Shankar Lal Rampal Dye-Chem Ltd. (SRD) AI Stock Analysis

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Shankar Lal Rampal Dye-Chem Ltd.

(NSE:SRD)

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Rating:62Neutral

Price Target:INR 50.00▲(7.00% Upside)

Action:reiterated

Date:09/06/26

The score is primarily held back by weak cash generation (persistently negative operating cash flow and free cash flow) despite revenue and earnings growth and a conservatively levered balance sheet. Technicals are neutral-to-mixed with the stock below longer-term averages, while valuation is a relative positive due to a moderate P/E and high dividend yield.

Positive Factors

Revenue and earnings growthThe company is expanding both revenue and absolute profit, indicating improving scale and continued demand for its specialty-chemical products. If sustained, this growth can strengthen operating capacity and provide a broader earnings base over the next several quarters.

Negative Factors

Persistent negative cash generationOperating and free cash flow remained negative in both reported years, meaning accounting profit is not yet translating into internally generated cash. Persistent cash conversion weakness can constrain reinvestment, dividends, and financial flexibility if it continues.

Shankar Lal Rampal Dye-Chem Ltd. (SRD) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.99B
Dividend Yield: 0.11%
Average Volume (3M): 4,014
Price to Earnings (P/E): 16.2
Beta (1Y): 0.60
Revenue Growth: 19.82%
EPS Growth: 92.88%
Country: India
Employees: 14
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Shankar Lal Rampal Dye-Chem Ltd. Business Overview & Revenue Model

Company Description

Shankar Lal Rampal Dye-Chem Limited specializes in the wholesale distribution of a wide array of dyes, chemicals, and associated materials. The company's extensive product range features items such as sulphur dyes, fully and semi-refined paraffin wax...

How the Company Makes Money

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Shankar Lal Rampal Dye-Chem Ltd. Financial Statement Overview

Summary

Revenue and net income grew (4.02B→4.65B; 113.9M→134.9M) and leverage remains low (debt-to-equity 0.16→0.21), but cash-flow quality is a major weakness with negative operating cash flow and free cash flow in both years (OCF -125.9M→-80.8M; FCF -126.2M→-84.9M). Margins are also thin, with gross margin slipping (5.67%→4.94%).

Income Statement

66Positive

Balance Sheet

74Positive

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024
Income Statement
Total Revenue	1.07B	4.65B	4.02B
Gross Profit	56.74M	229.76M	227.90M
EBITDA	37.46M	194.16M	164.05M
Net Income	25.16M	134.91M	113.92M
Balance Sheet
Total Assets	1.29B	1.57B	1.29B
Cash, Cash Equivalents and Short-Term Investments	14.17M	1.29M	14.17M
Total Debt	178.53M	253.71M	178.53M
Total Liabilities	193.04M	337.78M	193.04M
Stockholders Equity	1.10B	1.23B	1.10B
Cash Flow
Free Cash Flow	-83.41M	-84.87M	-126.17M
Operating Cash Flow	-83.11M	-80.79M	-125.88M
Investing Cash Flow	-295.10K	-4.08M	138.00K
Financing Cash Flow	74.61M	71.98M	104.67M

Shankar Lal Rampal Dye-Chem Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price46.73

Price Trends

50DMA39.45Positive

100DMA39.40Positive

200DMA42.97Positive

Market Momentum

MACD1.62Negative

RSI82.12Negative

STOCH95.28Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SRD, the sentiment is Positive. The current price of 46.73 is above the 20-day moving average (MA) of 40.28, above the 50-day MA of 39.45, and above the 200-day MA of 42.97, indicating a bullish trend. The MACD of 1.62 indicates Negative momentum. The RSI at 82.12 is Negative, neither overbought nor oversold. The STOCH value of 95.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SRD.

Shankar Lal Rampal Dye-Chem Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SRD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SRD	62Neutral	INR 2.99B	16.18	―	0.11%	19.82%	92.88%
IN:DYNPRO	61Neutral	INR 2.83B	12.62	―	0.66%	9.37%	25.43%
IN:ASAHISONG	59Neutral	INR 4.30B	12.30	―	0.41%	17.53%	194.88%
IN:PODDARMENT	57Neutral	INR 2.71B	18.22	―	1.57%	4.50%	-17.13%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:BODALCHEM	47Neutral	INR 19.90B	13.84	―	―	44.89%	306.54%

* General Sector Average

Performance Comparison

IN:SRD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SRD	Shankar Lal Rampal Dye-Chem Ltd.	46.73	-23.51	-33.47%
IN:ASAHISONG	Asahi Songwon Colors Ltd.	364.95	103.01	39.33%
IN:BODALCHEM	Bodal Chemicals Limited	158.00	101.00	177.19%
IN:DYNPRO	Dynemic Products Limited	227.50	-49.03	-17.73%
IN:SUDARCOLOR	Heubach Colorants India Limited	377.25	-99.40	-20.85%
IN:PODDARMENT	Poddar Pigments Limited	255.60	-4.09	-1.58%

Shankar Lal Rampal Dye-Chem Ltd. Corporate Events

Shankar Lal Rampal Dye-Chem Shareholders Clear All AGM Resolutions, Final Dividend Approved

Sep 21, 2026

Shankar Lal Rampal Dye-Chem Ltd. reported that its Annual General Meeting was held on September 19, 2026 via video conferencing and other audio-visual means, with all resolutions in the AGM notice passed by the requisite majority. The meeting was dee...

Shankar Lal Rampal Dye-Chem Details 21st AGM Proceedings and Voting Compliance

Sep 19, 2026

Shankar Lal Rampal Dye-Chem Ltd. reported that its 21st Annual General Meeting was held on September 19, 2026 via video conferencing and other audio-visual means, deemed to be convened at its registered office in Bhilwara, Rajasthan. The meeting comp...

Shankar Lal Rampal Dye-Chem Publishes Strong Q1 FY2027 Results

Aug 15, 2026

Shankar Lal Rampal Dye-Chem Ltd. has published its financial results for the quarter ended June 30, 2026 in both English and Hindi newspapers, in line with Indian listing regulations requiring wider public dissemination. The results notice, also post...

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: Sep 06, 2026

Shankar Lal Rampal Dye-Chem Ltd. AI Stock Analysis