1. At a Glance
Systematic Industries Limited is what happens when a 25-year-old steel wire company suddenly discovers the capital market gym and walks out flexing a ₹425 Cr market cap. Listed barely in October 2025, the stock is already chilling at around ₹190, down slightly from the post-IPO excitement but still carrying a full SME swagger. Trailing twelve-month sales stand at ₹536 Cr, quarterly sales jumped a dramatic 54%, and quarterly PAT grew 36.5% — not bad for a company whose products are mostly invisible wires that only matter when the electricity goes off. ROE is sitting at a muscular 25.8%, ROCE at 20.6%, and debt-to-equity at a manageable 0.53, which basically means lenders are invited but not yet running the household. The latest half-yearly results show revenue of ₹254 Cr and PAT of ₹9.28 Cr, with margins holding steady around 7%. It’s not flashy like consumer tech, but it’s quietly minting money while powering the country. The question is: is this a disciplined industrial athlete, or just IPO adrenaline?
2. Introduction
Systematic Industries was incorporated back in March 2000, when “optical fibre” sounded like sci-fi jargon and steel wires were just… steel wires. Fast forward two and a half decades, and the company is now manufacturing everything from high-carbon steel wires to OPGW cables, exporting to 30+ countries, and charming institutional investors enough to cough up ₹115 Cr in an IPO.
This is a classic Indian mid-industrial story: boring products, sweaty factories, government clients, and Excel sheets doing the real heavy lifting. No fancy brand recall. No Instagram reels. Just power transmission lines, infrastructure projects, and agro fencing quietly keeping the country stitched together.
But the timing is interesting. The company has just gone public, leverage has increased over the years, margins have improved meaningfully post-FY23, and the power & transmission segment alone contributes nearly 69% of revenue. That’s both comforting and scary. Comforting because India loves building transmission lines. Scary because PSU clients love delaying payments.
So where does Systematic Industries really stand today — structurally strong or structurally stretched? Let’s peel the galvanised coating and inspect the wire inside.
3. Business Model – WTF Do They Even Do?
Imagine a giant industrial kitchen where steel rods walk in naked and come out dressed as MS wires, GI wires, ACSR cores, and fancy zinc-aluminium alloy coated wires. That’s Systematic Industries in simple terms.
The company operates in two broad verticals:
First, steel wires. This is the bread-and-butter business, with products like carbon steel wire, high-carbon wire, galvanised iron wire, cable armour wire, ACSR core wire, ACS wire, and the exotically named Galvasys wires. These go straight into power transmission, infrastructure, agriculture fencing, and industrial usage.
Second, optical products. This includes Optical Ground Wires (OPGW) with an installed capacity of 6,000 km per year and Optical Fibre Cables (OFC) with 48,000 km capacity. Sounds fancy, right? Sadly, utilisation here is tragic — 2.53% for OPGW and 6.89% for OFC in FY25. That’s like owning a Ferrari and driving it only to the local kirana store.
Manufacturing
happens across four facilities — three in Silvassa and one in Valsad — with a combined steel wire capacity of 1,00,000 MTPA, currently utilised at a healthy 71.42%. That’s where the money is coming from.
Clients include Power Grid Corporation of India, BSNL, and RDSO, which means long contracts, decent volumes, and slow cash cycles. Top 10 customers contribute 34.39% of revenue, indicating moderate concentration risk but not heart-attack levels.
So yes, the business is boring. But boring businesses, when run well, often fund the exciting lifestyles of promoters.
4. Financials Overview (Half-Yearly Results Locked)
The latest financial announcement is clearly titled “Half Yearly Results”, so EPS annualisation will follow the half-yearly rule. Once locked, no funny business.
Half-Yearly Financial Comparison Table
Figures in ₹ Crores
| Metric | Latest Half (Sep 2025) | Same Half Last Year (Sep 2024) | Previous Half (Mar 2025) | YoY % | HoH % |
|---|---|---|---|---|---|
| Revenue | 254 | 165 | 282 | 54.0% | -9.9% |
| EBITDA | 18 | 14 | 21 | 28.6% | -14.3% |
| PAT | 9.28 | 7 | 11 | 32.6% | -15.6% |
| EPS (₹) | 4.16 | 4.05 | 6.70 | 2.7% | -37.9% |
Annualised EPS (Half-Yearly): ₹4.16 × 2 = ₹8.32
Now the fun part. Year-on-year growth looks delicious — revenue up 54%, PAT up 33%. But sequentially? There’s a mild hangover from the March half, where revenue and profits were higher. This isn’t unusual for project-based businesses, but it does remind us that growth here is not a straight line — it’s more like a power cable zig-zagging across states.
Margins remain stable around 7%, which in steel-linked businesses is respectable. The company isn’t printing money, but it’s not bleeding either.
So, would you rather have stable boring growth or volatile exciting spikes? Comment section, your turn.
5. Valuation Discussion – Fair Value Range Only
Let’s put on our valuation goggles and keep emotions outside the factory gate.
Method 1: P/E Based Valuation
- Current Price: ₹190
- Annualised EPS (H1): ₹8.32
- Implied P/E at CMP: ~22.8x
Industry P/E sits around 20–21x. Given SME liquidity risks but decent ROE, a reasonable educational P/E range could be 18x to 22x.
- Lower bound: 18 × 8.32 = ₹150
- Upper bound: 22 × 8.32 = ₹183
Method 2: EV / EBITDA
- Enterprise Value: ₹405 Cr
- TTM EBITDA:
