Sanstar Limited (SANSTAR) AI Stock Analysis

Sanstar Limited

(NSE:SANSTAR)

Select Model

Rating:54.9Neutral

Price Target:INR 97.00▲(2.32% Upside)

Action:reiterated

Date:08/27/26

The score is primarily supported by strong revenue growth and a low-leverage balance sheet, but is held back by deteriorating free cash flow and year-over-year profitability compression. Technical indicators are weak (negative MACD, below short-term averages), and valuation is demanding with a high P/E and no dividend yield support.

Positive Factors

Strong Revenue GrowthThe 79% FY2026 revenue increase shows substantial expansion in the company’s top line and indicates meaningful demand or volume growth. If sustained, this creates a larger operating base, supports reinvestment, and can strengthen Sanstar’s position in its chemicals market over the coming quarters.

Negative Factors

Profitability CompressionFalling gross, operating, and net profit despite sharply higher revenue indicates that growth is not currently translating into stronger earnings. Persistent margin pressure or an unfavorable mix could limit the economic benefit of expansion and weaken sustainable earnings power over the next several quarters.

Sanstar Limited (SANSTAR) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 22.75B
Dividend Yield: ―
Average Volume (3M): 21.95K
Price to Earnings (P/E): 39.5
Beta (1Y): 1.24
Revenue Growth: 2.23%
EPS Growth: 60.74%
Country: India
Employees: 203
Sector: General
Sector Strength: 55
Industry: Chemicals

Sanstar Limited Business Overview & Revenue Model

Company Description

Established in 1982 and headquartered in Ahmedabad, India, Sanstar Limited (formerly Continental Papers Limited until its name change in April 2012) is a prominent manufacturer and global supplier of plant-derived specialty ingredients. The company o...

How the Company Makes Money

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Sanstar Limited Financial Statement Overview

Summary

Financials are mixed: very strong FY2026 revenue growth (+79%) and a conservatively positioned balance sheet with very low leverage support stability, but profitability weakened year over year (lower gross/operating profit and net income despite higher revenue). Cash flow is the key drag, with negative and worsening free cash flow despite improved operating cash flow.

Income Statement

62Positive

Balance Sheet

80Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2025
Income Statement
Total Revenue	2.42B	9.42B	7.85B
Gross Profit	-458.03M	1.24B	2.03B
EBITDA	52.70M	738.55M	494.40M
Net Income	55.17M	437.99M	344.50M
Balance Sheet
Total Assets	7.58B	7.58B	8.03B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.21B	1.61B
Total Debt	270.73M	270.73M	199.00M
Total Liabilities	983.88M	983.88M	1.09B
Stockholders Equity	6.59B	6.59B	6.94B
Cash Flow
Free Cash Flow	-247.65M	-535.74M	-468.80M
Operating Cash Flow	452.85M	387.35M	993.00M
Investing Cash Flow	1.34B	-1.75B	-1.89B
Financing Cash Flow	-775.40M	2.53B	-71.70M

Sanstar Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price94.80

Price Trends

50DMA104.41Negative

100DMA109.38Negative

200DMA100.65Negative

Market Momentum

MACD-4.02Positive

RSI42.55Neutral

STOCH41.34Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SANSTAR, the sentiment is Negative. The current price of 94.80 is below the 20-day moving average (MA) of 97.10, below the 50-day MA of 104.41, and below the 200-day MA of 100.65, indicating a bearish trend. The MACD of -4.02 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 41.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SANSTAR.

Sanstar Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SANSTAR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:INDOAMIN	76Outperform	INR 8.68B	10.73	―	0.42%	13.23%	22.22%
IN:VALIANTORG	64Neutral	INR 11.77B	21.82	―	―	1.41%	946.41%
IN:AMNPLST	62Neutral	INR 7.87B	20.29	―	0.35%	-12.40%	-3.04%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SANSTAR	55Neutral	INR 18.99B	39.55	―	―	2.23%	60.74%
IN:DMCC	53Neutral	INR 6.34B	15.85	―	0.98%	72.14%	34.49%
IN:UNIENTER	50Neutral	INR 6.11B	29.36	―	3.96%	-77.13%	―

* General Sector Average

Performance Comparison

IN:SANSTAR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SANSTAR	Sanstar Limited	94.80	-0.27	-0.28%
IN:AMNPLST	Amines & Plasticizers Ltd.	143.00	-70.91	-33.15%
IN:DMCC	DMCC Speciality Chemicals Limited	254.25	-45.46	-15.17%
IN:INDOAMIN	Indo Amines Limited	119.55	-12.92	-9.75%
IN:UNIENTER	Uniphos Enterprises Limited	87.90	-58.97	-40.15%
IN:VALIANTORG	Valiant Organics Limited	419.85	114.85	37.66%

Sanstar Limited Corporate Events

Sanstar Limited Publishes Voting Results from 44th AGM

Sep 25, 2026

Sanstar Limited has reported to the BSE and NSE the formal voting results of its 44th Annual General Meeting held on September 23, 2026, along with the consolidated scrutinizer’s report covering remote e-voting and electronic voting at the meet...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 26, 2026

Sanstar Limited AI Stock Analysis