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Check Before You Invest : Shilchar Technologies Ltd

BSE: 531201 NSE: SHILCTECH ISIN: INE024F01011
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electric Equipment

Snapshot

Q.1 Which industry/sub-sector does Shilchar Technologies Ltd belong to?
Shilchar Technologies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.
Q.2 Is Shilchar Technologies Ltd a good quality company?
Shilchar Technologies 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 Shilchar Technologies Ltd undervalued or overvalued?
Shilchar Technologies 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 29.99 23.51
Price to Book 9.66 9.26
Price to Sales 7.28 5.30
EV to EBITDA 21.71 16.74
Q.4 Is Shilchar Technologies Ltd a good buy now?
Shilchar Technologies Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Shilchar Technologies Ltd?
Shilchar Technologies Ltd revenue growth is 57% for FY-2025, which is in line with its 5-year CAGR of 54.29%, indicating stable growth.

Q.2 Gross Profit margin of Shilchar Technologies Ltd?
Shilchar Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 32.2% for FY-2025, which is above its 5-year median of 21.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Shilchar Technologies Ltd?
Shilchar Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 29.73% for FY-2025, which is above its 5-year median of 19% indicating increasing margins.

Q.4 Net Profit Margin of Shilchar Technologies Ltd?
Shilchar Technologies Ltd Net Profit Margin is 23.57% for FY-2025, is above its 5-year median of 15.39%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 32.2 21.6
Operating Profit Margin (%) 29.73 19
Net Profit Margin (%) 23.57 15.39

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Shilchar Technologies Ltd?
Shilchar Technologies Ltd Return on Asset is 37.54%, which is above its 5-year historical median of 26.64%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Shilchar Technologies Ltd?
Shilchar Technologies Ltd Return on capital employed is 71.1% for FY-2025, which is above its 5-year historical median of 53.85%. 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 Shilchar Technologies Ltd?
Shilchar Technologies Ltd Return on equity is 52.78% for FY-2025, which is above its 5-year historical median of 42.86%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Shilchar Technologies Ltd?
Shilchar Technologies Ltd Cash conversion cycle is 72 days, below its 5-year historical median of 81 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.59 1.59
ROE (%) 52.78 42.86
ROCE (%) 71.1 53.85
Cash Conversion Cycle 72 days 81 days

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

Q.9 Debt to Equity ratio of Shilchar Technologies Ltd?
Shilchar Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Shilchar Technologies Ltd?
Shilchar Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Shilchar Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Shilchar Technologies Ltd?
Promoters hold 62.12% of the Shilchar Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Shilchar Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Shilchar Technologies Ltd vs industry peers?
Shilchar Technologies Ltd revenue CAGR is 54.29%, compared to the industry median CAGR of 13.01%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 57 13
Gross Profit Growth (%) 59.5 27.9
Operating Profit Growth (%) 63.7 28.4
Net Profit Growth (%) 59.8 28.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.59 1.06
ROE (%) 52.78 9.8
ROCE (%) 71.1 13.55
Cash Conversion Cycle (days) 72.25 99

Valuation & price assessment

Q.1 Stock return of Shilchar Technologies Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 45.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
45.5% 122.2% 85.1% -13.3%
Q.2 Valuation ratios of Shilchar Technologies Ltd vs historical?
The current P/E ratio of 29.99 is higher than its historical median of 23.51, 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 29.99 23.51 38.08
Price to Book 9.66 9.26 3.97
Price to Sales 7.28 5.30 2.75
EV to EBITDA 21.71 16.74 18.75

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