SPEL Semiconductor Limited

Technology — Semiconductors · BSE

₹112.95₹0.00 (0.00%)

DalalBaazaar Score

29 / 100

🔴 Weak

Verdict

HIGH RISK

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, 6:05 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

SPEL Semiconductor Limited provides contract manufacturing services for semiconductor companies in India.

IndustrySemiconductors

SectorTechnology

Employees103

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹-380 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 103 employees supports ₹6.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin17.4%

Net margin-379.6%

Revenue / employee₹6.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of -47.1% 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.

ROCE-47.1%

ROE-783.1%

Peer median ROE32.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -44% while net margin moved +1272% 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-44%

Margin effect+1272%

DalalBaazaar Score

29/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking
✗ P/B of 168.08x is a steep premium to book

Quality vs. Valuation

Company Quality

32/ 100

Weak

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

Valuation

20/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

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

P/E (Trailing)

Not meaningful

P/B

168.08x

EV/EBITDA

497.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 18% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 95.6% to 17.4% over 3 years.
Return on equity is falling
ROE has dropped from -6.2% to -783.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from -2.3% to -47.1% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.53 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 4 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 6.86x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -3.7x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹24 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 78.2 points, from 95.6% to 17.4%.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.53 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 18% 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?

Margins are being competed away
EBITDA margin has fallen from 95.6% to 17.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 19.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from -6.2% to -783.1%. 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
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 15%✓ 17.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 19.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ -3.7x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹13 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -47.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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 · 2 neutral · 8 weak

Market Cap

₹521 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

168.08x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-4.24

Loss-making

Negative earnings per share — the business is losing money

ROE

-783.1%

Weak

Weak capital efficiency

ROCE

-47.1%

Weak

Low return on total capital employed

Debt/Equity

6.86x

High

High leverage

Revenue Growth (YoY)

-95.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-13.3%

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

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹112.95

Operating Margin

-906.1%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.53

Tight

Tight short-term liquidity

Beta (vs Nifty)

1.43

High swing

Swings more than the market in both directions

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

122.8 / 137.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹12 Cr	₹8 Cr	₹6 Cr	-17.5%
EBITDA	₹11 Cr	-₹1 Cr	-₹3 Cr	₹1 Cr	-53.3%
EBITDA Margin	95.6%	-9.7%	-42.5%	17.4%	—
PAT (Net Profit)	-₹3 Cr	-₹17 Cr	-₹21 Cr	-₹24 Cr	—
EPS	₹-0.67	₹-3.64	₹-4.56	₹-5.17	—
ROE	-6.2%	-50.8%	-163.0%	-783.1%	—
ROCE	-2.3%	-18.0%	-33.2%	-47.1%	—
Total Debt	₹25 Cr	₹28 Cr	₹31 Cr	₹21 Cr	-6.2%
Free Cash Flow	-₹4 Cr	-₹9 Cr	-₹2 Cr	₹13 Cr	—

🔴 Revenue has shrunk at 17.5% a year over 3 years.

🔴 EBITDA has shrunk at 53.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 95.6% to 17.4% over 3 years (-78.2 pts).

🔴 ROE has fallen from -6.2% to -783.1% over 3 years (-776.9 pts).

🔴 ROCE has fallen from -2.3% to -47.1% over 3 years (-44.8 pts).

🟢 Total Debt has shrunk at 6.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹115 Cr

Total Liabilities

₹112 Cr

Total Debt

₹21 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹13 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

59.2%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 mixed5 general

Top 6 Semiconductor Stocks In India To Invest In October 2026

Samco, 16 Oct

SPEL Semiconductor Share Price News Near 52-Week Trough

Univest, 13 Oct

SPELS Stock Price and Chart — NSE:SPELS

TradingView, 17 Aug

SPEL Semiconductor Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Spel Semiconductor reports standalone net profit of Rs 0.77 crore in the March 2026 quarter

Business Standard, 20 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Spel Semiconductor approves ₹1,000 crore fund raising

scanx.trade, 20 Jul

Watch Items

Revenue growth is negative (-95.9%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak6.2/20

🟡Financial HealthAdequate9.1/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak3.8/15

🔴ValuationDemanding2.6/15

🔴RiskHigh2.6/10

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

This thesis breaks if

✓EBITDA margin holds above 15%17.4%
✗Debt / EBITDA falls below 3x19.2x
✗Interest cover stays above 3x-3.7x
✓Free cash flow remains positive₹13 Cr
✗ROCE stays above 8%-47.1%