cr

Cash & Equivalents

₹779 Cr

Operating Cash Flow

₹770 Cr

Capex

-₹189 Cr

Shareholding (proxy)

Institutional Holding

19.1%

Insider Holding

73.0%

Corporate Actions

Dividend Rate

₹14

Ex-Dividend Date

06 Feb 2026

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹453.67

+12.0% vs CMP

Target Range

₹400 – ₹511

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

3 positive2 mixed1 general

SIS buys back 25,000 shares at avg ₹422.55 on Sept 25

scanx.trade, 25 Sept

SIS Share Price rises 5.57% on price action, valuations

Univest, 29 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.

SIS Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

SIS Board Approves Share Buyback At ₹478.50 Per Share

Sahi, 05 AugCapital return

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

SIS announces ₹120 crore share buyback, fifth since listing; check details

Livemint, 30 JunCapital return

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

Buyback alert! This security solutions stock rallied 12% on buyback update. Do you own?

The Economic Times, 24 JunCapital return

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

Watch Items

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

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Growth · Profitability

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