Supershakti Metaliks Limited

Basic Materials — Steel · BSE

₹225.00₹0.00 (0.00%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, 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, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Supershakti Metaliks Limited manufactures and sells iron and steel products to the B2B segment in India and internationally. It offers billets; wire rods under SUPERSHAKTI brand; as well as HB Wire and Binding Wire.

IndustrySteel

SectorBasic Materials

Employees434

Annual revenue₹705 Cr

How does it make money?

Turns over ₹705 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 434 employees supports ₹1.62 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.62 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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 9.9% 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 ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -3% while net margin moved -14% 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-3%

Margin effect-14%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.1% a year
✗ Profit has declined at 6.0% a year

Quality vs. Valuation

Company Quality

37/ 100

Weak

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.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

9.4x

3Y Median

23.2x

40 monthly readings · mean 24.3x · range 15.4x–35.0x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 60% below its 3y median of 23.2x. 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 48% below the peer median of 18.2x.

vs. its own history

Cheap

23.2x median over 40 months · -60%

vs. sector peers

Cheap

18.2x median of 4 peers · -48%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 100% over 3 years.
Very low debt
Debt/Equity of 0.01x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 14.0% to 9.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.9% to 9.9% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 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 -₹8 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 2.1 points over 3 years.

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.
Priced below its own history
The stock trades 60% 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 48% 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?

Margins are being competed away
EBITDA margin has fallen from 7.0% to 5.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 14.0% to 9.3%. 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.
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 3%✓ 5.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 9.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 23.2x✓ 9.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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 · 4 neutral · 2 weak

Market Cap

₹259 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.4x

Cheap

Cheap against the generic band

P/B Ratio

0.87x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹24.01

Profitable

Profitable on a per-share basis

ROE

9.8%

Moderate

Moderate capital efficiency

ROCE

9.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.01x

Low

Conservative leverage

Revenue Growth (YoY)

-3.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

126.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.22%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

1.2%

Weak

Assets generate little profit

Operating Margin

0.6%

Weak

Thin margins leave little room for error

Net Margin

3.9%

Average

Average bottom-line conversion

Current Ratio

3.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

261.0 / 267.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹730 Cr	₹731 Cr	₹737 Cr	₹705 Cr	-1.1%
EBITDA	₹51 Cr	₹23 Cr	₹22 Cr	₹35 Cr	-12.0%
EBITDA Margin	7.0%	3.1%	3.0%	5.0%	—
PAT (Net Profit)	₹33 Cr	₹13 Cr	₹13 Cr	₹28 Cr	-6.0%
EPS	₹28.89	₹11.63	₹11.19	—	—
ROE	14.0%	5.4%	4.8%	9.3%	—
ROCE	17.9%	6.9%	6.3%	9.9%	—
Total Debt	₹19 Cr	₹20 Cr	₹19 Cr	₹0 Cr	-88.1%
Free Cash Flow	₹54 Cr	₹1 Cr	₹46 Cr	-₹8 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.1% a year).

🔴 EBITDA has shrunk at 12.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.0% to 5.0% over 3 years (-2.1 pts).

🔴 PAT (Net Profit) has shrunk at 6.0% a year over 3 years.

🔴 ROE has fallen from 14.0% to 9.3% over 3 years (-4.7 pts).

🔴 ROCE has fallen from 17.9% to 9.9% over 3 years (-8.1 pts).

🟢 Total Debt has shrunk at 88.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹54 Cr to -₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹340 Cr

Total Liabilities

₹42 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.4%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

28 Aug 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 positive5 general

Supershakti Metaliks Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Compare with

Equitymaster, 07 Oct

Supershakti Metaliks Limited Confirms Non-Classification as Large Corporate Under SEBI Framework for FY2025-26

scanx.trade, 02 Apr

Supershakti Metaliks Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

Dividend alert! Last day to buy Paras Defence, MCX, 34 other stocks for payouts. Do you own any?

The Economic Times, 27 AugCapital return

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

Supershakti Metaliks Limited Share Price

Upstox, 18 Aug

Watch Items

Revenue growth is negative (-3.4%) 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.
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

StrongFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑