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Check Before You Invest : Sahyadri Industries Ltd

BSE: 532841 NSE: SAHYADRI ISIN: INE280H01015
  |   Sector:  Construction & Infrastructure   |   Industry:  Cement & Construction Materials

Snapshot

Q.1 Which industry/sub-sector does Sahyadri Industries Ltd belong to?
Sahyadri Industries Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.
Q.2 Is Sahyadri Industries Ltd a good quality company?
Sahyadri Industries Ltd is a good quality company, based on a consistently good 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 Sahyadri Industries Ltd undervalued or overvalued?
Sahyadri Industries Ltd appears Undervalued, as its key valuation ratios are lower 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 14.53 12.51
Price to Book 0.84 1.22
Price to Sales 0.52 0.70
EV to EBITDA 6.03 6.00
Q.4 Is Sahyadri Industries Ltd a good buy now?
Sahyadri Industries 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.

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

Q.1 Revenue growth of Sahyadri Industries Ltd?
Sahyadri Industries Ltd revenue growth is -4.6% for FY-2025, which is below its 5-year CAGR of 16.33%, indicating slower growth.

Q.2 Gross Profit margin of Sahyadri Industries Ltd?
Sahyadri Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.4% for FY-2025, which is below its 5-year median of 12.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Sahyadri Industries Ltd?
Sahyadri Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.98% for FY-2025, which is below its 5-year median of 13.6% indicating decreasing margins.

Q.4 Net Profit Margin of Sahyadri Industries Ltd?
Sahyadri Industries Ltd Net Profit Margin is 3.22% for FY-2025, is below its 5-year median of 6.25%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 8.4 12.7
Operating Profit Margin (%) 8.98 13.6
Net Profit Margin (%) 3.22 6.25

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sahyadri Industries Ltd?
Sahyadri Industries Ltd Return on Asset is 3.53%, which is below its 5-year historical median of 7.24%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sahyadri Industries Ltd?
Sahyadri Industries Ltd Return on capital employed is 7.12% for FY-2025, which is below its 5-year historical median of 14.38%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Sahyadri Industries Ltd?
Sahyadri Industries Ltd Return on equity is 5.27% for FY-2025, which is below its 5-year historical median of 11.61%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sahyadri Industries Ltd?
Sahyadri Industries Ltd Cash conversion cycle is 135 days, above its 5-year historical median of 114 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.1 1.16
ROE (%) 5.27 11.61
ROCE (%) 7.12 14.38
Cash Conversion Cycle 135 days 114 days

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

Q.9 Debt to Equity ratio of Sahyadri Industries Ltd?
Sahyadri Industries Ltd Debt-to-Equity ratio is 0.21, which is lower the industry average of 0.36, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sahyadri Industries Ltd?
Sahyadri Industries Ltd Debt to cash flow from operations is 1.45, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Sahyadri Industries Ltd?

Q.1 Promoter shareholding and pledge status of Sahyadri Industries Ltd?
Promoters hold 71.12% of the Sahyadri Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sahyadri Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sahyadri Industries Ltd vs industry peers?
Sahyadri Industries Ltd revenue CAGR is 16.33%, compared to the industry median CAGR of 5.89%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -4.6 5.9
Gross Profit Growth (%) -13.6 -0.6
Operating Profit Growth (%) -19.7 -2.5
Net Profit Growth (%) -26.9 -8.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.1 0.82
ROE (%) 5.27 7.28
ROCE (%) 7.12 9.38
Cash Conversion Cycle (days) 134.5 17

Valuation & price assessment

Q.1 Stock return of Sahyadri Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
18.2% -3.7% -5.8% 12.2%
Q.2 Valuation ratios of Sahyadri Industries Ltd vs historical?
The current P/E ratio of 14.53 is higher than its historical median of 12.51, 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 14.53 12.51 22.88
Price to Book 0.84 1.22 1.92
Price to Sales 0.52 0.70 1.41
EV to EBITDA 6.03 6.00 11.61

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