Simplex Castings Ltd

Price story A share price tends to move through four phases: moving sideways (stage 1), rising (stage 2), stalling near a high (stage 3) and falling (stage 4). Today Simplex Castings Ltd is in stage 2. The phase helps read everything below.

Simplex Castings Ltd's share price was ₹130 at the close on 16 October 2026. It has been rising for 72 weeks. That is 24.8% above its average price over the last 200 trading days. In the last 52 weeks it traded between ₹103 and ₹138, and today it sits 78% of the way up from that low.

There is not enough history yet to compare it with the NIFTY 500.

Over the last 2 months the share price moved +22% while the NIFTY 500 moved −6%, so it is ahead of the index over that whole period. The chart below shows the 13-week comparison for every week.

This page treats a rise as over when the price closes below its 200-day average on two Fridays in a row.

Valuation P/E is the share price divided by a year's profit per share: how many rupees the market pays for each rupee of yearly profit.

Simplex Castings Ltd's P/E is 22.2×, near the high end of its own history: higher than 70% of past readings. Its usual P/E (the middle reading) is 17.6×, over 10.0 years of weekly prices. This compares the share price with the company’s own past. It does not say what the business is worth.

In short: the multiple is high against its own past, so the earnings trend underneath matters more than the multiple.

What the price assumes This works the share price backwards. It asks one question: what yearly profit growth does the price already assume? The answer is the growth rate at which eleven years of profit (six years of growth, then five years of slowing) add up to that day's market value, after each year is discounted at 11%.

Worked out from its price on 11 October 2026, Simplex Castings Ltd's share price assumed profit growth of about 13.7% a year. Over the past 10 years its profit actually grew 18.0% a year. Today its P/E is 22.2×, higher than 70% of its own last 10 years.

The two numbers together. The multiple is high against its own past, and the growth the price assumes is close to what this company has actually delivered.

This is a one-day reading, taken on 11 October 2026. Every other number on this page, the multiple included, uses the latest price as of 16 October 2026. A higher price assumes more growth and a lower price less, so it changes whenever the price changes, and this page does not update it between measurements.

Business trend Every business is somewhere on a path of getting better or worse, and this section names where. The last 12 quarters of growth in revenue, profit and earnings per share, plus the return the business earns on its capital, are read as lines. Getting worse: the lines are falling. Turning around: a low point has just formed and the last few quarters are rising from it. Getting better: the rise from the low has lasted. Growing steadily: steady growth with healthy returns. Slowing from a peak: still high, but slowing. When the lines disagree the result is mixed; too little history means no reading. CAGR (compound annual growth rate) is the steady yearly rate that would turn the starting value into the latest one. It is the fairest way to compare growth over different periods. If the 1-year figure is much bigger than the 10-year one, recent growth is running faster than the long-run trend. A dash means there is no figure for that period, or the starting year was a loss, where a growth rate means nothing.

Simplex Castings Ltd's business is giving mixed signals. Growth is slowing from a very fast pace: revenue growth has eased from +88.6% at its peak to +34.8% (from single-quarter figures), but the business is still expanding, with ROCE rising at 24.0%. This is based on 9 quarters of 3 measures, with some gaps.

Why it matters: when the lines disagree, each line above matters more than any single label.

One or more growth lines have an extreme jump caused by comparing with a near-zero or loss-making quarter. Those jumps are capped before reading and drawn at the edge of the chart, so one odd quarter does not decide the result.

The return figures here are yearly, not quarterly. They show level and direction only; they can support the growth lines but never decide the reading alone.

This reading has some gaps: at least one line is short, or the return line is not the quarterly series, so treat it with a little more caution.

4-Factor Sector Score

57.0 out of 100, rank 2 of 5 in Castings - Steel/Alloy, with 60% of the evidence available.

Simplex Castings Ltd scores 57.0 out of 100 against the 5 companies it is compared with in Castings - Steel/Alloy, ranking 2. The evidence is balanced: no factor stands out, so another reported quarter is needed before the picture is clearer.

The four parts add up to the total exactly: 21.1 + 15.1 + 11.5 + 9.3 = 57. This is the same number shown on the industry page; it is worked out once for the whole group and read here.

What would change it: The score would fall if profit growth turns negative or margins stop improving while the share price lags its sector.

Revenue Revenue is everything the company billed its customers in the period.

Simplex Castings Ltd reported ₹61.0 Cr of revenue in the Jun 26 quarter, +34.8% on the same quarter a year earlier. Over 10 years it has grown −0.3% a year on average. The last full year, FY26, came in at ₹202 Cr. The last four reported quarters add to ₹219 Cr.

FY26 revenue was ₹202 Cr, +17.4% on the year before.

Recent pace: the last four quarters grew +26.1% on average, against −0.3% a year over the longer run, so this year is growing faster than its own long-run rate.

Is growth speeding up? Revenue over the last 12 months grew +15.3%, against +37.9% a year over the last 8 quarters (rolling over); profit over the last 12 months grew +27.1%, against +155.9% a year (rolling over).

Operating margin Operating margin is what is left from every ₹100 of sales after the costs of running the business, before interest and tax. It shows pricing power and cost control.

Simplex Castings Ltd's operating margin was 18.9% in the Jun 26 quarter, 1.4 percentage points lower than the same quarter a year ago. Its latest full-year margin is the highest it has ever reported. Across 12 years it has been between −75.0% and 19.0%. The latest quarter is within that range.

🚨 Why the margin moved: operating margin changed −1.4 percentage points on the year while gross margin changed −2.3 points. So the drop came mostly from the gross margin, which means input costs and prices charged.

As noted under valuation: when margins are at a record, every ratio built on profit looks better than usual, so a low multiple can mislead.

Net profit Net profit is what is left after every cost, interest and tax. Earnings per share, dividends and book value all grow from it.

Simplex Castings Ltd earned ₹6.9 Cr of net profit in the Jun 26 quarter, +44.7% on the same quarter a year earlier. That is the 2nd quarter in a row of profit growth. Full-year FY26 profit was ₹21.0 Cr. Over 10 years profit has grown 18.0% a year on average. That is 11.3% of the quarter's revenue.

The same quarter a year earlier earned ₹4.7 Cr.

For the full year, FY26 profit was ₹21.0 Cr (+40.0% on the year before).

Why profit moved: revenue changed +34.8% on a year earlier and the margin moved −1.4 percentage points. Sales did the work, and the margin was about flat.

On average over the last four quarters, profit changed +35.0% and revenue +26.1%. Profit is growing faster than sales: fixed costs are spread over more sales, so each extra rupee of revenue adds more to profit.

Cash flow The profit and loss account shows what was earned. The cash-flow statement shows the cash that actually came in. Comparing operating cash flow with profit is one of the best checks that a profit is real.

Over the last 3 years, 53% of Simplex Castings Ltd's reported profit came in as cash from its operations, a gap worth watching. In FY26 it brought in ₹14.0 Cr of operating cash against ₹21.0 Cr of profit. After ₹19.0 Cr of spending on assets, free cash was ₹−5.0 Cr: it spent more than its operations brought in.

Cash-flow figures here are yearly, because quarterly cash statements are not published, so this section changes once a year.

🚨 Why 53% of profit came in as cash: the cash cycle got 128 days shorter between FY21 and FY26, so cash that used to wait in the business now arrives sooner. When less than 70% of profit comes in as cash, it is the thing to watch on this page.

What to look at next: the bigger use of cash is spending on new assets, at 2.8× depreciation over three years. The next section checks what that spending is building.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid. Debtor days: how long customers take to pay. Inventory days: how long stock sits. The cash cycle: the whole loop, in days of sales.

Simplex Castings Ltd's cash cycle, the days between paying suppliers and getting paid by customers, was 228 days in FY26, down from 356 days in FY21. It spent ₹34.0 Cr on assets over the last 3 years. Customers take 73 days to pay, and stock sits for 197 days on average.

At FY26 sales of ₹202 Cr, each day of that cycle ties up about ₹0.6 Cr, so roughly ₹126 Cr is tied up in the business at any time.

FY26: customers took 73 days to pay and stock sat for 197 days, about 6.5 months of sales sitting as stock, for a full cycle of 228 days, shorter than FY21's 356.

The full loop: cash goes out to suppliers and production on day 0. Stock sits for 197 days. Customers pay about 73 days after that. Suppliers are paid at 42 days. Together that makes the 228-day cycle.

Spending on assets: ₹34.0 Cr over the last 3 years, against ₹12.0 Cr of depreciation (the yearly wear and tear on existing assets). So it is building well beyond replacing what wears out. Work still in progress is ₹30.0 Cr (FY26): assets paid for that are not earning yet.

In short: the cash is going into new capacity, not getting stuck in the daily cycle. The question is whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it, from shareholders and lenders together. It is the best single test of whether growth adds value or just size.

Simplex Castings Ltd earned a ROCE of 24% in FY26. That is up from a low of −22% in FY20. We cannot compare its return on capital used with its cost of capital from the data we have. It comes from a 10.4% net margin and 1.03× asset turnover (sales divided by assets).

Why the return is what it is (FY26): a 10.4% net margin × 1.03× asset turnover × 1.74× leverage (assets divided by equity) ≈ 18.6% on equity. The margin does its share; borrowing is a big part of it.

Debt Debt-to-equity shows how much of the business is paid for with borrowed money. Interest cover shows how many times operating profit pays the interest bill. Low debt and high cover are the safe combination.

Simplex Castings Ltd had ₹50.0 Cr of borrowings against ₹113 Cr of equity in FY26, so its debt is 0.44× its equity. Its operating profit is 5 times its interest bill. Over 5 years borrowings went from ₹75.0 Cr to ₹50.0 Cr. Over the last 3 of those years it spent ₹34.0 Cr on assets.

The spending on assets is being paid for from cash, not new debt.

Ownership Who owns the company each quarter: promoters (the founders or controlling owners), foreign institutions, domestic institutions such as mutual funds, and the public. When people close to the business steadily raise their stake, that is worth noticing; a quiet list is also an answer.

Foreign institutions raised their stake in Simplex Castings Ltd by 7.5 percentage points over 8 quarters, the biggest change among its owners. Foreign institutions now own 7.5% of the company. Promoters moved −2.0 points over the same period, to 50.4%. This uses the four owner groups that companies report every quarter; nothing is guessed between filings.

Over the last two years: Foreign institutions: +7.5 points over 8 quarters, to 7.5%; Promoters: −2.0 points over 8 quarters, to 50.4%; Domestic institutions: +0.0 points over 8 quarters, to 0.0%.

Why the owners changed: foreign institutions drove it (+7.5 points), with the other side taken by promoters (−2.0 points). They raised their stake step by step.

Balance-sheet safety The Z-score estimates how far a company is from balance-sheet trouble. Above about 3 is safe; below about 1.8 is the danger zone. It was built for manufacturers, so it is not used for banks and lenders.

For Simplex Castings Ltd, the Z-score is not available, so we say so rather than guess one. It estimates how far the balance sheet is from trouble; it is not a forecast of failure. The debt, cash-flow and return sections show the balance-sheet figures we do have, each with its own date.

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