1. At a Glance – Blink and You’ll Miss It, Read and You’ll Get It
₹100 Cr market cap. ₹73 stock price. 3-month return: –24% (because markets love drama). Q3 FY26 numbers though? Sales ₹46.32 Cr (+18.3% YoY), PAT ₹2.56 Cr (+59% QoQ), OPM 13.62%. ROCE at 20.8%, ROE at 21.6%, debt at ₹38 Cr, D/E 0.71.
This is a classic SME story: boring on the surface, complicated underneath, and quietly compounding while everyone is busy tracking EV buzzwords on Twitter. Sellowrap sits deep inside automotive interiors, NVH foams, screen sealing, injection moulding, EPP—parts you never see, but your car definitely can’t function without.
The market punished the stock after listing euphoria cooled, but the business is still shipping parts, sweating assets, and inching margins up. Question is: is this just a cyclical auto tailwind, or is something structurally changing here?
2. Introduction – Not Sexy, But Necessary
Sellowrap Industries Limited was incorporated in 2004, and if that year rings a bell, it’s because India’s auto industry was just warming up back then. While OEMs were busy designing cars, Sellowrap was busy figuring out how to stick, seal, cushion, insulate, and mould everything inside them.
Fast forward to FY25–FY26 and this company is:
- Supplying 98.7% revenue from automotive
- Serving OEMs like Maruti Suzuki, Volkswagen, Daikin, Schneider Electric, Hanon Systems
- Running multi-location plants across Gurugram, Ranipet, Kancheepuram, Pune
- Sitting on an order book of ₹275+ Cr
- Operating at ~77% capacity utilisation
No flashy consumer brand. No influencer marketing. Just B2B grinding.
So why care?
Because auto ancillaries are where operating leverage hides, and SMEs with improving margins can surprise both ways—up and down. Ready to dig?
3. Business Model – WTF Do They Even Do?
Imagine
your car without:
- Door water shields
- NVH foam insulation
- Screen sealing parts
- Plastic interior & exterior moulded parts
- Tool kits, bumper cores, EPP packaging
Exactly. A noisy, leaky disaster.
Sellowrap’s Core Offerings
Two broad buckets:
1) Adhesive Parts
Foam sheets + adhesive/tape + precision cutting = finished components. These go into insulation, sealing, protection layers.
2) Non-Adhesive Parts
Dry foam sheets directly cut using dedicated tooling.
Add to that:
- Plastic injection moulding (interior/exterior)
- PU foam moulding
- Screen sealing
- EPP moulding (JV with Kaneka & Mitsui)
- Brought-out parts (value-added sourcing)
They don’t sell to you.
They sell to people who sell to you.
That’s where the money quietly sits.
4. Financials Overview – Numbers Don’t Lie, They Just Whisper
Quarterly Performance Table (Q3 FY26)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 46.32 | 39.16 | 43.69 | 18.3% | 6.0% |
| EBITDA (₹ Cr) | 6.31 | 3.82 | 5.82 | 65.2% | 8.4% |
| PAT (₹ Cr) | 2.56 | 1.61 | 2.84 | 59.3% | –9.9% |
| EPS (₹) | 1.86 | – | 2.07 | – | – |
Commentary:
Margins are expanding faster than revenue. That’s the story. Depreciation jumped (capex kicking in), finance costs cooled slightly, tax normalized. QoQ PAT dipped marginally due to depreciation, not operating weakness.
Ask yourself: would you rather own flat revenue with expanding margins, or fast revenue with collapsing margins?
5. Valuation Discussion – Fair Value Range Only
Step 1: Earnings
TTM PAT ~
