Starlog Enterprises Limited

Industrials — Rental & Leasing Services · BSE

₹36.11−₹0.40 (−1.10%)

DalalBaazaar Score

31 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 6:02 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 Starlog Enterprises Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Starlog Enterprises Limited operates port and infrastructure facilities in India. The company also engages in the charter hire and operation of heavy-duty cranes; and engineering and erection activities.

IndustryRental & Leasing Services

SectorIndustrials

Employees39

Annual revenue₹10 Cr

How does it make money?

Turns over ₹10 Cr a year. Of every ₹100 of sales, about ₹-130 reaches shareholders as profit, with ₹-68 left at the operating level before interest, tax and depreciation. Each of its 39 employees supports ₹25.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-68.4%

Net margin-129.9%

Revenue / employee₹25.3 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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of -12.9% 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-12.9%

ROE-20.4%

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 -79% while net margin moved -171% 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-79%

Margin effect-171%

DalalBaazaar Score

31/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

26/ 100

Weak

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

Valuation

36/ 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

0.86x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 100% over 3 years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 12.2% to -68.4% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 59.3% to -12.9% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -17.9x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹13 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 80.7 points, from 12.2% to -68.4%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 41.2x to -17.9x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 25% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 100% 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 12.2% to -68.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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.
Several serious flags at once
4 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

1EBITDA margin holds above -70%✓ -68.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹16 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -17.9x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -12.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

2 good · 2 neutral · 7 weak

Market Cap

₹54 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

0.86x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-7.81

Loss-making

Negative earnings per share — the business is losing money

ROE

-20.4%

Weak

Weak capital efficiency

ROCE

-12.9%

Weak

Low return on total capital employed

Debt/Equity

0.51x

Low

Conservative leverage

Revenue Growth (YoY)

-6.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-149.0%

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

-₹16 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹36.11

Operating Margin

-27.0%

Weak

Thin margins leave little room for error

Net Margin

-120.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.03

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

38.1 / 38.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹47 Cr	₹12 Cr	₹14 Cr	₹10 Cr	-40.5%
EBITDA	₹6 Cr	₹7 Cr	₹4 Cr	-₹7 Cr	—
EBITDA Margin	12.2%	55.1%	28.9%	-68.4%	—
PAT (Net Profit)	₹86 Cr	-₹2 Cr	₹26 Cr	-₹13 Cr	—
EPS	₹72.05	₹-1.97	₹21.86	₹-8.57	—
ROE	—	-6.8%	43.2%	-20.4%	—
ROCE	59.3%	5.5%	28.6%	-12.9%	—
Total Debt	₹182 Cr	₹12 Cr	₹0 Cr	₹0 Cr	-87.6%
Free Cash Flow	-₹37 Cr	-₹5 Cr	-₹35 Cr	-₹16 Cr	—

🔴 Revenue has shrunk at 40.5% a year over 3 years.

🔴 EBITDA has turned negative, from ₹6 Cr to -₹7 Cr.

🔴 EBITDA Margin has fallen from 12.2% to -68.4% over 3 years (-80.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹86 Cr to -₹13 Cr.

🔴 EPS has turned negative, from ₹72.05 to ₹-8.57.

🔴 ROE has fallen from -6.8% to -20.4% over 3 years (-13.6 pts).

🔴 ROCE has fallen from 59.3% to -12.9% over 3 years (-72.2 pts).

🟢 Total Debt has shrunk at 87.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹118 Cr

Total Liabilities

₹50 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.7%

Corporate Actions

Ex-Dividend Date

23 Nov 2011

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 positive2 negative3 general

Compare with ABG INFRALOG.

Equitymaster, 16 Oct

Starlog Enterprises Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Starlog Enterprises Limited Reports Q3FY26 Net Loss of ₹145.36 Lakhs Amid Revenue Decline

scanx.trade, 28 JanResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Avalon Technologies consolidated net profit rises 145.39% in the June 2026 quarter

Business Standard, 05 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Starlog Enterprises Balance Sheets, Financial Statements

The Economic Times, 13 Apr

AXISCADES Technologies consolidated net profit declines 98.60% in the March 2026 quarter

Business Standard, 28 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-6.4%) 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 QualityWeak4.7/20

🟡Financial HealthAdequate11.2/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak1.3/15

🟡ValuationFair7.1/15

🔴RiskHigh4/10

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 -70%-68.4%
✗Free cash flow remains positive-₹16 Cr
✗Interest cover stays above 3x-17.9x
✗ROCE stays above 8%-12.9%