Cool Caps Industries Limited

Sector n/a · NSE

₹343.00+₹8.00 (+2.39%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

The 60-second version of Cool Caps Industries 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 ₹527 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 16.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +190% while net margin moved -49% 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+190%

Margin effect-49%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

18/ 100

Expensive

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

132.5x

PEG

—

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 14.4% to 16.8%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 15.9% to 10.7% — each rupee of shareholder capital earns less than it did.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 91% over 3 years, from ₹70 Cr to ₹134 Cr.
🔴High leverageFinancial
Debt/Equity of 1.72x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.
🟡Margins are compressingFinancial
EBITDA margin is down 2.2 points over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.92 — near-term obligations exceed near-term assets.

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 8.2% to 6.0%. 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 4.3x 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 15.9% to 10.7%. 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.

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

1Revenue growth stays above 32% a year✓ 42.6% CAGR
Latest reported year was 120.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.3x
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✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹4,035 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)

₹0.72

Profitable

Profitable on a per-share basis

ROE

10.7%

Moderate

Moderate capital efficiency

ROCE

16.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.72x

High

High leverage

Revenue Growth (YoY)

120.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-30.1%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

4.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.92

Adequate

Adequate, but no real cushion

Technical Snapshot

SMA 20 / SMA 50

22.4 / 22.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

23.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹182 Cr	₹153 Cr	₹238 Cr	₹527 Cr	+42.6%
EBITDA	₹15 Cr	₹15 Cr	₹35 Cr	₹31 Cr	+28.3%
EBITDA Margin	8.2%	9.8%	14.6%	6.0%	—
PAT (Net Profit)	₹6 Cr	₹4 Cr	₹12 Cr	₹8 Cr	+13.6%
EPS	₹0.42	₹0.29	₹1.04	₹0.72	+20.0%
ROE	15.9%	9.2%	21.8%	10.7%	—
ROCE	14.4%	9.7%	19.6%	16.8%	—
Total Debt	₹70 Cr	₹112 Cr	₹147 Cr	₹134 Cr	+24.0%
Free Cash Flow	-₹33 Cr	-₹43 Cr	-₹28 Cr	₹2 Cr	—

🟢 Revenue has grown at 42.6% a year over 3 years.

🟢 EBITDA has grown at 28.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.2% to 6.0% over 3 years (-2.2 pts).

🟢 PAT (Net Profit) has grown at 13.6% a year over 3 years.

🟢 EPS has grown at 20.0% a year over 3 years.

🔴 ROE has fallen from 15.9% to 10.7% over 3 years (-5.2 pts).

🟢 ROCE has risen from 14.4% to 16.8% over 3 years (+2.4 pts).

🔴 Total Debt has grown at 24.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹33 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹279 Cr

Total Liabilities

₹201 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹32 Cr

Capex

-₹30 Cr

Recent News

1 mixed5 general

Cool Caps Industries Share Price Fall and Valuation Check

Univest, 29 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Cool Caps Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 21 Sept

BHAVIK ENTERPRISES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

5 Best Small-Cap Stocks To Buy In India October 2026 | Top Picks & Guide

Samco, 15 Oct

Cool Caps Industries Ltd. Share Price Within 2% of 52W Low

Univest, 12 Aug

Small caps vs large caps: Where should investors put their money for the next 2 years? Experts suggest allocation bucket

Livemint, 10 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
2 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

MiddlingBusiness Quality · Growth · Valuation

WeakFinancial Health · Profitability · 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. 3 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 ↑