Check Before You Invest : Safety Controls & Devices Ltd

Q: Which industry/sub-sector does Safety Controls & Devices Ltd belong to?

Safety Controls & Devices Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q: Is Safety Controls & Devices Ltd a good quality company?

Safety Controls & Devices Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Safety Controls & Devices Ltd undervalued or overvalued?

Safety Controls & Devices Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 21.19, Historic Median: 17.87. Price to Book, Current: 2.03, Historic Median: 1.75. Price to Sales, Current: 1.86, Historic Median: 1.57. EV to EBITDA, Current: 12.32, Historic Median: 10.67

Q: Is Safety Controls & Devices Ltd a good buy now?

Safety Controls & Devices Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd revenue growth is 129.4% for FY-2025, which is above its 3-year CAGR of 30.56%, indicating faster growth.

Q: Gross Profit margin of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is in line with its 3-year median of 11.9%, indicating stable margins.

Q: Operating Profit Margin of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.84% for FY-2025, which is in line with its 3-year median of 16.84% indicating stable margins.

Q: Net Profit Margin of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Net Profit Margin is 8.77% for FY-2025, is in line with its 3-year median of 8.77%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.9, Historic Median: 11.9. Operating Profit Margin (%), Current: 16.84, Historic Median: 16.84. Net Profit Margin (%), Current: 8.77, Historic Median: 8.77

Q: Return on Asset of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Return on Asset is 9.21%, which is above its 3-year historical median of 5.67%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Return on capital employed is 29.04% for FY-2025, which is above its 3-year historical median of 23.28%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Safety Controls & Devices Ltd

Snapshot

Q.1 Which industry/sub-sector does Safety Controls & Devices Ltd belong to?

Safety Controls & Devices Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Safety Controls & Devices Ltd a good quality company?

Safety Controls & Devices Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Safety Controls & Devices Ltd undervalued or overvalued?

Safety Controls & Devices Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	3-year Historic Median
Price to Earnings	21.19	17.87
Price to Book	2.03	1.75
Price to Sales	1.86	1.57
EV to EBITDA	12.32	10.67

Q.4 Is Safety Controls & Devices Ltd a good buy now?

Safety Controls & Devices Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd revenue growth is 129.4% for FY-2025, which is above its 3-year CAGR of 30.56%, indicating faster growth.

Q.2 Gross Profit margin of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is in line with its 3-year median of 11.9%, indicating stable margins.

Q.3 Operating Profit Margin of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.84% for FY-2025, which is in line with its 3-year median of 16.84% indicating stable margins.

Q.4 Net Profit Margin of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Net Profit Margin is 8.77% for FY-2025, is in line with its 3-year median of 8.77%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	11.9	11.9
Operating Profit Margin (%)	16.84	16.84
Net Profit Margin (%)	8.77	8.77

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Return on Asset is 9.21%, which is above its 3-year historical median of 5.67%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Return on capital employed is 29.04% for FY-2025, which is above its 3-year historical median of 23.28%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Return on equity is 30.14% for FY-2025, which is above its 3-year historical median of 26.76%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Cash conversion cycle is 201 days, in line with its 3-year historical median of 194 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	1.05	0.84
ROE (%)	30.14	26.76
ROCE (%)	29.04	23.28
Cash Conversion Cycle	201 days	194 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Debt-to-Equity ratio is 0.80, which is above the industry average of 0.38, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Safety Controls & Devices Ltd?

Safety Controls & Devices Ltd Debt to cash flow from operations is -4.56, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Safety Controls & Devices Ltd?

Q.1 Promoter shareholding and pledge status of Safety Controls & Devices Ltd?

Promoters hold % of the Safety Controls & Devices Ltd, with % of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Safety Controls & Devices Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Safety Controls & Devices Ltd vs industry peers?

Safety Controls & Devices Ltd revenue CAGR is 30.56%, compared to the industry median CAGR of 15.97%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	129.4	16
Gross Profit Growth (%)	100	40.5
Operating Profit Growth (%)	112.5	34.4
Net Profit Growth (%)	125	54.4

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.05	0.83
ROE (%)	30.14	11.59
ROCE (%)	29.04	14.23
Cash Conversion Cycle (days)	201.05	53

Valuation & price assessment

Q.1 Stock return of Safety Controls & Devices Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.2 Valuation ratios of Safety Controls & Devices Ltd vs historical?

The current P/E ratio of 21.19 is higher than its historical median of 17.87, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	21.19	17.87	22.41
Price to Book	2.03	1.75	1.92
Price to Sales	1.86	1.57	1.65
EV to EBITDA	12.32	10.67	12.04

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Check Before You Invest : Safety Controls & Devices Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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