Blue Pebble Limited

Sector n/a · NSE

₹264.05−₹9.15 (−3.35%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

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

How does it make money?

Turns over ₹46 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.4%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +733% while net margin moved +60% 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+733%

Margin effect+60%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

60/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

13.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 10.2% to 15.9% over 3 years.
High return on capital employed
ROCE of 24.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 33.4% to 18.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 32.9% to 24.4% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 1267% against revenue up 733% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹7 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 10.2% to 15.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Returns on shareholder capital are falling
ROE has dropped from 33.4% to 18.4%. 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.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 77% a year✓ 102.8% CAGR
Latest reported year was 107.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 15.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 21%✓ 24.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 8 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹108 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

18.4%

Strong

Strong capital efficiency

ROCE

24.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

107.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

33.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

11.1%

Good

Strong bottom-line conversion

Current Ratio

3.71

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

68.6 / 70.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.6

Oversold zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹5 Cr	₹16 Cr	₹22 Cr	₹46 Cr	+102.8%
EBITDA	₹1 Cr	₹3 Cr	₹5 Cr	₹7 Cr	+135.5%
EBITDA Margin	10.2%	17.7%	23.4%	15.9%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	₹4 Cr	₹5 Cr	+137.0%
EPS	₹0.93	₹4.91	₹9.18	—	—
ROE	33.4%	63.7%	54.4%	18.4%	—
ROCE	32.9%	77.8%	71.0%	24.4%	—
Total Debt	₹0 Cr	₹0 Cr	—	—	—
Free Cash Flow	₹0 Cr	₹1 Cr	₹1 Cr	-₹7 Cr	—

🟢 Revenue has grown at 102.8% a year over 3 years.

🟢 EBITDA has grown at 135.5% a year over 3 years.

🟢 EBITDA Margin has risen from 10.2% to 15.9% over 3 years (+5.8 pts).

🟢 PAT (Net Profit) has grown at 137.0% a year over 3 years.

🔴 ROE has fallen from 33.4% to 18.4% over 3 years (-15.0 pts).

🔴 ROCE has fallen from 32.9% to 24.4% over 3 years (-8.5 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹7 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹36 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹5 Cr

Recent News

1 positive1 mixed4 general

Blue Pebble Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 27 Aug

Blue Pebble Limited Reports Audited Financial Results for Half Year and Full Year Ended March 31, 2026

scanx.trade, 15 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

SJP ULTRASONICS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 08 Oct

NSE sought clarification from several companies on unusual price and volume movements

Traders Union, 08 Sept

Northern Dynasty Minerals Stock Surges 6.91% as Pebble Project Court Decision, Copper-Gold Optionality and Strategic Metals Exposure Drive Focus

kalkine.ca, 20 Aug

NSE SME stock declares Q4 results 2025, 5% final dividend for FY25

Livemint, 15 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
4 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 4 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑