Solitaire Machine Tools Limited

Industrials — Tools & Accessories · BSE

₹91.00+₹0.50 (+0.55%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Solitaire Machine Tools Limited designs, manufactures, and sells precision centerless grinders in India and internationally. The company offers centerless grinders, double disc grinding machines, and BMS machines.

IndustryTools & Accessories

SectorIndustrials

Employees70

Annual revenue₹19 Cr

How does it make money?

Turns over ₹19 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 70 employees supports ₹27.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹27.2 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 8.6% 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 has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +2% while net margin moved -17% 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+2%

Margin effect-17%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.7% — barely ahead of inflation
✗ Profit has declined at 5.5% a year

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

62/ 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

26.5x

3Y Median

24.6x

40 monthly readings · mean 25.2x · range 14.9x–39.1x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 24.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 70% below the peer median of 88.8x.

vs. its own history

Fair

24.6x median over 40 months · +8%

vs. sector peers

Cheap

88.8x median of 3 peers · -70%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.21x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 12.5% to 8.6% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 679% over 3 years, from ₹1 Cr to ₹4 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 70% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹4 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?

Growth barely outpaces inflation
Revenue compounding at 0.7% 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.
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 13%✓ 14.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 0.7% CAGR
Latest reported year was 84.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 5 neutral · 1 weak

Market Cap

₹41 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.5x

Fair

Fairly valued against the generic band

P/B Ratio

2.06x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.43

Profitable

Profitable on a per-share basis

ROE

6.7%

Weak

Weak capital efficiency

ROCE

8.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

84.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

533.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.65%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.1%

Average

Average margins

Net Margin

7.5%

Average

Average bottom-line conversion

Current Ratio

2.05

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

91.0 / 94.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹19 Cr	₹21 Cr	₹22 Cr	₹19 Cr	+0.7%
EBITDA	₹3 Cr	₹3 Cr	₹3 Cr	₹3 Cr	-2.2%
EBITDA Margin	16.2%	13.5%	14.7%	14.8%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹2 Cr	₹1 Cr	-5.5%
EPS	₹3.51	₹3.97	₹5.16	₹2.96	-5.5%
ROE	9.4%	10.0%	12.0%	6.7%	—
ROCE	12.5%	12.4%	13.0%	8.6%	—
Total Debt	₹1 Cr	₹2 Cr	₹6 Cr	₹4 Cr	+98.3%
Free Cash Flow	-₹0 Cr	-₹2 Cr	-₹3 Cr	₹4 Cr	—

🟡 Revenue has been broadly flat over 3 years (0.7% a year).

🔴 EBITDA has shrunk at 2.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.2% to 14.8% over 3 years (-1.3 pts).

🔴 PAT (Net Profit) has shrunk at 5.5% a year over 3 years.

🔴 EPS has shrunk at 5.5% a year over 3 years.

🔴 ROE has fallen from 9.4% to 6.7% over 3 years (-2.7 pts).

🔴 ROCE has fallen from 12.5% to 8.6% over 3 years (-3.9 pts).

🔴 Total Debt has grown at 98.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹29 Cr

Total Liabilities

₹9 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.6%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

19 Jun 2026

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 positive5 general

Solitaire Machine Tools Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Solitaire Machine Tools Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

HDFC Bank, Tata Motors PV, Polycab India, HDFC Life record date on June 19: Last date to buy for payout

Upstox, 18 Jun

Axis Bank Ltd spurts 1.96%, gains for third straight session

Business Standard, 29 Jan

Dividend Stocks To Watch: HDFC Bank, Tata Motors PV, HDFC Life Insurance, And Tata Technologies

NDTV Profit, 14 JunCapital return

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

Dividends, bonuses and stock splits in June 2026: Reliance Industries, HDFC Bank, Infosys, LIC, Tata Steel, Adani Ports, others in focus

Upstox, 29 May

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation · Risk

WeakBusiness Quality · Growth · Profitability

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑