Confidence Futuristic Energetech Limited

Utilities — Utilities - Regulated Gas · NSE

₹41.00−₹0.01 (−0.02%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again 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 Confidence Futuristic Energetech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Confidence Futuristic Energetech Limited engages in the manufacture and supply of LPG cylinders under the Go Gas Elite brand name for domestic and commercial users in India. It operates through Cylinder and LPG segments.

IndustryUtilities - Regulated Gas

SectorUtilities

Annual revenue₹158 Cr

How does it make money?

Turns over ₹158 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER LTD. 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 3.3% 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 ROE15.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +30% while net margin moved -32% 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+30%

Margin effect-32%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 3.3% is below 10% — capital is not working hard
✗ ROCE has fallen by 3.2 points — returns are eroding
• EBITDA margin of 13.0% is respectable
✗ Net margin of 5.2% is slim
• Revenue has compounded at 9.0% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

80/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

14.4x

Sector Median

20.6x

median of 4 sector peers

🟢Against its sector it trades 30% below the peer median of 20.6x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

20.6x median of 4 peers · -30%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 6.6% to 3.3% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 86% over 3 years, from ₹91 Cr to ₹169 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.0 points, from 20.0% to 13.0%.
🔴Receivables growing faster than salesFinancial
Receivables up 159% against revenue up 30% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 30% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 20.0% to 13.0%. 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 8.2x 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 159% against revenue up 30%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 11%✓ 13.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 8.2x
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✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 7% a year✓ 9.0% CAGR
Latest reported year was -12.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹29 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 10 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

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹103 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.4x

Cheap

Cheap against the generic band

P/B Ratio

0.73x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.85

Profitable

Profitable on a per-share basis

ROE

3.7%

Weak

Weak capital efficiency

ROCE

3.3%

Weak

Low return on total capital employed

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

-12.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

318.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.61%

Modest

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

Free Cash Flow

₹29 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.4%

Average

Average margins

Net Margin

5.2%

Average

Average bottom-line conversion

Current Ratio

2.74

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.64

Defensive

Steadier than the market

52W Range Position

52%

Mid-range

Technical Snapshot

RSI (14)

28.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹122 Cr	₹176 Cr	₹249 Cr	₹158 Cr	+9.0%
EBITDA	₹24 Cr	₹28 Cr	₹29 Cr	₹21 Cr	-5.5%
EBITDA Margin	20.0%	15.9%	11.6%	13.0%	—
PAT (Net Profit)	₹7 Cr	₹9 Cr	₹10 Cr	₹6 Cr	-3.9%
EPS	₹2.84	₹3.44	₹4.14	₹2.49	-4.3%
ROE	4.6%	5.4%	5.3%	3.7%	—
ROCE	6.6%	8.5%	7.3%	3.3%	—
Total Debt	₹91 Cr	₹66 Cr	₹135 Cr	₹169 Cr	+23.0%
Free Cash Flow	-₹49 Cr	₹16 Cr	-₹115 Cr	₹29 Cr	—

🟢 Revenue has grown at 9.0% a year over 3 years.

🔴 EBITDA has shrunk at 5.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 20.0% to 13.0% over 3 years (-7.0 pts).

🔴 PAT (Net Profit) has shrunk at 3.9% a year over 3 years.

🔴 EPS has shrunk at 4.3% a year over 3 years.

🟡 ROE has held roughly flat at 3.7% over 3 years.

🔴 ROCE has fallen from 6.6% to 3.3% over 3 years (-3.2 pts).

🔴 Total Debt has grown at 23.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹49 Cr to ₹29 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹406 Cr

Total Liabilities

₹199 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹34 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.7%

Corporate Actions

Dividend Rate

₹0.25

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

6 general

Confidence Futuristic Energetech Limited (CFEL) Share Price NSE

TechGraph, 07 Oct

CFEL Stock Price and Chart — NSE:CFEL

TradingView, 18 Aug

Confidence Futuristic Energetech Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Confidence Futuristic Energetech Ltd. Upper Circuit: Price and Key Data

Univest, 09 Sept

Confidence Futuristic Energetech fixes Sep 23 record date for 41st AGM

scanx.trade, 07 Sept

Confidence Futuristic Energetech Ltd. Upper Circuit: Price and Key Data

Univest, 10 Sept

Watch Items

Revenue growth is negative (-12.5%) on the latest reported period — check if this is one-off or a trend.
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

StrongValuation

MiddlingFinancial Health · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 4 high-severity red flags sit above this conclusion and should be read first.

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