SM Auto Stamping Limited

Consumer Cyclical — Auto Parts · BSE

₹30.00₹0.00 (0.00%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, 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, 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 SM Auto Stamping Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SM Auto Stamping Limited manufactures and sells precision sheet metal stamping and deep drawn components for automobile and engineering sectors in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees147

Annual revenue₹65 Cr

How does it make money?

Turns over ₹65 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 147 employees supports ₹43.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin8.5%

Net margin5.2%

Revenue / employee₹43.9 lakh

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 14.1% 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.

ROCE14.1%

ROE13.9%

Peer median ROE23.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +6% while net margin moved -4% 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+6%

Margin effect-4%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.9% — barely ahead of inflation
✗ Profit CAGR of only 0.3%
✗ Profit fell 10.6% in the latest year

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

65/ 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

12.2x

3Y Median

13.4x

40 monthly readings · mean 15.2x · range 7.6x–24.6x

Sector Median

45.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 13.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 73% below the peer median of 45.7x.

vs. its own history

Fair

13.4x median over 40 months · -8%

vs. sector peers

Cheap

45.7x median of 4 peers · -73%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.2x

P/B

1.59x

EV/EBITDA

8.8x

PEG

35.54

Dividend Yield

5.00%

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 16.9% to 13.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.5% to 14.1% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 73% 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?

Growth barely outpaces inflation
Revenue compounding at 1.9% 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.
Returns on shareholder capital are falling
ROE has dropped from 16.9% to 13.0%. 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.
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 7%✓ 8.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 1.9% CAGR
Latest reported year was 4.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 14.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹41 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.2x

Cheap

Cheap against the generic band

P/B Ratio

1.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.45

Profitable

Profitable on a per-share basis

ROE

13.9%

Moderate

Moderate capital efficiency

ROCE

14.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

4.8%

Modest

Modest growth

Profit Growth (YoY)

-10.6%

Falling

Profits are shrinking

Dividend Yield

5.00%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹30

ROA

4.8%

Average

Average asset productivity

Operating Margin

6.6%

Average

Average margins

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

1.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.55

Defensive

Steadier than the market

52W Range Position

79%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

28.1 / 29.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

63.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹61 Cr	₹60 Cr	₹60 Cr	₹65 Cr	+1.9%
EBITDA	₹6 Cr	₹6 Cr	₹5 Cr	₹6 Cr	-0.3%
EBITDA Margin	9.1%	10.6%	8.8%	8.5%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹3 Cr	₹3 Cr	+0.3%
EPS	₹2.32	₹2.52	₹2.28	—	—
ROE	16.9%	18.4%	13.9%	13.0%	—
ROCE	24.5%	26.3%	16.3%	14.1%	—
Total Debt	₹7 Cr	₹6 Cr	₹3 Cr	₹8 Cr	+1.0%
Free Cash Flow	₹3 Cr	₹4 Cr	-₹1 Cr	-₹0 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.9% a year).

🟡 EBITDA has been broadly flat over 3 years (-0.3% a year).

🟡 EBITDA Margin has held roughly flat at 8.5% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.3% a year).

🔴 ROE has fallen from 16.9% to 13.0% over 3 years (-4.0 pts).

🔴 ROCE has fallen from 24.5% to 14.1% over 3 years (-10.4 pts).

🟡 Total Debt has been broadly flat over 3 years (1.0% a year).

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹42 Cr

Total Liabilities

₹16 Cr

Total Debt

₹8 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.8%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

01 Sept 2026

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

2 positive4 general

SM Auto Stamping seeks approval for ₹15.8 crore related party transactions

scanx.trade, 07 Sept

SM Auto Stamping Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

CREST VENTURES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 17 Oct

SM Auto Stamping approves FY26 dividend, reappoints Mukund Narayan Kulkarni

scanx.trade, 07 SeptCapital return

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

P&G Hygiene, Taj Gvk Hotels, Jindal Drilling, Suprajit Engineering, Vadilal Dividends: Last Day To Buy Shares To Qualify

NDTV Profit, 31 Aug

Dividend stocks: Jindal Drilling, Procter & Gamble, Suprajit Engg, Maharashtra Seamless to turn ex-date today

Business Today, 01 SeptCapital 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

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong13.2/20

🔴GrowthWeak7.4/20

🔴ProfitabilityWeak6/15

🟢ValuationAttractive10.7/15

🟡RiskModerate5.4/10

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.

This thesis breaks if

✓EBITDA margin holds above 7%8.5%
✗Free cash flow remains positive-₹0 Cr
✗Revenue growth stays above 4% a year1.9% CAGR
✓Debt / EBITDA stays below 2x1.4x
✓ROCE stays above 11%14.1%