🟨 At a Glance
Saint-Gobain Sekurit India is the kind of company that shows up late to every party, quietly hands you a ₹2 dividend, and disappears before the DJ drops the beat. With 50 years in India’s auto glass market and a global French parent boasting €48 billion in revenue, it should’ve been a no-brainer multibagger. Instead? 9% sales CAGR, 17% ROE, and a 5-year stock return that got outpaced by your fixed deposit.
1. 🪝 Introduction: The Glass Ceiling (Literally)
What if we told you there’s a listed Indian subsidiary of a French MNC that:
- Has no debt
- Has 23% ROCE
- Pays over 50% of earnings as dividend
- Serves every major auto OEM from Bajaj to Mercedes
You’d say, “Where’s the catch?”
Well, Saint-Gobain Sekurit India Ltd (SGSIL) has all that — and still delivers just 4% TTM sales growth and 0 analyst coverage.
Welcome to the cleanest smallcap no one tracks.
2. 🏭 WTF Do They Even Do?
🛻 SGSIL makes automotive safety glass — windshields, side windows, rear screens — for:
- 3-Wheelers (e.g. Bajaj)
- Passenger Vehicles (e.g. Hyundai, Tata, Maruti)
- Commercial Vehicles (e.g. Ashok Leyland, BharatBenz)
It’s part of the “Mobility” vertical under Saint-Gobain’s High Performance Solutions.
📍 All manufacturing is done in Chakan, Pune — right in the auto hub.
📦 They sell to OEMs, not aftermarket.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY20 | FY23 | FY25 |
|---|---|---|---|
| Revenue | ₹135 Cr | ₹186 Cr | ₹208 Cr |
| PAT | ₹13 Cr | ₹29 Cr | ₹36 Cr |
| OPM | 14% | 19% | 19% |
| ROCE | 11% | 18% | 23% |
| ROE | 11% | 17% | 17.4% |
🧾 Dividend Payout: 51% in FY25
💡 Debt: Zero. Nada. Zilch.
But here’s the kicker: Sales CAGR over 5 years = 9%. That’s just sad.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | SGSIL | Uno Minda | Bosch | Schaeffler |
|---|---|---|---|---|
| P/E | 28x | 66x | 47x | 60x |
| ROCE | 23% | 18.9% | 21.1% | 25.7% |
| Dividend Yield | 1.8% | 0.2% | 1.6% | 0.7% |
| CMP / BV | 4.7x | 10.8x | 6.9x | 11.3x |
SGSIL has the lowest P/E among peers despite decent return metrics.
Valuation isn’t crack-level — but you’re clearly not overpaying.
🧮 EduFair™ Value Range:
- EPS FY25: ₹3.95
- Fair P/E: 30x (given debt-free + strong ROCE)
- 🎯 Fair Value = ₹119
- Rerating Scenario (35x) = ₹138
📍 EduFair™ Range: ₹119–₹138
CMP ₹112 is still below fair value — but only just.
5. 🔍 What’s Cooking – News, Triggers, Drama
- 🧃 Dividend ₹2/share in FY25, 51% payout
- 🏗️ Capex light – only ~₹1 Cr CWIP
- ⚡ Green power sourcing investment in Radiance MH Sunshine (yes, actual name)
- 🧑💼 New CFO and director appointed (May 2025)
- 🔍 Working capital days ballooned to 339 😵
🧯 Zero drama — almost boringly stable. Like French wine served at a Maruti dealership.
6. 💰 Balance Sheet – How Much Debt, How Many Dreams?
- Debt: ₹0
- Cash Reserves: Healthy
- Investments: ₹144 Cr (up from ₹51 Cr in FY19)
- Total Assets: ₹253 Cr
- Equity + Reserves: ₹216 Cr
Basically, they could do a buyback, special dividend, or just vibe. They choose to vibe.
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY23 | ₹34 Cr | ₹-5 Cr | ₹-28 Cr | ₹1 Cr |
| FY24 | ₹30 Cr | ₹-9 Cr | ₹-18 Cr | ₹2 Cr |
| FY25 | ₹28 Cr | ₹-8 Cr | ₹-19 Cr | ₹0 Cr |
Despite muted growth, they generate stable cash. Classic Saint-Gobain — predictable and cash-rich, even if not exciting.
8. 📐 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 23% |
| ROE | 17.4% |
| OPM | 19% |
| Interest Cover | Infinite |
| Dividend Yield | 1.78% |
| P/E | 28.4x |
✅ Margins: Among best in smallcap auto ancillaries
❌ Working Capital Days: 🚨 339 days. Red flag for efficiency.
9. 📈 P&L – Show Me the Money
| Year | Revenue | Net Profit | EPS |
|---|---|---|---|
| FY20 | ₹135 Cr | ₹13 Cr | ₹1.47 |
| FY21 | ₹105 Cr | ₹11 Cr | ₹1.25 |
| FY22 | ₹151 Cr | ₹48 Cr* | ₹5.23* |
| FY23 | ₹186 Cr | ₹29 Cr | ₹3.17 |
| FY24 | ₹201 Cr | ₹31 Cr | ₹3.43 |
| FY25 | ₹208 Cr | ₹36 Cr | ₹3.95 |
FY22 included ₹32 Cr in other income. Core PAT that year = ~₹16 Cr.
So really, profits have grown steadily but not explosively.
10. 👥 Miscellaneous – Shareholding, Promoters
- Promoter Holding: 75% (unchanged)
- FII/DII: Almost zero
- Public: 25% spread across 40,000+ investors
- MNC Parent: Saint-Gobain S.A. (France) — €48B sales, 75+ countries
You’re basically betting on European-level quality in Indian markets… for smallcap returns.
🧠 EduInvesting Verdict™
Saint-Gobain Sekurit India is the investment equivalent of mineral water in a steel tiffin — pure, proven, but just not spicy.
It delivers:
- No shocks
- No scams
- No debt
- No massive growth either
For yield-seeking, capital-protecting investors who like 1.5–2% dividends with 15% ROE — this is your Zen stock.
But if you want fireworks? This glass ceiling ain’t breaking anytime soon.
✍️ Written by Prashant | 📅 27 June 2025
Tags: Saint-Gobain Sekurit India, Auto Ancillaries, MNC Subsidiary, Auto Glass, Dividend Stocks, EduInvesting
