Caprihans India Limited

Basic Materials — Specialty Chemicals · BSE

₹93.35−₹1.90 (−1.99%)

DalalBaazaar Score

30 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Caprihans India Limited engages in the pharmaceutical packaging business in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees537

Annual revenue₹702 Cr

How does it make money?

Turns over ₹702 Cr a year. Of every ₹100 of sales, about ₹-7 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 537 employees supports ₹1.31 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.31 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.3% 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.

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -24% while net margin moved -186% 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-24%

Margin effect-186%

DalalBaazaar Score

30/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 8.8% a year

Quality vs. Valuation

Company Quality

25/ 100

Weak

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

Valuation

44/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

11.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 7.4% to 9.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 13.3% to -11.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.7% to 2.3% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.59x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹47 Cr in the latest reported year.
🔴Inventory building faster than salesFinancial
Inventory up 38% against revenue up -24% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 21% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.4% to 9.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 9.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 13.3% to -11.7%. 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
4 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

1EBITDA margin holds above 8%✓ 9.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 9.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 0.3x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹112 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 2.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 2 neutral · 5 weak

Market Cap

₹164 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-27.53

Loss-making

Negative earnings per share — the business is losing money

ROE

-11.7%

Weak

Weak capital efficiency

ROCE

2.3%

Weak

Low return on total capital employed

Debt/Equity

1.59x

High

High leverage

Revenue Growth (YoY)

22.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

25.0%

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

₹112 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

10.6%

Average

Average margins

Net Margin

-3.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.03

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.77

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

109.4 / 111.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹924 Cr	₹695 Cr	₹738 Cr	₹702 Cr	-8.8%
EBITDA	₹69 Cr	₹60 Cr	₹51 Cr	₹67 Cr	-0.9%
EBITDA Margin	7.4%	8.6%	7.0%	9.5%	—
PAT (Net Profit)	₹72 Cr	-₹52 Cr	-₹63 Cr	-₹47 Cr	—
EPS	₹54.64	₹-39.31	₹-46.26	₹-32.08	—
ROE	13.3%	-10.6%	-14.5%	-11.7%	—
ROCE	14.7%	1.4%	0.2%	2.3%	—
Total Debt	₹630 Cr	₹747 Cr	₹668 Cr	₹615 Cr	-0.8%
Free Cash Flow	-₹53 Cr	-₹54 Cr	₹107 Cr	₹112 Cr	—

🔴 Revenue has shrunk at 8.8% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-0.9% a year).

🟢 EBITDA Margin has risen from 7.4% to 9.5% over 3 years (+2.1 pts).

🔴 PAT (Net Profit) has turned negative, from ₹72 Cr to -₹47 Cr.

🔴 EPS has turned negative, from ₹54.64 to ₹-32.08.

🔴 ROE has fallen from 13.3% to -11.7% over 3 years (-25.0 pts).

🔴 ROCE has fallen from 14.7% to 2.3% over 3 years (-12.4 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.8% a year).

🟢 Free Cash Flow has turned positive, from -₹53 Cr to ₹112 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,185 Cr

Total Liabilities

₹783 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹121 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.7%

Corporate Actions

Ex-Dividend Date

12 Sept 2019

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive2 mixed3 general

Caprihans India Share Price Rises 11.62%: Full Analysis

Univest, 17 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Caprihans India turns profitable in Q1FY27 with 22% revenue surge

scanx.trade, 11 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Caprihans India rejects pay hikes for President and VP at AGM

scanx.trade, 07 Oct

Bilcare forfeits 3.15 lakh Caprihans warrants worth ₹1.58 crore

scanx.trade, 05 Jun

Caprihans India (BSE:509486) Stock Price

Simply Wall Street, 28 Jul

Caprihans India Ltd Q1 FY27 Results Preview

Univest, 01 JulResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
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

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

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. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑