Swastik Pipe Limited

Sector n/a · NSE

₹67.65+₹0.65 (+0.97%)

DalalBaazaar Score

29 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

High

Driven by moderate debt load, 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, 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, 6:06 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

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

How does it make money?

Turns over ₹385 Cr a year. Of every ₹100 of sales, about ₹-15 reaches shareholders as profit, with ₹-17 left at the operating level before interest, tax and depreciation.

EBITDA margin-16.6%

Net margin-15.0%

What is its competitive advantage?Little sign of one

Returns on capital of -38.4% 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.

ROCE-38.4%

ROE-38.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -45% while net margin moved -1261% 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-45%

Margin effect-1261%

DalalBaazaar Score

29/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 43.1 points over the period

Quality vs. Valuation

Company Quality

26/ 100

Weak

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

Valuation

—/ 100

Unknown

What you are being asked to pay, ignoring how good the business is.

Not enough data to separate business quality from valuation for this company.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 4.2% to -16.6% over 3 years.
Debt is rising
Total debt is up 37% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 4.4% to -38.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 9.9% to -38.4% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 3 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -3.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹58 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 20.7 points, from 4.2% to -16.6%.
🟡Debt is increasingFinancial
Total debt is up 37% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.5x to -3.6x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹29 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 4.2% to -16.6%. 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 4.4% to -38.7%. 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.
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
3 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 -19%✓ -16.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹29 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -3.6x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -38.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

1 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

0 good · 6 neutral · 5 weak

Market Cap

₹157 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

-38.7%

Weak

Weak capital efficiency

ROCE

-38.4%

Weak

Low return on total capital employed

Debt/Equity

1.02x

Moderate

Moderate leverage

Revenue Growth (YoY)

-46.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-697.5%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹29 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹67.65

Gross Margin

1.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

-15.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.19

Adequate

Adequate, but no real cushion

Technical Snapshot

SMA 20 / SMA 50

17.8 / 18.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹704 Cr	₹717 Cr	₹712 Cr	₹385 Cr	-18.2%
EBITDA	₹29 Cr	₹28 Cr	₹16 Cr	-₹64 Cr	—
EBITDA Margin	4.2%	3.9%	2.2%	-16.6%	—
PAT (Net Profit)	₹9 Cr	₹5 Cr	-₹7 Cr	-₹58 Cr	—
EPS	₹4.53	₹2.21	—	—	—
ROE	4.4%	2.4%	-3.5%	-38.7%	—
ROCE	9.9%	8.8%	4.3%	-38.4%	—
Total Debt	₹111 Cr	₹113 Cr	₹126 Cr	₹152 Cr	+11.1%
Free Cash Flow	-₹32 Cr	₹10 Cr	₹12 Cr	-₹29 Cr	—

🔴 Revenue has shrunk at 18.2% a year over 3 years.

🔴 EBITDA has turned negative, from ₹29 Cr to -₹64 Cr.

🔴 EBITDA Margin has fallen from 4.2% to -16.6% over 3 years (-20.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹9 Cr to -₹58 Cr.

🔴 ROE has fallen from 4.4% to -38.7% over 3 years (-43.1 pts).

🔴 ROCE has fallen from 9.9% to -38.4% over 3 years (-48.3 pts).

🔴 Total Debt has grown at 11.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹346 Cr

Total Liabilities

₹197 Cr

Total Debt

₹152 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹21 Cr

Capex

-₹8 Cr

Recent News

6 general

SBI Orders 6-Year Forensic Audit for Swastik Pipe Following ₹140 Crore NPA Classification

Sahi, 07 Jul

Swastik Pipe Limited: Independent Director Sh. Vishal Dugar Resigns Effective May 12, 2026

scanx.trade, 12 May

Swastik Pipe IPO: Price band fixed at ₹97-100, issue opens on 29th September

Livemint, 26 Sept

Swastik Pipe prices IPO at up to Rs 100 per share, offer opens on September 29

Moneycontrol.com, 26 Sept

BEHARI LAL ENGINEERING LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 20 Aug

GG Engineering alleged stock price manipulation: Sebi probes promoters of two listed firms

The Economic Times, 20 Mar

Watch Items

Revenue growth is negative (-46.0%) 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.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🔴Financial HealthStretched7/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.5/15

🔴RiskHigh2.5/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -19%-16.6%
✗Free cash flow remains positive-₹29 Cr
✗Interest cover stays above 3x-3.6x
✗ROCE stays above 8%-38.4%