MoneyWorks4Me

Check Before You Invest : Standard Engineering Technology Ltd

BSE: 544333 NSE: SETL ISIN: INE0M4D01010
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Standard Engineering Technology Ltd belong to?
Standard Engineering Technology Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Standard Engineering Technology Ltd a good quality company?
Standard Engineering Technology 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 Standard Engineering Technology Ltd undervalued or overvalued?
Standard Engineering Technology 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 5-year
Historic Median
Price to Earnings 170.33 109.23
Price to Book 11.1 4.66
Price to Sales 24.82 14.71
EV to EBITDA 110.21 64.91
Q.4 Is Standard Engineering Technology Ltd a good buy now?
Standard Engineering Technology Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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.

Q.1 Gross Profit margin of Standard Engineering Technology Ltd?
Standard Engineering Technology Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.8% for FY-2026, which is above its 5-year median of 18.8%, indicating increasing margins.

Q.2 Operating Profit Margin of Standard Engineering Technology Ltd?
Standard Engineering Technology Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.58% for FY-2026, which is below its 5-year median of 15.34% indicating decreasing margins.

Q.3 Net Profit Margin of Standard Engineering Technology Ltd?
Standard Engineering Technology Ltd Net Profit Margin is 15.88% for FY-2026, is above its 5-year median of 12.59%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 22.8 18.8
Operating Profit Margin (%) 12.58 15.34
Net Profit Margin (%) 15.88 12.59

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Standard Engineering Technology Ltd?
Standard Engineering Technology Ltd Return on Asset is 5.38%, which is below its 5-year historical median of 8.09%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Standard Engineering Technology Ltd?
Standard Engineering Technology Ltd Return on capital employed is 8.82% for FY-2026, which is below its 5-year historical median of 15.01%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of Standard Engineering Technology Ltd?
Standard Engineering Technology Ltd Return on equity is 6.66% for FY-2026, which is below its 5-year historical median of 11.78%, indicating the business is making worse use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Standard Engineering Technology Ltd?
Standard Engineering Technology Ltd Debt-to-Equity ratio is 0.04, which is lower the industry average of 0.18, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Standard Engineering Technology Ltd?
Standard Engineering Technology Ltd Debt to cash flow from operations is 1.4, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Standard Engineering Technology Ltd?

Q.1 Promoter shareholding and pledge status of Standard Engineering Technology Ltd?
Promoters hold 60.47% of the Standard Engineering Technology Ltd, with 21.38% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Standard Engineering Technology Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Standard Engineering Technology Ltd vs industry peers?
Standard Engineering Technology Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 5.77%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 5.8
Gross Profit Growth (%) 37.2 22.1
Operating Profit Growth (%) 10 21.1
Net Profit Growth (%) 41.4 27.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.34 0.89
ROE (%) 6.66 13.1
ROCE (%) 8.82 15.89
Cash Conversion Cycle (days) 176.27 97

Valuation & price assessment

Q.1 Stock return of Standard Engineering Technology Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 112.15% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 112.2%
Q.2 Valuation ratios of Standard Engineering Technology Ltd vs historical?
The current P/E ratio of 170.33 is higher than its historical median of 109.23, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 170.33 109.23 29.36
Price to Book 11.1 4.66 2.91
Price to Sales 24.82 14.71 2.93
EV to EBITDA 110.21 64.91 15.77

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