Sahyadri Industries Ltd: Cement Sheets, Windmills & A Dividend of Re.1 – Investor Patience Required

1. At a Glance

Sahyadri Industries (SIL), part of the Patel Group, is one of those old-school companies that’s been around since 1947 and still makes a living selling cement sheets and asbestos boards. They’ve thrown in some windmills for ESG garnish and steel doors for side income, but 97% of the revenue still comes from building materials. The latest quarter? Sales flat, profit down 13.8%, stock down nearly 30% YoY, but hey – they declared a Re.1 dividend at the AGM, so clap please.

2. Introduction

Sahyadri is the kind of company that Indian investors love to forget about – boring building materials, zero glamour, no fancy IT buzzwords, and no unicorn dreams. Instead, it gives you cement roofing sheets, fibre boards, and a corporate presentation from 2015 that probably still has clipart.

Yet, there’s more here than meets the eye. With a network of 3,000+ distributors and brands like Swastik (roofing), Cemply (flat sheets), Ecopro (fibre boards), Sahyadri is a solid regional player. It has five manufacturing plants spread across Maharashtra, Orissa, Gujarat, Tamil Nadu, and Andhra Pradesh, with expansions planned in Orissa and Maharashtra worth ₹95 Cr each.

Exports contribute 11% of revenue – small but promising. The company also owns nine windmills, which sounds cool until you realize wind power is just 3% of revenue.

So, what’s the real story? An asbestos-era company trying to stay relevant in a non-asbestos world, battling low growth, and hoping expansions will pull it out of stagnation.

3. Business Model – WTF Do They Even Do?

Sahyadri has three legs to its stool (but one’s shorter than the others):

• Building Materials (97% of revenue):
  • Cement roofing sheets (asbestos + non-asbestos).
  • Fibre cement boards.
  • Accessories for construction.
  • Marketed under Swastik, Cemply, Ecopro.
• Steel Doors (tiny slice): Basically a side hustle – trading, not manufacturing.
• Wind Power (2–3% of revenue): Nine windmills in Maharashtra and Rajasthan. Enough to put ESG in their investor deck but not enough to move the needle.

In short: they sell sheets for roofs, flat boards for interiors, and a tiny bit of power to look modern.

4. Financials Overview

Annualised EPS = 9.8 × 4 = ₹39.2
At CMP ₹259 → Forward P/E ≈ 6.6x (looks cheap, but wait).

Commentary: Sales flat, margins shrinking, PAT volatile. The only exciting number is the QoQ jump – but