Srigee DLM Limited

Consumer Defensive — Household & Personal Products · BSE

₹75.95+₹0.30 (+0.40%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Srigee DLM Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Srigee DLM Limited manufactures and sells plastic molding goods, plastic granules, and assembly of mobile parts in India.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees56

Annual revenue₹72 Cr

How does it make money?

Turns over ₹72 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 56 employees supports ₹1.29 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin9.1%

Net margin9.5%

Revenue / employee₹1.29 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

ITC LTDP/E 16.6x · ROE 27.4%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Some evidence

ROCE of 16.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE16.7%

ROE22.4%

Peer median ROE27.4%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +53% while net margin moved +59% 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+53%

Margin effect+59%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

88/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

6.6x

2Y Median

10.2x

19 monthly readings · mean 17.8x · range 7.4x–55.4x

Sector Median

38.6x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 2y median of 10.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 83% below the peer median of 38.6x.

vs. its own history

Cheap

10.2x median over 19 months · -35%

vs. sector peers

Cheap

38.6x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

6.6x

P/B

1.08x

EV/EBITDA

6.7x

PEG

0.19

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Valuation below its historical average
At 6.6x the stock trades 35% below its own median of 10.2x.
Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Debt is rising
Total debt is up 229% 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 26.5% to 16.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 35.2% to 16.7% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 226% against revenue growth of 53% — stock may not be moving.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 229% over 3 years, from ₹3 Cr to ₹8 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 226% against revenue up 53% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹11 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 35% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 83% 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?

Returns on shareholder capital are falling
ROE has dropped from 26.5% to 16.4%. 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.
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 11% a year✓ 15.3% CAGR
Latest reported year was 52.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

8 good · 2 neutral · 1 weak

Market Cap

₹45 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.6x

Cheap

Cheap against the generic band

P/B Ratio

1.08x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹11.5

Profitable

Profitable on a per-share basis

ROE

22.4%

Strong

Strong capital efficiency

ROCE

16.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

52.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

59.3%

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

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹75.95

ROA

6.4%

Average

Average asset productivity

Operating Margin

5.7%

Average

Average margins

Net Margin

9.5%

Average

Average bottom-line conversion

Current Ratio

2.70

Comfortable

Healthy short-term liquidity

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

75.7 / 79.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹47 Cr	₹54 Cr	₹71 Cr	₹72 Cr	+15.3%
EBITDA	₹5 Cr	₹5 Cr	₹7 Cr	₹7 Cr	+12.2%
EBITDA Margin	9.9%	8.9%	10.5%	9.1%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹5 Cr	₹7 Cr	+34.7%
EPS	₹4.71	₹4.89	₹8.38	—	—
ROE	26.5%	20.2%	25.7%	16.4%	—
ROCE	35.2%	28.4%	31.0%	16.7%	—
Total Debt	₹3 Cr	₹2 Cr	₹4 Cr	₹8 Cr	+48.7%
Free Cash Flow	₹2 Cr	₹0 Cr	-₹2 Cr	-₹11 Cr	—

🟢 Revenue has grown at 15.3% a year over 3 years.

🟢 EBITDA has grown at 12.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.1% over 3 years.

🟢 PAT (Net Profit) has grown at 34.7% a year over 3 years.

🔴 ROE has fallen from 26.5% to 16.4% over 3 years (-10.1 pts).

🔴 ROCE has fallen from 35.2% to 16.7% over 3 years (-18.6 pts).

🔴 Total Debt has grown at 48.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹63 Cr

Total Liabilities

₹21 Cr

Total Debt

₹8 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.8%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

6 general

Srigee DLM sells property to promoter group for ₹2.53 crore

scanx.trade, 09 Jul

SRIGEE DLM LIMITED Share Price - Live SRIGEE Stock Price & Chart

Upstox, 05 May

Srigee DLM AGM Sept 30 to approve ₹424 lakh IPO fund shift

scanx.trade, 07 Sept

Srigee DLM Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Srigee DLM makes strong market debut, shares list at 90% premium over IPO price on BSE SME

Moneycontrol.com, 12 May

Srigee DLM to host virtual investor meet on September 9

scanx.trade, 31 Aug

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟢Financial HealthStrong13/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate9.3/15

🟢ValuationAttractive13.2/15

🔴RiskHigh2.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 11% a year15.3% CAGR
✓EBITDA margin holds above 7%9.1%
✗Free cash flow remains positive-₹11 Cr
✓Debt / EBITDA stays below 2x1.3x
✓ROCE stays above 14%16.7%