Shetron Ltd – incorporated in 1980 – has been rolling out metal cans, dry cell battery jackets, and printed tinplate sheets for over four decades. Market cap = ₹134 Cr, sales = ₹233 Cr, profits = just ₹3 Cr. Basically, they sell packaging, but their P/E of 42× suggests the market thinks they’re selling luxury handbags. ROE = 5%, ROCE = 11.5%, dividend yield = 0.67%. It’s the packaging equivalent of Maggi – fills you up, but nutritionally questionable.
2. Introduction
Packaging is one of those unsexy industries that makes the world run. Without companies like Shetron, your Pepsi, Tata Coffee, or HUL pickle jars would be rolling around naked. The firm specializes in food & beverage cans, decorative tins, battery jackets, and twist-off caps. In fact, they’re one of the largest integrated producers of battery jackets in South East Asia.
The clientele list reads like FMCG royalty – Nestlé, HUL, ITC, Eveready, Marico – basically, the “Who’s Who” of the pantry. Exports make up 20% of revenue, spread across Canada, Australia, Mexico, and Africa. Sounds glamorous, but the margins tell another story – OPM is just 7.6%, and PAT margin a meagre 1.35%.
Think of Shetron as that old relative at weddings who’s present in every group photo, but nobody quite notices. Essential, dependable, but never the star.
3. Business Model – WTF Do They Even Do?
Shetron makes and sells:
Food & beverage cans (think Coke, fruit pulp, baked beans).
Their plants are in Bangalore and Asangaon (Maharashtra). Customers are spread across FMCG, food processing, pharma, paints, and batteries.
But here’s the catch: 50%+ of their raw material comes from one overseas supplier. One hiccup in China/Taiwan/South Korea, and Shetron could be scrambling for tinplate like Indians scrambling for onions in 2010.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹68.8 Cr
₹64.6 Cr
₹54.5 Cr
+6.5%
+26%
EBITDA
₹5.1 Cr
₹5.4 Cr
₹4.0 Cr
-5.5%
+26.5%
PAT
₹1.62 Cr
₹1.53 Cr
₹0.25 Cr
+5.9%
+548%
EPS (₹)
1.80
1.70
0.28
+5.9%
+543%
Annualised EPS ≈ ₹7.2. On that, forward P/E ≈ 20×. On reported FY25 EPS = ₹3.5, P/E = 42×. The valuation confusion is so wide, even Shetron’s cans can’t seal it.
5. Valuation – Fair Value Range
Method 1: P/E
EPS (FY25) = ₹3.5
Apply 15–25× band (industry ~22.5×)
FV = ₹50 – ₹90
Method 2: EV/EBITDA
EV = ₹174 Cr
EBITDA = ~₹19 Cr
EV/EBITDA = 9.3×
Apply fair 7–9× → FV = ₹120 – ₹160
Method 3: DCF (Assume 5% growth, WACC 12%)
FV ≈ ₹100 – ₹120
👉 Overall FV Range = ₹90 – ₹160/share (Current price = ₹149, basically fair-ish, no can of gold inside) Disclaimer: For educational purposes only.
6. What’s Cooking – News, Triggers, Drama
Expansion into industrial packaging for non-seasonal products.
