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Sanco Industries Overview

1. Business Overview

Sanco Industries Ltd. is an Indian manufacturer of a wide range of plastic pipes and fittings. The company produces PVC, CPVC, HDPE, MDPE, SWR, and casing pipes, along with their associated fittings. These products primarily cater to applications in plumbing, sanitation, water supply, agriculture (irrigation), borewell casing, and electrical conduits. The core business model involves manufacturing these plastic products and distributing them through a network to various end-users and projects. The company generates revenue through the sale of these manufactured plastic pipes and fittings.

2. Key Segments / Revenue Mix

Sanco Industries primarily operates within a single business segment: "Plastic Products." The company's revenue is derived almost entirely from the manufacturing and sale of its diverse range of plastic pipes and fittings. Specific breakdowns of revenue contribution by pipe type (e.g., PVC vs. CPVC vs. HDPE) or end-use application (e.g., agriculture vs. plumbing) are typically not publicly disclosed by the company.

3. Industry & Positioning

Sanco Industries operates in the highly competitive and fragmented Indian plastic pipes and fittings industry. This sector is characterized by the presence of several large national players (e.g., Supreme Industries, Astral, Finolex Industries), a multitude of regional brands, and unorganized players. Sanco Industries is a smaller-to-mid-sized regional player, likely with a stronger presence in specific geographies within India. Its positioning is generally based on competitive pricing, product quality within its target segments, and a developing distribution network, competing for market share against both larger established brands and other regional manufacturers.

4. Competitive Advantage (Moat)

Sanco Industries operates in a commoditized industry where product differentiation is limited. Its competitive advantages are likely modest:

Regional Presence & Distribution: A developed dealer network and manufacturing base in its primary operating regions can provide some logistical advantages and customer proximity.

Cost Efficiency: For smaller players, operational efficiency and competitive pricing can be a temporary advantage, though susceptible to raw material fluctuations.

Product Portfolio: A comprehensive range of pipes and fittings under one brand can appeal to distributors and contractors seeking a single-source solution.

The company generally lacks significant brand equity, proprietary technology, or dominant scale that would constitute a strong, durable moat against larger national players.

5. Growth Drivers

Infrastructure Development: Government initiatives in water infrastructure (Jal Jeevan Mission), sanitation, irrigation, and urban development drive demand for pipes and fittings.

Housing & Construction: Growth in residential and commercial real estate directly fuels demand for plumbing and drainage solutions.

Agricultural Growth: Continued focus on efficient irrigation systems and agricultural productivity increases the need for PVC and HDPE pipes.

Replacement Demand: Aging water infrastructure and existing piping systems create a consistent demand for replacement and upgrades.

Shift from Unorganized to Organized: A gradual shift of market share from unorganized local players to organized manufacturers due to quality, standardization, and GST compliance.

6. Risks

Raw Material Price Volatility: Key raw materials like PVC resin and other polymers are crude oil derivatives, making input costs highly susceptible to global oil price fluctuations and currency movements, directly impacting profitability.

Intense Competition: The presence of numerous large and regional players leads to pricing pressures and limits pricing power.

Economic Slowdown: A downturn in the construction, real estate, or agricultural sectors can directly impact sales and revenue.

Regulatory Changes: Changes in building codes, environmental regulations, or import duties on raw materials could affect operations and costs.

Working Capital Management: High working capital requirements due to inventory management and credit to distributors can pose liquidity challenges.

7. Management & Ownership

The company is promoted by K.V.P. Raju and his family, who form the core promoter group. The management structure is typical for a mid-sized Indian company, with the promoter family often holding key executive positions and a significant ownership stake. Information regarding specific details of management quality or governance beyond standard disclosures requires in-depth review of corporate filings and track record. Promoter holding indicates a significant vested interest in the company's performance.

8. Outlook

Sanco Industries operates in an essential industry with underlying tailwinds from India's economic growth, infrastructure push, and agricultural needs. The demand for pipes and fittings is expected to remain robust. The company's ability to navigate intense competition, manage volatile raw material costs, and expand its distribution network will be crucial. While opportunities exist through market consolidation and increasing organized sector share, Sanco faces the challenge of scaling operations and building a stronger brand against well-capitalized national players. Its outlook is largely tied to its execution capabilities, regional strength, and efficient cost management in a competitive market.

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Sanco Industries Key Financials

Market Cap ₹5 Cr.

Stock P/E -0.2

P/B 0.3

Current Price ₹3.6

Book Value ₹ 12.4

Face Value 10

52W High ₹4.2

Dividend Yield 0%

52W Low ₹ 1.7

Sanco Industries Share Price

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Volume
Price

Sanco Industries Quarterly Price

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Sanco Industries Peer Comparison

Sanco Industries Quarterly Results

#(Fig in Cr.)
Net Sales
Other Income
Total Income
Total Expenditure
Operating Profit
Interest
Depreciation
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
Profit After Tax
Adjustments
Profit After Adjustments
Adjusted Earnings Per Share

Sanco Industries Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
Net Sales 202 343 109 172 112 37 2
Other Income 0 0 0 0 0 2 0
Total Income 203 343 109 172 113 39 3
Total Expenditure 194 332 98 159 104 36 26
Operating Profit 9 11 10 14 9 3 -23
Interest 5 6 7 7 7 2 0
Depreciation 1 1 1 1 1 1 0
Exceptional Income / Expenses 0 -0 1 0 0 0 0
Profit Before Tax 3 4 4 6 1 0 -23
Provision for Tax 0 1 1 2 0 0 0
Profit After Tax 3 3 3 4 1 0 -23
Adjustments -0 -0 0 0 0 0 0
Profit After Adjustments 3 2 3 4 1 0 -23
Adjusted Earnings Per Share 2.7 2.4 3 4 0.9 0.4 -20.3

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR -95% -77% -64% 0%
Operating Profit CAGR -867% NAN% NAN% 0%
PAT CAGR 0% NAN% NAN% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 47% -27% -16% -22%
ROE Average -91% -29% -13% -7%
ROCE Average -28% -6% 3% 7%

Sanco Industries Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Shareholder's Funds 28 31 31 35 36 36 15
Minority's Interest 4 4 0 0 0 0 0
Borrowings 3 2 4 12 12 12 11
Other Non-Current Liabilities -0 0 0 0 3 3 3
Total Current Liabilities 45 57 63 97 74 73 64
Total Liabilities 80 95 98 144 125 124 92
Fixed Assets 7 4 3 3 3 2 2
Other Non-Current Assets 7 12 9 16 23 27 37
Total Current Assets 65 78 86 124 100 94 54
Total Assets 80 95 98 144 125 124 92

Sanco Industries Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Opening Cash & Cash Equivalents 2 2 -22 -25 -32 -44 -43
Cash Flow from Operating Activities -0 -1 -1 -1 -5 2 -2
Cash Flow from Investing Activities -3 -1 5 -1 0 2 0
Cash Flow from Financing Activities 3 2 -8 -4 -8 -2 1
Net Cash Inflow / Outflow -0 -0 -5 -7 -13 2 -1
Closing Cash & Cash Equivalent 2 1 -27 -32 -44 -43 -44

Sanco Industries Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Earnings Per Share (Rs) 2.67 2.42 2.96 3.96 0.91 0.35 -20.27
CEPS(Rs) 3.33 3.33 3.92 4.87 1.55 0.84 -19.95
DPS(Rs) 0 0 0 0 0 0 0
Book NAV/Share(Rs) 26.82 29.99 29.49 33.64 34.79 35.37 12.75
Core EBITDA Margin(%) 4.04 3.06 9.39 7.67 7.5 3.08 -965.49
EBIT Margin(%) 3.94 2.83 9.97 7.34 7.04 6.15 -969.71
Pre Tax Margin(%) 1.58 1.06 3.79 3.44 1.21 0.98 -972.84
PAT Margin (%) 1.37 0.73 2.8 2.37 0.83 0.96 -972.84
Cash Profit Margin (%) 1.69 1 3.71 2.91 1.41 2.31 -957.1
ROA(%) 3.44 2.85 3.15 3.37 0.69 0.29 -21.56
ROE(%) 10.02 8.58 9.95 12.55 2.65 1 -91.44
ROCE(%) 14.78 15.85 15.39 16.07 8.76 2.42 -27.79
Receivable days 60.58 43.71 171.19 134.91 193.51 394.76 4143.97
Inventory Days 24.11 14.51 60.66 63.69 124.15 395.76 4713.77
Payable days 30.11 19.76 83.3 90.81 140.44 252.89 266.64
PER(x) 6.67 8.61 36.55 7.79 16.94 19.82 0
Price/Book(x) 0.55 0.69 3.67 0.92 0.44 0.2 0.6
Dividend Yield(%) 0 0 0 0 0 0 0
EV/Net Sales(x) 0.2 0.17 1.39 0.47 0.67 1.72 27.4
EV/Core EBITDA(x) 4.66 5.39 14.37 5.93 8.75 22.94 -2.87
Net Sales Growth(%) 0 69.63 -68.35 58.53 -34.66 -66.74 -93.59
EBIT Growth(%) 0 21.76 11.56 16.78 -37.4 -70.93 -1111.53
PAT Growth(%) 0 -9.27 21.36 33.84 -77.12 -61.3 -6572.38
EPS Growth(%) 0 -9.39 22.29 33.84 -77.12 -61.3 -5882.66
Debt/Equity(x) 0.96 1.22 1.38 1.46 1.67 1.61 3.95
Current Ratio(x) 1.44 1.36 1.36 1.28 1.34 1.3 0.84
Quick Ratio(x) 1.15 1.12 1.01 0.89 0.82 0.71 0.54
Interest Cover(x) 1.67 1.6 1.61 1.88 1.21 1.19 -309.36
Total Debt/Mcap(x) 1.73 1.76 0.38 1.59 3.78 8.17 6.63

Sanco Industries Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 42.5 42.5 42.5 42.5 42.5 42.5 42.5 42.5 42.5 42.5
FII 0 0 0 0 0 0 0 0 0 0
DII 0 0 0 0 0 0 0 0 0 0
Public 57.5 57.5 57.5 57.5 57.5 57.5 57.5 57.5 57.5 57.5
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Sanco Industries News

Sanco Industries Pros & Cons

Pros

  • Stock is trading at 0.3 times its book value
  • Company has reduced debt.

Cons

  • Promoter holding is low: 42.5%.
  • Company has a low return on equity of -29% over the last 3 years.
  • Debtor days have increased from 252.89 to 266.64days.
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