CPS Shapers Limited

Sector n/a · NSE

₹285.20₹0.00 (0.00%)

DalalBaazaar Score

35 / 100

🔴 Weak

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

The 60-second version of CPS Shapers 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 ₹31 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 4.4% 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.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -15% while net margin moved -94% 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-15%

Margin effect-94%

DalalBaazaar Score

35/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.3% a year
✗ Profit has declined at 62.7% a year
✗ Profit fell 23.7% in the latest year

Quality vs. Valuation

Company Quality

34/ 100

Weak

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.

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

No P/E available

EV/EBITDA

33.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 37% over 3 years.
Very low debt
Debt/Equity of 0.30x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 140.5% to 0.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 55.4% to 4.4% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 5 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.6 points, from 13.4% to 6.8%.
🔴Receivables growing faster than salesFinancial
Receivables up 189% against revenue up -15% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 52% against revenue up -15% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 95% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 37% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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 13.4% to 6.8%. 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 3.1x 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 189% against revenue up -15%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 140.5% to 0.6%. 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.
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

1EBITDA margin holds above 5%✓ 6.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 4.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

1 good · 6 neutral · 4 weak

Market Cap

₹65 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

0.6%

Weak

Weak capital efficiency

ROCE

4.4%

Weak

Low return on total capital employed

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

1.3%

Modest

Modest growth

Profit Growth (YoY)

-23.7%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

66.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

0.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.23

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

1145.1 / 1132.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹37 Cr	₹36 Cr	₹31 Cr	₹31 Cr	-5.3%
EBITDA	₹5 Cr	₹3 Cr	₹2 Cr	₹2 Cr	-24.6%
EBITDA Margin	13.4%	9.4%	6.3%	6.8%	—
PAT (Net Profit)	₹2 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-62.7%
EPS	₹11.72	₹4.62	₹0.77	—	—
ROE	140.5%	6.2%	1.0%	0.6%	—
ROCE	55.4%	17.0%	5.5%	4.4%	—
Total Debt	₹10 Cr	₹9 Cr	₹8 Cr	₹7 Cr	-14.3%
Free Cash Flow	-₹0 Cr	-₹5 Cr	-₹4 Cr	-₹3 Cr	—

🔴 Revenue has shrunk at 5.3% a year over 3 years.

🔴 EBITDA has shrunk at 24.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.4% to 6.8% over 3 years (-6.6 pts).

🔴 PAT (Net Profit) has shrunk at 62.7% a year over 3 years.

🔴 ROE has fallen from 140.5% to 0.6% over 3 years (-139.9 pts).

🔴 ROCE has fallen from 55.4% to 4.4% over 3 years (-50.9 pts).

🟢 Total Debt has shrunk at 14.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹33 Cr

Total Liabilities

₹11 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹1 Cr

Recent News

6 general

CPS Shapers Lower Circuit Today: Price, Data and Peers

Univest, 08 Oct

CPS Shapers shares see stellar listing: SME stock opens with 147% premium at ₹450 per share on NSE Emerge

Livemint, 07 Sept

CPS Shapers IPO to hit Dalal Street on August 29

Moneycontrol.com, 24 Aug

CPS Shapers IPO sees stellar response from investors, subscribed 236.67 times on final day

Moneycontrol.com, 31 Aug

Upcoming IPOs: Mono Pharmacare, Rishabh Instruments IPO among IPOs to open this week; check full list of IPOs, share allotment, subscription, listings, and other details

Business News, 28 Aug

EMS IPO: Check price band, GMP, other key things to know as issue opens tomorrow

Livemint, 07 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

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

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