Sprayking Limited

Industrials — Metal Fabrication · BSE

₹1.18+₹0.01 (+0.85%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Sprayking Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sprayking Limited manufactures and trades in brass products in India.

IndustryMetal Fabrication

SectorIndustrials

Employees30

Annual revenue₹129 Cr

How does it make money?

Turns over ₹129 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 30 employees supports ₹4.31 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.5%

Net margin1.5%

Revenue / employee₹4.31 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?Little sign of one

Returns on capital of 8.2% 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.

ROCE8.2%

ROE3.3%

Peer median ROE18.7%

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 +568% while net margin moved -83% 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+568%

Margin effect-83%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.3% is weak
✗ ROE has fallen by 3.6 points over the period

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

43/ 100

Expensive

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

19.7x

3Y Median

4.2x

40 monthly readings · mean 31.9x · range 0.2x–121.0x

Sector Median

12.2x

median of 4 sector peers

⚠️Current valuation is approximately 368% above its 3y median of 4.2x. 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 62% above the peer median of 12.2x.

vs. its own history

Expensive

4.2x median over 40 months · +368%

vs. sector peers

Expensive

12.2x median of 4 peers · +62%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

19.7x

P/B

0.43x

EV/EBITDA

4.5x

PEG

5.12

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.30x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 13.1% to 8.5% over 3 years.
Debt is rising
Total debt is up 1771% over 3 years — worth checking what it funded.
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 6.9% to 3.3% — each rupee of shareholder capital earns less than it did.
Inventory building faster than sales
Inventory is up 1126% against revenue growth of 568% — stock may not be moving.
Valuation above its historical average
At 19.7x the stock trades 368% above its own median of 4.2x.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1771% over 3 years, from ₹1 Cr to ₹24 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 1126% against revenue up 568% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 5.9x to 2.6x.
🟡Margins are compressingFinancial
EBITDA margin is down 4.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 13.1% to 8.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 368% 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 6.9% to 3.3%. 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

1Revenue growth stays above 66% a year✓ 88.4% CAGR
Latest reported year was -24.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹25 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.7x

Fair

Fairly valued against the generic band

P/B Ratio

0.43x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.06

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

8.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

-24.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-73.8%

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

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1.18

Operating Margin

3.4%

Weak

Thin margins leave little room for error

Net Margin

1.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.13

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.28

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1.2 / 1.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹19 Cr	₹102 Cr	₹130 Cr	₹129 Cr	+88.4%
EBITDA	₹3 Cr	₹15 Cr	₹14 Cr	₹11 Cr	+62.8%
EBITDA Margin	13.1%	15.2%	10.5%	8.5%	—
PAT (Net Profit)	₹2 Cr	₹9 Cr	₹7 Cr	₹2 Cr	+3.8%
EPS	₹0.1	₹0.85	₹6.03	₹0.9	+106.0%
ROE	6.9%	30.2%	22.9%	3.3%	—
ROCE	9.8%	34.7%	25.4%	8.2%	—
Total Debt	₹1 Cr	₹34 Cr	₹47 Cr	₹24 Cr	+165.5%
Free Cash Flow	-₹3 Cr	-₹27 Cr	-₹22 Cr	-₹14 Cr	—

🟢 Revenue has grown at 88.4% a year over 3 years.

🟢 EBITDA has grown at 62.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.1% to 8.5% over 3 years (-4.7 pts).

🟢 PAT (Net Profit) has grown at 3.8% a year over 3 years.

🟢 EPS has grown at 106.0% a year over 3 years.

🔴 ROE has fallen from 6.9% to 3.3% over 3 years (-3.6 pts).

🔴 ROCE has fallen from 9.8% to 8.2% over 3 years (-1.5 pts).

🔴 Total Debt has grown at 165.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹119 Cr

Total Liabilities

₹38 Cr

Total Debt

₹24 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.4%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

1 positive1 mixed4 general

Sprayking Ltd submits scrutinizer report for 22nd AGM voting results

scanx.trade, 05 OctResults

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

Compare Honeywell Automation with

Equitymaster, 13 Oct

Sprayking Announces 1:2 Stock Split & ₹50 Cr Rights Issue

HDFC Sky, 10 JunCapital return

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

Sprayking Ltd

Equitypandit, 09 Mar

Akshar Spintex Ltd leads losers in 'B' group

Business Standard, 09 Apr

Multibagger stock Sprayking soared 3092% in 4 years, jumped from ₹1.5 to ₹50.7

Livemint, 03 May

Watch Items

Revenue growth is negative (-24.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate11.8/20

🟡GrowthModest10/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair8.7/15

🔴RiskHigh4/10

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

This thesis breaks if

✓Revenue growth stays above 66% a year88.4% CAGR
✓EBITDA margin holds above 6%8.5%
✗Debt / EBITDA stays below 2x2.2x
✗Free cash flow remains positive-₹14 Cr
✗Interest cover stays above 3x2.6x