Containe Technologies Limited

Consumer Cyclical — Auto Parts · BSE

₹14.85+₹0.94 (+6.76%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Containe Technologies Limited engages in the design, development, manufacturing, and service of vehicle speed limiting devices and vehicle location tracking devices in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees12

Annual revenue₹24 Cr

How does it make money?

Turns over ₹24 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹2.00 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.00 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS 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 10.1% 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 ROE23.0%

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 +409% while net margin moved -42% 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+409%

Margin effect-42%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.64 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

84/ 100

Cheap

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.

Historical Valuation

Current P/E

13.0x

3Y Median

46.8x

40 monthly readings · mean 79.8x · range 12.0x–217.2x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 72% below its 3y median of 46.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 72% below the peer median of 45.7x.

vs. its own history

Cheap

46.8x median over 40 months · -72%

vs. sector peers

Cheap

45.7x median of 4 peers · -72%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.5x

PEG

0.30

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 6.7% to 10.1%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 115% over 3 years, from ₹4 Cr to ₹9 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 11.3 points, from 21.1% to 9.8%.
🟡Receivables growing faster than salesFinancial
Receivables up 433% against revenue up 409% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 72% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 72% 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 21.1% to 9.8%. 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 3.9x 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 433% against revenue up 409%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.

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

1Revenue growth stays above 54% a year✓ 72.0% CAGR
Latest reported year was 35.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹23 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.0x

Cheap

Cheap against the generic band

P/B Ratio

0.55x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.14

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

10.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.55x

Low

Conservative leverage

Revenue Growth (YoY)

35.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

69.0%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

3.7%

Average

Average asset productivity

Operating Margin

11.2%

Average

Average margins

Net Margin

4.3%

Average

Average bottom-line conversion

Current Ratio

2.03

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.64

High swing

Swings more than the market in both directions

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

15.0 / 17.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5 Cr	₹10 Cr	₹15 Cr	₹24 Cr	+72.0%
EBITDA	₹1 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+33.2%
EBITDA Margin	21.1%	22.6%	13.6%	9.8%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+43.0%
EPS	₹0.51	₹1.31	₹1.05	—	—
ROE	4.1%	11.2%	5.7%	6.1%	—
ROCE	6.7%	14.6%	9.5%	10.1%	—
Total Debt	₹4 Cr	₹7 Cr	₹9 Cr	₹9 Cr	+29.0%
Free Cash Flow	-₹4 Cr	-₹0 Cr	-₹5 Cr	₹1 Cr	—

🟢 Revenue has grown at 72.0% a year over 3 years.

🟢 EBITDA has grown at 33.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 21.1% to 9.8% over 3 years (-11.3 pts).

🟢 PAT (Net Profit) has grown at 43.0% a year over 3 years.

🟢 ROE has risen from 4.1% to 6.1% over 3 years (+2.0 pts).

🟢 ROCE has risen from 6.7% to 10.1% over 3 years (+3.4 pts).

🔴 Total Debt has grown at 29.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹37 Cr

Total Liabilities

₹20 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.4%

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 mixed5 general

Containe Technologies accepts resignation of CS Nikitha Sarda

scanx.trade, 16 Oct

CONTAINE TECHNOLOGIES Ltd Q1 Results

Livemint, 22 SeptResults

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

Containe Technologies Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 29 Aug

Containe Technologies Limited Rights Issue to Close on September 25, 2026; Company Aims to Raise Rs. 20.98 Crore

ThePrint, 25 Sept

Containe Technologies Opens ₹20.98 Cr Rights Issue

HDFC Sky, 08 Sept

Containe Technologies promoters' stake rises to 71.63% via rights issue

scanx.trade, 08 Oct

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

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth

WeakProfitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 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 ↑