Sizemasters Technology Limited

Industrials — Tools & Accessories · BSE

₹385.95+₹1.30 (+0.34%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

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: Strong business and financial position, 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, 6:08 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 Sizemasters Technology Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sizemasters Technology Limited manufactures and sells thread gauges, plain gauges, multi gauging, taper gauges, spline gauges, and PCD and relation gauges in India and internationally.

IndustryTools & Accessories

SectorIndustrials

Annual revenue₹36 Cr

How does it make money?

Turns over ₹36 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation.

EBITDA margin16.9%

Net margin11.3%

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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 26.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE26.5%

ROE22.4%

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +5224% while net margin moved -37% 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+5224%

Margin effect-37%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

53/ 100

Fair

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

96.2x

3Y Median

101.3x

40 monthly readings · mean 326.8x · range 57.2x–1704.3x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 101.3x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 88.8x.

vs. its own history

Fair

101.3x median over 40 months · -5%

vs. sector peers

Fair

88.8x median of 3 peers · +8%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

96.2x

P/B

—

EV/EBITDA

63.1x

PEG

0.43

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Cash generation is improving
Free cash flow is up 8285% over 3 years.
Return on equity is rising
ROE has improved from 1.2% to 22.4%.
Return on capital is rising
ROCE has improved from 1.7% to 26.5%.
High return on capital employed
ROCE of 26.5% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 26.7% to 16.9% over 3 years.
Debt is rising
Total debt is up 574% over 3 years — worth checking what it funded.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 574% over 3 years, from ₹0 Cr to ₹3 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.8 points, from 26.7% to 16.9%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹9 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?

Margins are being competed away
EBITDA margin has fallen from 26.7% to 16.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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
2 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 207% a year✓ 276.2% CAGR
Latest reported year was 113.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹9 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 26.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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 · 3 neutral · 1 weak

Market Cap

₹386 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

96.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹4.01

Profitable

Profitable on a per-share basis

ROE

22.4%

Strong

Strong capital efficiency

ROCE

26.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

113.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

67.4%

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

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹385.95

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.57

Comfortable

Healthy short-term liquidity

52W Range Position

85%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

393.1 / 320.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹13 Cr	₹17 Cr	₹36 Cr	+276.2%
EBITDA	₹0 Cr	₹2 Cr	₹3 Cr	₹6 Cr	+223.3%
EBITDA Margin	26.7%	19.4%	20.3%	16.9%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	₹2 Cr	₹4 Cr	+222.9%
EPS	₹0.14	₹1.79	₹2.43	₹4.07	+207.5%
ROE	1.2%	15.5%	17.2%	22.4%	—
ROCE	1.7%	20.9%	12.4%	26.5%	—
Total Debt	₹0 Cr	₹12 Cr	₹13 Cr	₹3 Cr	+88.9%
Free Cash Flow	₹0 Cr	-₹1 Cr	₹0 Cr	₹9 Cr	+337.7%

🟢 Revenue has grown at 276.2% a year over 3 years.

🟢 EBITDA has grown at 223.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 26.7% to 16.9% over 3 years (-9.8 pts).

🟢 PAT (Net Profit) has grown at 222.9% a year over 3 years.

🟢 EPS has grown at 207.5% a year over 3 years.

🟢 ROE has risen from 1.2% to 22.4% over 3 years (+21.2 pts).

🟢 ROCE has risen from 1.7% to 26.5% over 3 years (+24.8 pts).

🔴 Total Debt has grown at 88.9% a year over 3 years.

🟢 Free Cash Flow has grown at 337.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹32 Cr

Total Liabilities

₹13 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

92.9%

Corporate Actions

Ex-Dividend Date

26 Dec 1996

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

1 mixed5 general

Sizemasters Technology Ltd is Rated Hold

MarketsMojo, 18 Oct

Sizemasters Technology Share Price near all-time high,

Univest, 07 Oct

Sizemasters Technology Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 01 Oct

Sizemasters Technology shareholders approve all 33rd AGM resolutions

scanx.trade, 18 Sept

Sizemasters Technology Ltd. Share Price Declines by 9.99%

Univest, 05 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.

Sizemasters Technology hits upper circuit after incorporating new subsidiary Sizemasters Mould-Tech

Alice Blue, 17 Feb

Watch Items

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.

DalalBaazaar Thesis

🟡Business QualityAdequate12.6/20

🟢Financial HealthStrong15.6/20

🟡GrowthModest12.9/20

🟢ProfitabilityStrong10.6/15

🔴ValuationDemanding6/15

🔴RiskHigh2.3/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 207% a year276.2% CAGR
✓EBITDA margin holds above 15%16.9%
✓Free cash flow remains positive₹9 Cr
✓Debt / EBITDA stays below 2x0.5x
✓ROCE stays above 23%26.5%