S. V. J. Enterprises Limited

Basic Materials — Paper & Paper Products · BSE

₹188.95+₹8.15 (+4.51%)

DalalBaazaar Score

48 / 100

🟡 Moderate

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: The business is earning a fairly low return on the money invested in it, 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, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

S. V. J. Enterprises Limited operates as a healthy lifestyle company in India. The company is involved in the manufacturing, buying, supplying, importing, exporting and selling like fox nut, disposal, food, and grain products.

IndustryPaper & Paper Products

SectorBasic Materials

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS 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 7.2% 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 ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -18% while net margin moved +28% 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-18%

Margin effect+28%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 6.4% a year
✗ Profit CAGR of only 1.5%

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

32/ 100

Expensive

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

144.2x

3Y Median

159.0x

40 monthly readings · mean 192.3x · range 22.0x–547.4x

Sector Median

28.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 159.0x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 402% above the peer median of 28.7x.

vs. its own history

Fair

159.0x median over 40 months · -9%

vs. sector peers

Expensive

28.7x median of 4 peers · +402%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

78.7x

PEG

95.41

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 22.8% to 29.4% over 3 years.
Debt is being paid down
Total debt is down 27% over 3 years.
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

4 items require attention · 4 high

🔴High leverageFinancial
Debt/Equity of 8.52x — 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.
🔴Receivables growing faster than salesFinancial
Receivables up 49% against revenue up -18% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 105% against revenue up -18% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 22.8% to 29.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 27% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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 8.52x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 49% against revenue up -18%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 402% above the peer median. That premium needs a reason that persists, or it closes.
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 27%✓ 29.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 7.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 5.5x
How much operating profit can fall before interest stops being comfortably covered.

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

3 good · 2 neutral · 6 weak

Market Cap

₹105 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

144.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.37x

Rich

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

EPS (TTM)

₹1.31

Profitable

Profitable on a per-share basis

ROE

4.5%

Weak

Weak capital efficiency

ROCE

7.2%

Weak

Low return on total capital employed

Debt/Equity

8.52x

High

High leverage

Revenue Growth (YoY)

80.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

243.2%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

3.1%

Average

Average asset productivity

Operating Margin

22.3%

Good

Healthy core-business profitability

Net Margin

15.8%

Good

Strong bottom-line conversion

Current Ratio

8.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.23

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

175.9 / 189.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

60.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹6 Cr	₹5 Cr	₹5 Cr	-6.4%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+1.8%
EBITDA Margin	22.8%	21.6%	24.5%	29.4%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+1.5%
EPS	₹1.25	₹1.32	₹0.96	—	—
ROE	4.8%	4.8%	3.4%	4.4%	—
ROCE	7.1%	6.9%	6.9%	7.2%	—
Total Debt	₹2 Cr	₹2 Cr	₹5 Cr	₹1 Cr	-10.1%
Free Cash Flow	-₹7 Cr	-₹2 Cr	-₹1 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 6.4% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.8% a year).

🟢 EBITDA Margin has risen from 22.8% to 29.4% over 3 years (+6.6 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.5% a year).

🟡 ROE has held roughly flat at 4.4% over 3 years.

🟡 ROCE has held roughly flat at 7.2% over 3 years.

🟢 Total Debt has shrunk at 10.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹19 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.2%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

6 general

S.V.J. Enterprises Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 28 Sept

S.V.J. Enterprises Ltd. Lower Circuit Streak: Day 2 Price and Data

Univest, 29 Sept

S. V. J. Enterprises Ltd

Equitypandit, 09 Mar

SVJ Stock Price and Chart — BSE:SVJ

TradingView, 10 Apr

S.V.J. Enterprises passes all 3 AGM resolutions with 100% votes

scanx.trade, 29 Sept

NEAGI Stock Price and Chart — NSE:NEAGI

TradingView, 21 Apr

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality

MiddlingFinancial Health · Profitability · Risk

WeakGrowth · Valuation

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. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑