Shri Hare-Krishna Sponge Iron Ltd. (SHKSIL)
SME CapMetals stocks · SME cap · NSE
Shri Hare-Krishna Sponge Iron Ltd. (SHKSIL) manufactures sponge iron, MS ingots, steel shots & grits from its Raipur, Chhattisgarh facility. The company is transforming into a diversified, integrated steel and casting manufacturer, focusing on operational efficiency and expansion into high-value products.
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.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is mixed.
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 31 Mar 2026
Average · 30/100YoY data unavailable — classification deferred
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹27.2 Cr | NDF | -31.0% |
| EBITDA | ₹0.9 Cr | -82.1% | -84.3% |
| Operating margin | 3.2% | -841 bps | -1102 bps |
| PAT | ₹1.6 Cr | NDF | -66.7% |
| PAT margin | 5.7% | -473 bps | -609 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
H1 FY26 revenue grew 3.2% YoY to ₹39.43 Cr, with EBITDA stable at ₹7.20 Cr. PAT declined 3% YoY to ₹4.65 Cr, impacted by higher power costs. Capex surged to ₹18.70 Cr, up from ₹0.20 Cr.
The company is executing a strategic shift towards an integrated, diversified steel and casting manufacturer. While H1 FY26 PAT was impacted by power costs, the ongoing significant capex for a captive power plant and new high-value casting division, alongside recommencement of existing units, positions it for future growth and improved margins. Execution of these projects is key.
5 MW Green Energy Captive Power Plant
Expected to significantly reduce power costs and enhance operational efficiency, supporting recommencement of Furnace Division and Rolling Mill.
New Casting Division
Entry into specialized engineered steel and castings (Tooth Points, Grinding Media Balls, High Alloy Cast Steel Chain Links) for high-value sectors.
Re-commencement of Furnace Division
Resuming production of MS Ingots & High-Tensile Ingots, backed by captive green power, to support internal rolling and external demand.
Re-commencement of Rolling Mill
Restarting operations to produce Beams, Angles, Channels, and other structural steel sections, enhancing market presence.
5 MW Green Energy Captive Power Plant
On track for commissioning by the end of January 2026.
Casting Division
Commercial production targeted for May/June 2026 for specialized engineered steel and castings.
Rolling Mill
Rolling Mill to restart operations by March 2026.
Steel Shots & Grits Manufacturing Unit
Will resume operations with the commissioning of the Captive Power Plant.
Import Substitution Opportunity
New casting products address an import-heavy Indian market, creating a significant import-substitution opportunity.
Make in India Initiative
New casting division enhances brand positioning under Make in India, offering reliable domestic alternatives.
Infrastructure & Industrial Growth
Large and expanding domestic demand driven by growth in Defence, Mining, Cement, Automobile, Steel, and Engineering Industries.
Recurring Demand Pattern
Recurring demand due to fast replacement cycles for wear components (Tooth Points, Grinding Media Balls) and maintenance cycles for critical parts.
Higher Power Costs
PAT impacted YOY due to higher power cost from state electricity reforms.
Project Execution Risk
The thesis hinges on the successful and timely commissioning of the captive power plant, new casting division, and recommencement of existing units.
Commodity Price Volatility
As a metals company, the business is inherently exposed to fluctuations in raw material (sponge iron) and finished product prices.
Competition in Value-Added Products
Entry into specialized castings will face competition from existing domestic and international players, despite positioning as a high-quality indigenous alternative.
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.
H1 results are best compared year-over-year to account for potential seasonal variations in demand, production, and input costs in the metals sector. The company also explicitly states PAT was 'impacted YOY'.
Revenue from Operations
H1 FY26 revenue was ₹39.43 Cr, up from ₹38.2 Cr in H1 FY25.
EBITDA
H1 FY26 EBITDA was ₹7.20 Cr, up from ₹7.13 Cr in H1 FY25.
PAT
H1 FY26 PAT was ₹4.65 Cr, down from ₹4.79 Cr in H1 FY25.
Capex
H1 FY26 Capex was ₹18.70 Cr, significantly up from ₹0.20 Cr in H1 FY25.
Strategic Transformation
Management states this year has been a period of transformation, preparing the business for the next phase of expansion.
Cost Efficiency & Operational Reliability
The 5 MW Green Energy Captive Power Plant is expected to achieve a major shift in cost efficiency and operational reliability.
Diversified, Integrated Manufacturer
The company is shaping itself into a diversified, integrated steel and casting manufacturer with a strong presence across high-value product categories.
Value Creation
Management believes the steps taken today will unlock significant value for all stakeholders in the years ahead.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Captive Power Plant Commissioning | On track for commissioning by end of January 2026. | Confirmation of successful commissioning and initial impact on power costs. |
| Casting Division Commercial Production | Targeted for May/June 2026. | Announcement of commercial production and initial revenue contribution from new products. |
| Rolling Mill Restart | Targeted for March 2026. | Confirmation of restart and improved capacity utilization. |
| Power Cost Reduction | PAT impacted by higher power costs. | Evidence of reduced power costs and improved PAT margins post-captive power plant operation. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
38Bearishfull bear SMA stack · SMA20 -5.8% / mo · MACD − · near 52W low · sector +2.7pp vs Nifty (3M)
Technical chart
SHKSILdaily · 1Y · AUTO-22.7%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 42. Wait for confirmation.
- SMA20 falling (~6.2% over last month) — short-term momentum negative.
- RSI(14) at 42 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 56% off 52W high · 13% 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 35 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 35 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 11/15 to the score.
- Valuation contributes 19/30 to the score.
Main drags
- Penalty bucket subtracts 7 points.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Growth is weaker at 5/25; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
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: +0 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 32nd percentile of the scored universe and 28th percentile within Metals. Main check: financial discipline is weak at 30/100.
Healthy Trust Lite: Promoter holding is 73.6%. Key concern: ROCE is low at 7.8%.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Metals: 28th pctile, median 70 · SME: 36th pctile, median 64
2 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 73.6%.
- ▸Promoter pledge is zero.
Trust risks
- ▸ROCE is low at 7.8%.
- ▸ROE is low at 6.9%.
- ▸ROCE trend is -7.5%.
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
- 10.80
- P/B
- 0.63
- EV/EBITDA
- 12.45
- Market Cap
- 67.20Cr
Profitability
- ROE
- 6.88%
- ROCE
- 7.76%
- ROA
- 4.30%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 6.00%
- EPS 5Y
- 4.00%
- Revenue 3Y
- -11.00%
- EPS 3Y
- -16.00%
Balance Sheet
- Debt/Equity
- 0.27
- Interest Coverage
- 18.08×
- Altman Z
- 2.80
- Book Value
- 55.60
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- 0.07 Cr
- EPS TTM
- 3.23
Shareholding
- Promoter Hold
- 73.58%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 2%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Metals, ranked by similarity
Peers
Business-comparable names in Metals, ranked by similarity
Peers
Business-comparable peers in Metals — 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.