Sulabh Engineers & Services Limited

Financial Services — Credit Services · BSE

₹2.64−₹0.09 (−3.30%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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 obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sulabh Engineers & Services Limited, a non-banking financial company, engages in lending and related activities in India.

IndustryCredit Services

SectorFinancial Services

Employees5

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹125 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹71.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹71.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -0% while net margin moved -24% 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-0%

Margin effect-24%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.0% a year
✗ Profit has declined at 8.8% a year

Quality vs. Valuation

Company Quality

59/ 100

Average

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 reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

12.0x

3Y Median

30.4x

40 monthly readings · mean 26.9x · range 9.0x–52.1x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 61% below its 3y median of 30.4x. 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 29% below the peer median of 17.0x.

vs. its own history

Cheap

30.4x median over 40 months · -61%

vs. sector peers

Cheap

17.0x median of 4 peers · -29%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 49.7% to 125.2% over 3 years.
Return on capital is rising
ROCE has improved from 3.9% to 6.5%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Inventory building faster than sales
Inventory is up 286% against revenue growth of -0% — stock may not be moving.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 24% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 49.7% to 125.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 61% 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 29% 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?

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 123%✓ 125.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 5.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 30.4x✓ 12.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

6 good · 3 neutral · 2 weak

Market Cap

₹27 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.0x

Cheap

Cheap against the generic band

P/B Ratio

0.73x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.22

Profitable

Profitable on a per-share basis

ROE

5.6%

Weak

Weak capital efficiency

ROCE

6.5%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

90.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

103.7%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

5.3%

Average

Average asset productivity

Operating Margin

87.2%

Good

Healthy core-business profitability

Net Margin

28.7%

Good

Strong bottom-line conversion

Current Ratio

32.20

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2.5 / 2.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹3 Cr	₹5 Cr	₹4 Cr	-0.0%
EBITDA	₹2 Cr	₹1 Cr	₹2 Cr	₹5 Cr	+36.0%
EBITDA Margin	49.7%	18.7%	36.9%	125.2%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹1 Cr	-8.8%
EPS	₹0.15	₹0.14	₹0.25	₹0.09	-16.9%
ROE	3.6%	4.3%	6.9%	2.4%	—
ROCE	3.9%	3.0%	5.5%	6.5%	—
Total Debt	₹3 Cr	₹1 Cr	₹2 Cr	—	—
Free Cash Flow	₹1 Cr	-₹2 Cr	-₹1 Cr	₹2 Cr	+6.8%

🟡 Revenue has been broadly flat over 3 years (-0.0% a year).

🟢 EBITDA has grown at 36.0% a year over 3 years.

🟢 EBITDA Margin has risen from 49.7% to 125.2% over 3 years (+75.5 pts).

🔴 PAT (Net Profit) has shrunk at 8.8% a year over 3 years.

🔴 EPS has shrunk at 16.9% a year over 3 years.

🔴 ROE has fallen from 3.6% to 2.4% over 3 years (-1.2 pts).

🟢 ROCE has risen from 3.9% to 6.5% over 3 years (+2.5 pts).

🟢 Free Cash Flow has grown at 6.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹47 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.9%

Corporate Actions

Ex-Dividend Date

29 Jun 2010

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

2 positive1 mixed3 general

Sulabh Engineers board approves Q2FY27 standalone and consolidated results

scanx.trade, 14 OctResults

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

Sulabh Engineers & Services Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 07 Oct

Sulabh Engineers & Services Ltd Upgraded to Sell on Technical Improvement Despite Weak Fundamentals

MarketsMojo, 22 SeptAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Anand Rathi Share & Stock Brokers consolidated net profit rises 2.32% in the June 2026 quarter

Business Standard, 15 JulResults

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

Sulabh Engineers adopts amended UPSI leak inquiry policy

scanx.trade, 12 Aug

SULABH ENGINEERS & SERVICES LT Share Price - Live SULABEN Stock Price & Chart

Upstox, 19 Mar

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability · Risk

WeakGrowth

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 of 3 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑