1. At a Glance
Standard Glass Lining Technology Ltd (SGLTL) has heat exchangers, glass reactors, and now—American dreams. With a ₹3,671 Cr market cap, 16.5% ROCE, and 13.9% YoY revenue growth, this isn’t your boring old steel fabricator. But at 57x PE and promoter selling red flags, is this really a durable growth engine—or just fancy glassware in a bull market showroom?
2. Introduction with Hook
Think of SGLTL as the Rolex of reactor vessels—shiny, precise, and sold with a helluva markup. The company is straddling the line between boutique manufacturing and global ambition. And yet, while the equipment is meant to contain pressure, investors may be feeling it more.
- FY25 Revenue: ₹614 Cr (up 13%)
- PAT: ₹69 Cr (vs ₹25 Cr in FY22)
- Promoter holding: Down by 12.1% last quarter
Because nothing says “long-term bullish” like promoters quietly tiptoeing out the door.
3. Business Model (WTF Do They Even Do?)
SGLTL manufactures glass-lined engineering equipment primarily for:
- Pharmaceuticals
- Chemical processing plants
- Agro-chemicals
- Heat exchangers (new)
Their offerings range from reactors, columns, receivers, condensers to custom reactors (65+ unique designs). They provide end-to-end services: design, manufacture, install, commission.
Their value chain isn’t just assembly—it’s white-glove, high-margin engineering wrapped in protective borosilicate.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 498 | 544 | 614 |
| EBITDA (₹ Cr) | 86 | 95 | 107 |
| EBITDA Margin | 17% | 17% | 18% |
| PAT (₹ Cr) | 53 | 60 | 69 |
| ROE (%) | 11.6% | 11.6% | 11.5% |
| ROCE (%) | 24% | 16% | 16.5% |
Margins are glassy and transparent—good for now, but no safety net for pricing shocks.
5. Valuation
- PE Ratio: 57.1x
- Book Value: ₹35.4
- CMP / BV: 5.2x
- EduInvesting Fair Value Range: ₹130 – ₹170
- Valuation Notes: This isn’t HDFC Bank. The company serves a niche and has high growth… but so did Borosil.
Premium is baked in for global expansion and margin profile. But future pricing power? TBD.
6. What’s Cooking – News, Triggers, Drama
- Begged the US Entry: Incorporated Standard Engineering Inc. in South Carolina in June 2025.
- AGI Hakko Tie-up: 20-year Japan partnership for heat exchangers with $2B TAM.
- Unit 5 Live: New production unit started + Unit 2 relocated = manufacturing optimization.
- $130 Cr CapEx Plan: For FY26, expected to drive 20–25% growth.
- Multiple Global Supply Agreements: Gale Process (US), Biocon (SG) = export fuel.
- Promoter Exit Watch: Promoter stake fell by 12.1% in just one quarter.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 199 |
| Reserves | 507 |
| Borrowings | 68 |
| Total Liabilities | 958 |
| Net Block (FA + CWIP) | 144 |
| Current Assets | 814 |
| Total Assets | 958 |
Takeaway: Debt down, assets up, but cashflow is tighter than a chemical seal ring.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net CF (₹ Cr) |
|---|---|---|---|---|
| FY25 | 5 | -160 | 141 | -14 |
| FY24 | -65 | -157 | 232 | 10 |
| FY23 | 2 | -29 | 33 | 5 |
Insights:
- Operating cash flow barely positive in FY25—thanks to bloated WC.
- Heavy CapEx funded via financing. Expansion bet is ON.
- Cash not gushing yet—more like controlled leakage.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 | FY24 |
|---|---|---|
| ROCE (%) | 16.5 | 24.0 |
| ROE (%) | 11.5 | 11.6 |
| Debtor Days | 127 | 104 |
| Inventory Days | 296 | 258 |
| CCC (Days) | 309 | 260 |
| Working Capital Days | 298 | 256 |
Verdict: Stressy. High WC days = capital-intensive ops. Not good if credit dries up.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT | OPM % | NPM % |
|---|---|---|---|---|---|
| FY25 | 614 | 107 | 69 | 18% | 11.2% |
| FY24 | 544 | 95 | 60 | 17% | 11.0% |
| FY23 | 498 | 86 | 53 | 17% | 10.6% |
Margins are stable. Topline growing double digits. But PE is factoring in hypergrowth, not “steady eddy.”
11. Peer Comparison
| Company | CMP (₹) | PE | ROCE % | OPM % | PAT (₹ Cr) | Sales (₹ Cr) |
|---|---|---|---|---|---|---|
| Kaynes Tech | 5,851 | 133.5 | 14.4 | 15.0 | 293 | 2,722 |
| Tega Industries | 1,940 | 64.6 | 17.7 | 20.7 | 200 | 1,638 |
| Syrma SGS | 703 | 72.9 | 12.4 | 8.5 | 171 | 3,787 |
| Standard Glass | 184 | 57.1 | 16.5 | 18.0 | 69 | 614 |
Verdict: SGLTL is smaller but catching up on margins. PE still too hot for comfort.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 60.41% (down 12.1% from last quarter)
- FIIs: 2.63%
- DIIs: 2.21%
- Public: 34.76%
- No. of Shareholders: 67,159 (expanding investor base)
Interpretation: Promoter exit needs to be explained. Institutions watching from sidelines.
13. EduInvesting Verdict™
Standard Glass isn’t standard anymore — it’s gunning for global chemical engineering glory. But investors must weigh the shiny:
✅ High margin niche business
✅ Global partnerships & capacity expansion
✅ Clean balance sheet
Against the risky:
❌ 57x PE
❌ Flat cash flows
❌ Promoter stake cut
❌ Working capital bloat
It’s a beautiful machine… but maybe not at this valuation. Sometimes, even borosilicate needs cooling before it cracks.
Metadata
– Written by EduInvesting Research | 18 July 2025
– Tags: Glass-Lined Equipment, Standard Glass Lining, Pharma Engineering, Heat Exchangers, SGLTL, CapEx, Chemical Industry Machinery
