Bandaram Pharma Packtech Limited

Consumer Cyclical — Packaging & Containers · BSE

₹18.60+₹0.08 (+0.43%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Bandaram Pharma Packtech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bandaram Pharma Packtech Limited operates in the paper industry in India. The company engages in the processing and supply of recycled wastepaper; and trading of paper board. It also supplies various categories of recycled paper to small and medium-size paper mills.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees4

Annual revenue₹63 Cr

How does it make money?

Turns over ₹63 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹15.73 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin4.4%

Net margin0.4%

Revenue / employee₹15.73 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 3.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE3.7%

ROE1.0%

Peer median ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +236% while net margin moved -67% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+236%

Margin effect-67%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 1.0% is weak
✗ ROE has fallen by 7.3 points over the period

Quality vs. Valuation

Company Quality

43/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

47/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

62.0x

3Y Median

59.2x

40 monthly readings · mean 59.6x · range 24.7x–124.9x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 59.2x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Fair

59.2x median over 40 months · +5%

vs. sector peers

Fair

69.2x median of 4 peers · -10%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

62.0x

P/B

1.20x

EV/EBITDA

20.4x

PEG

20.82

Dividend Yield

0.54%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 6.7% to 4.4% over 3 years.
Debt is rising
Total debt is up 69% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 8.4% to 1.0% — each rupee of shareholder capital earns less than it did.
Receivables growing faster than sales
Receivables are up 373% against revenue growth of 236% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 377% against revenue growth of 236% — stock may not be moving.

Red Flags

8 items require attention · 5 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 69% over 3 years, from ₹14 Cr to ₹24 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 373% against revenue up 236% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 377% against revenue up 236% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.6x to 1.4x.
🟡Margins are compressingFinancial
EBITDA margin is down 2.3 points over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 108% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 6.7% to 4.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 8.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 373% against revenue up 236%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 8.4% to 1.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 37% a year✓ 49.8% CAGR
Latest reported year was 195.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 8.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹33 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

62.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.20x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.3

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

3.7%

Weak

Low return on total capital employed

Debt/Equity

0.76x

Moderate

Moderate leverage

Revenue Growth (YoY)

195.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-71.7%

Falling

Profits are shrinking

Dividend Yield

0.54%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹18.6

Operating Margin

5.6%

Average

Average margins

Net Margin

0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.78

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

19.6 / 19.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹19 Cr	₹34 Cr	₹37 Cr	₹63 Cr	+49.8%
EBITDA	₹1 Cr	₹3 Cr	₹3 Cr	₹3 Cr	+30.4%
EBITDA Margin	6.7%	7.4%	7.4%	4.4%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹1 Cr	₹0 Cr	+3.0%
EPS	₹0.47	₹0.79	₹0.83	₹0.16	-30.2%
ROE	8.4%	4.2%	7.9%	1.0%	—
ROCE	5.2%	9.1%	8.5%	3.7%	—
Total Debt	₹14 Cr	₹12 Cr	₹17 Cr	₹24 Cr	+19.0%
Free Cash Flow	-₹4 Cr	-₹4 Cr	-₹5 Cr	-₹5 Cr	—

🟢 Revenue has grown at 49.8% a year over 3 years.

🟢 EBITDA has grown at 30.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.7% to 4.4% over 3 years (-2.3 pts).

🟢 PAT (Net Profit) has grown at 3.0% a year over 3 years.

🔴 EPS has shrunk at 30.2% a year over 3 years.

🔴 ROE has fallen from 8.4% to 1.0% over 3 years (-7.3 pts).

🔴 ROCE has fallen from 5.2% to 3.7% over 3 years (-1.5 pts).

🔴 Total Debt has grown at 19.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹76 Cr

Total Liabilities

₹44 Cr

Total Debt

₹24 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹5 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.5%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

22 Sept 2025

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

Bandaram Pharma board to meet Sept 30 to consider amalgamation

scanx.trade, 26 Sept

Bandaram Pharma Packtech Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Bandaram Pharma Packtech reduces textbook order value by ₹9.73 crore to ₹27.71 crore

Sahi, 11 Jun

Bandaram Pharma Packtech (BSE:524602) - Stock Analysis

Simply Wall Street, 07 Feb

Bandaram Pharma Packtech Limited Announces Board Changes with New Director Appointment and Resignation

scanx.trade, 30 Jan

Bandaram Pharma Packtech Limited (BANDARAM.BO) Stock Price, News, Quote & History

Yahoo! Finance Canada, 11 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate9.2/20

🟡GrowthModest10.9/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair8.3/15

🔴RiskHigh4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 37% a year49.8% CAGR
✓EBITDA margin holds above 2%4.4%
✗Debt / EBITDA falls below 3x8.6x
✗Free cash flow remains positive-₹5 Cr
✗Interest cover stays above 3x1.4x