Susan Electricals India Limited

Industrials — Electrical Equipment & Parts · BSE

₹261.55−₹13.75 (−4.99%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, 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. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Susan Electricals India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Susan Electricals India Limited manufactures and sells wires and cables in India. The company offers aluminum wires and strips, conductors, aerial bunched cables, HT and other cables, medium voltage copper conductor (MVCC) cables, and DPC double paper covered wires.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees216

Annual revenue₹266 Cr

How does it make money?

Turns over ₹266 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 216 employees supports ₹1.23 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin11.8%

Net margin6.9%

Revenue / employee₹1.23 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 74.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 47.4% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE74.6%

ROE47.4%

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +250% while net margin moved +1199% 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+250%

Margin effect+1199%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

69/ 100

Good

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

Valuation

66/ 100

Fair

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

20.0x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 78% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -78%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

20.0x

P/B

10.60x

EV/EBITDA

19.0x

PEG

0.08

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 2.3% to 11.8% over 3 years.
Return on equity is rising
ROE has improved from 12.2% to 47.4%.
Return on capital is rising
ROCE has improved from 42.5% to 74.6%.
High return on capital employed
ROCE of 74.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 353% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Inventory building faster than sales
Inventory is up 1591% against revenue growth of 250% — stock may not be moving.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 353% over 3 years, from ₹15 Cr to ₹67 Cr.
🔴High leverageFinancial
Debt/Equity of 1.73x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 1591% against revenue up 250% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 74.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 2.3% to 11.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 78% 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?

Leverage amplifies any setback
Debt/Equity of 1.73x. Interest is payable whether or not the business has a good year.
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

1Revenue growth stays above 39% a year✓ 51.8% CAGR
Latest reported year was 279.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 72%✓ 74.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 3 neutral · 3 weak

Market Cap

₹532 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.0x

Fair

Fairly valued against the generic band

P/B Ratio

10.60x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹13.11

Profitable

Profitable on a per-share basis

ROE

47.4%

Strong

Strong capital efficiency

ROCE

74.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.73x

High

High leverage

Revenue Growth (YoY)

279.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

222.9%

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

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹261.55

Operating Margin

11.4%

Average

Average margins

Net Margin

7.4%

Average

Average bottom-line conversion

Current Ratio

1.22

Comfortable

Healthy short-term liquidity

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

295.5 / 298.5

Bearish alignment (short < long)

RSI (14)

31.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹76 Cr	₹101 Cr	₹133 Cr	₹266 Cr	+51.8%
EBITDA	₹2 Cr	₹3 Cr	₹12 Cr	₹31 Cr	+163.6%
EBITDA Margin	2.3%	3.2%	8.8%	11.8%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹6 Cr	₹18 Cr	+256.8%
EPS	₹0.2	₹0.37	₹2.78	₹8.97	+256.8%
ROE	12.2%	12.2%	31.4%	47.4%	—
ROCE	42.5%	31.5%	56.8%	74.6%	—
Total Debt	₹15 Cr	₹25 Cr	₹45 Cr	₹67 Cr	+65.5%
Free Cash Flow	-₹2 Cr	-₹10 Cr	-₹20 Cr	-₹14 Cr	—

🟢 Revenue has grown at 51.8% a year over 3 years.

🟢 EBITDA has grown at 163.6% a year over 3 years.

🟢 EBITDA Margin has risen from 2.3% to 11.8% over 3 years (+9.6 pts).

🟢 PAT (Net Profit) has grown at 256.8% a year over 3 years.

🟢 EPS has grown at 256.8% a year over 3 years.

🟢 ROE has risen from 12.2% to 47.4% over 3 years (+35.2 pts).

🟢 ROCE has risen from 42.5% to 74.6% over 3 years (+32.1 pts).

🔴 Total Debt has grown at 65.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹130 Cr

Total Liabilities

₹92 Cr

Total Debt

₹67 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.3%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

6 general

Susan Electricals India Lower Circuit Today: Price, Data and Peers

Univest, 16 Oct

Susan Electricals India Limited (SUSAN.BO) valuation measures and financial statistics

Yahoo Finance UK, 15 Oct

Susan Electricals India IPO Allotment Status: Check Allotment Status and Key Issue Details

Groww, 15 Jun

Susan Electricals India Ltd. IPO

The Economic Times, 07 Oct

Susan Electricals shares to list today. Check GMP ahead of debut

The Economic Times, 18 Jun

Susan Electricals India IPO Review GMP Price Band Dates and Analysis

IndiaIPO, 01 Jun

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🔴Financial HealthStretched8.9/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong11.8/15

🟡ValuationFair6.8/15

🔴RiskHigh2.5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 39% a year51.8% CAGR
✓EBITDA margin holds above 10%11.8%
✗Debt / EBITDA stays below 2x2.1x
✗Free cash flow remains positive-₹14 Cr
✓ROCE stays above 72%74.6%