Sellowrap Industries Ltd. (SELLOWRAP)
SME CapAuto stocks · SME cap · NSE
SK Group (Sellowrap Industries & Sellowrap EPP) is a leading manufacturer of auto components, supplying major OEMs across India and globally. It offers a diversified portfolio including Plastic Injection Moulding, Screen Sealing, Foams, PU molding, and Rubber EPP. 25% of products are exported to automotive giants like Jaguar Land Rover, Renault, Nissan, and Stellantis.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -26% YoY · margin compression · Rev +40% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹59.9 Cr | +39.5% | -11.8% |
| EBITDA | ₹3.8 Cr | -41.0% | -38.5% |
| Operating margin | 6.3% | -864 bps | -274 bps |
| PAT | ₹2.2 Cr | -26.3% | +24.4% |
| PAT margin | 3.7% | -326 bps | +107 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Sellowrap reported strong H2FY26 revenue from operations of ₹11,423.32 Lakhs, growing 31.07% YoY and 31.93% H-o-H. However, profitability faced transient pressures from geopolitical supply disruptions, forex volatility, and new labor regulations, leading to a decline in H2FY26 EBITDA margin to 11.87%.
While Sellowrap demonstrated robust top-line growth, H2FY26 profitability was impacted by significant external headwinds. Management has identified these pressures and initiated a four-pronged corrective strategy, including pricing revisions and automation, which are crucial for margin recovery and sustaining long-term growth. The underlying business model and OEM relationships appear intact.
Revenue by Product
Latest issuer-disclosed distribution across 5 reported categories.
Diversified Product Portfolio
Offers Plastic Injection Moulding, Screen Sealing, Foams, PU molding, Rubber EPP, catering to automotive and non-automotive industries.
Global Reach & Exports
25% of products are exported to automotive giants like Jaguar Land Rover, Renault, Nissan, and Stellantis, reaching markets in UK, Europe, North America, Brazil, Japan, and China.
Strategic Joint Venture
Partnership with KANEKA Corporation and MITSUI & Co. since 2005 for EPP solutions, including automotive parts like bumper cores and tool kits.
Proximity to OEMs
Manufacturing plants spread across key automotive hubs (NCR, Maharashtra, Tamil Nadu, Gujarat) ensuring proximity to major OEMs and Tier-1 customers.
Indian Auto Component Industry Growth
The Indian auto component industry expanded at a strong 14% CAGR from FY20 to FY25, establishing an $80 Billion market base.
Export Horizon
Indian auto component exports scaled 1.5x to $23 Billion by FY25, on a path to hit $100 Billion by FY2030, aspiring to grow at a CAGR of ~35%.
Localization Tailwinds
Localization tailwinds in the Indian auto component industry remain firmly in the company's favor.
Strong OEM Relationships
Management states that OEM relationships remain strong.
Geopolitical Conflict & Supply Disruptions
US-Israel airstrikes on Iran caused Strait of Hormuz traffic to fall ~70%, triggering energy price shocks and shipping chaos, impacting production of plastics, rubber & chemical compounds.
Forex Volatility & Raw Material Cost Escalation
INR depreciated 10%+ (₹85.53 to ₹94.71) from Mar 2025 to Mar 2026, inflating import-linked input costs. Polymer prices rose due to supply disruptions and rising feedstock costs.
New Labour Code Implementation
New 50% wage definition requires immediate salary restructuring; higher PF & gratuity liabilities add near-term cost pressure, especially for MSMEs & auto ancillaries.
Manpower Shortage & Productivity Pressure
Demand for skilled talent outpaces supply, leading to unfilled critical roles. Contractual workers show higher absenteeism, impacting throughput.
Persistent Geopolitical Uncertainty
Management acknowledges that geopolitical uncertainty may persist in the near term.
Continued Forex Volatility
Management acknowledges that forex volatility may persist in the near term.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both Half-on-Half (H-o-H) and Year-on-Year (YoY) comparisons are provided and relevant. YoY is important for understanding performance against seasonal trends in the auto sector, while H-o-H provides insight into sequential momentum and the immediate impact of recent operational challenges and corrective measures.
Revenue from Operations
H2FY26 Revenue from Operations was ₹11,423.32 Lakhs, a 31.07% increase YoY and 31.93% increase H-o-H.
EBITDA Margin
H2FY26 EBITDA margin was 11.87%, down from 12.34% in H2FY25 and 14.44% in H1FY26. Full year FY26 EBITDA margin was 12.96% vs 12.66% in FY25.
Exports Contribution
Exports accounted for 22.6% of total revenue in H2FY26.
Order Book
Current order book stands at ₹275 Cr+.
Operational Resilience & Revenue Milestone
FY26 tested operational resilience, but the company crossed a significant revenue milestone with margins improving over the prior year (FY26 EBITDA % 12.96% vs FY25 12.66%).
Structural Corrective Measures
Corrective measures initiated on pricing, automation, talent, and cost discipline are structural, not merely reactive, positioning the company as more capable.
Easing Headwinds & FY27 Focus
Headwinds are easing, and the company enters FY27 focused on delivering sustainable, margin-accretive growth for all stakeholders.
Investments for Future Growth
Investments made in people, processes, and automation position the company well for the next phase of growth.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin Recovery | H2FY26 EBITDA margin at 11.87%. | Evidence of margin expansion in FY27, driven by successful cost optimization, automation, and pricing pass-throughs. |
| Impact of Automation & Strategic Hiring | Investment in process automation underway; targeted hiring of experienced, multi-skilled operators. | Reduction in reliance on contractual workforce, improved output per head, and lower defect rates. |
| Export Growth Trajectory | Exports are 22.6% of revenue, with an industry aspiration for 35% CAGR. | Sustained growth in export volumes and contribution to overall revenue, especially to North America and Europe. |
| Order Book Conversion & New Wins | Current order book of ₹275 Cr+. | Timely execution of existing orders and announcement of new significant order wins from OEMs. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
34BearishSMA20 -5.8% / mo · MACD + · near 52W low · sector -3.3pp vs Nifty (3M)
Technical chart
SELLOWRAPdaily · 1Y · AUTO-8.8%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 49. Wait for confirmation.
- SMA20 falling (~6.1% over last month) — short-term momentum negative.
- RSI(14) at 49 — sideways, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 41% off 52W high · 9% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 62 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 62 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 75.0%.
- Valuation contributes 27/30 to the score.
- Growth contributes 22/25 to the score.
Main drags
- Penalty bucket subtracts 7 points.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
- Quality is weaker at 7/20; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 38th percentile of the scored universe and 23rd percentile within Auto. Main check: cash conversion is weak at 40/100.
Healthy Trust Lite: Promoter holding is 69.2%. Key concern: Operating cash flow is negative at ₹-14 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Auto: 23rd pctile, median 74 · SME: 45th pctile, median 64
4 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 69.2%.
- ▸Promoter pledge is zero.
Trust risks
- ▸Operating cash flow is negative at ₹-14 Cr.
- ▸2 latest quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 9.81
- P/B
- 1.03
- EV/EBITDA
- 4.45
- Market Cap
- 92.80Cr
Profitability
- ROE
- 14.80%
- ROCE
- 14.40%
- ROA
- 4.89%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 28.00%
- EPS 5Y
- 65.00%
- Revenue 3Y
- 16.00%
- EPS 3Y
- 55.00%
Balance Sheet
- Debt/Equity
- 0.50
- Interest Coverage
- 7.33×
- Altman Z
- 2.93
- Book Value
- 65.40
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- -14.00 Cr
- EPS TTM
- 6.80
Shareholding
- Promoter Hold
- 69.22%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 10%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Auto, ranked by similarity
Peers
Business-comparable names in Auto, ranked by similarity
Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.