Super Iron Foundry Limited

Industrials — Metal Fabrication · BSE

₹33.95−₹2.35 (−6.47%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Reasonable but unspectacular business quality, 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, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Super Iron Foundry Limited, together with its subsidiaries, manufactures and sells iron and steel castings for water pipe networks, railways, counterweights, and agriculture industries in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees130

Annual revenue₹256 Cr

How does it make money?

Turns over ₹256 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 130 employees supports ₹1.97 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.97 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 11.9% 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.

Peer median ROE18.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +105% while net margin moved +533% 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+105%

Margin effect+533%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 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

4.8x

2Y Median

9.8x

21 monthly readings · mean 13.0x · range 5.6x–44.8x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 51% below its 2y median of 9.8x. 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 61% below the peer median of 12.2x.

vs. its own history

Cheap

9.8x median over 21 months · -51%

vs. sector peers

Cheap

12.2x median of 4 peers · -61%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.3x

PEG

0.04

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 9.8% to 14.2% over 3 years.
Return on equity is rising
ROE has improved from 2.4% to 8.7%.
Return on capital is rising
ROCE has improved from 9.8% to 11.9%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹36 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.8% to 14.2%. 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 51% 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 61% 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?

The debt load needs earnings to hold up
Debt is 3.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 20% a year✓ 27.1% CAGR
Latest reported year was 25.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹36 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 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

5 good · 5 neutral · 1 weak

Market Cap

₹79 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.8x

Cheap

Cheap against the generic band

P/B Ratio

0.42x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.12

Profitable

Profitable on a per-share basis

ROE

9.1%

Moderate

Moderate capital efficiency

ROCE

11.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.64x

Moderate

Moderate leverage

Revenue Growth (YoY)

25.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

402.3%

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

-₹50 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

4.3%

Average

Average asset productivity

Operating Margin

11.4%

Average

Average margins

Net Margin

6.5%

Average

Average bottom-line conversion

Current Ratio

1.51

Comfortable

Healthy short-term liquidity

52W Range Position

36%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

36.6 / 37.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹125 Cr	₹155 Cr	₹159 Cr	₹256 Cr	+27.1%
EBITDA	₹12 Cr	₹16 Cr	₹22 Cr	₹36 Cr	+43.8%
EBITDA Margin	9.8%	10.4%	13.8%	14.2%	—
PAT (Net Profit)	₹1 Cr	₹4 Cr	₹11 Cr	₹17 Cr	+135.0%
EPS	₹0.55	₹1.68	₹4.6	—	—
ROE	2.4%	6.9%	6.2%	8.7%	—
ROCE	9.8%	14.4%	12.0%	11.9%	—
Total Debt	₹120 Cr	₹119 Cr	₹97 Cr	₹122 Cr	+0.4%
Free Cash Flow	-₹0 Cr	₹8 Cr	-₹28 Cr	-₹36 Cr	—

🟢 Revenue has grown at 27.1% a year over 3 years.

🟢 EBITDA has grown at 43.8% a year over 3 years.

🟢 EBITDA Margin has risen from 9.8% to 14.2% over 3 years (+4.4 pts).

🟢 PAT (Net Profit) has grown at 135.0% a year over 3 years.

🟢 ROE has risen from 2.4% to 8.7% over 3 years (+6.3 pts).

🟢 ROCE has risen from 9.8% to 11.9% over 3 years (+2.1 pts).

🟡 Total Debt has been broadly flat over 3 years (0.4% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹404 Cr

Total Liabilities

₹213 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹25 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.2%

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

6 general

Super Iron Foundry schedules Sept 30 AGM, urges KYC update

scanx.trade, 30 Sept

Super Iron Foundry Limited Share Price

Upstox, 05 May

Super Iron Foundry Ltd Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 29 Aug

Super Iron Foundry IPO Day 1: BSE SME IPO booked 36%, check issue size, price band & more

Upstox, 16 Feb

JINDAL SUPREME (INDIA) LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 24 Sept

Super Iron Foundry IPO GMP: Lot Size, Issue Size, Financials & Timeline

Equitypandit, 07 Mar

Watch Items

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

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Profitability

WeakRisk

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑