Captain Technocast Limited

Industrials — Metal Fabrication · BSE

₹235.00₹0.00 (0.00%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:04 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Captain Technocast Limited manufactures and sells investment casting products in India.

IndustryMetal Fabrication

SectorIndustrials

Employees265

Annual revenue₹130 Cr

How does it make money?

Turns over ₹130 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 265 employees supports ₹49.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin15.8%

Net margin8.9%

Revenue / employee₹49.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 26.0% against a peer median of 18.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE26.4%

ROE26.0%

Peer median ROE18.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +120% while net margin moved +81% 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+120%

Margin effect+81%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -1.08 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

78/ 100

Good

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

Valuation

49/ 100

Fair

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

46.9x

3Y Median

67.7x

40 monthly readings · mean 79.0x · range 37.5x–167.9x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 31% below its 3y median of 67.7x. 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 286% above the peer median of 12.2x.

vs. its own history

Cheap

67.7x median over 40 months · -31%

vs. sector peers

Expensive

12.2x median of 4 peers · +286%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

46.9x

P/B

10.45x

EV/EBITDA

27.5x

PEG

0.80

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 11.2% to 15.8% over 3 years.
Return on equity is rising
ROE has improved from 14.5% to 22.3%.
Return on capital is rising
ROCE has improved from 21.6% to 26.4%.
High return on capital employed
ROCE of 26.4% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 46.9x the stock trades 31% below its own median of 67.7x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 108% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 108% over 3 years, from ₹10 Cr to ₹20 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹11 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 11.2% to 15.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 31% 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.
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?

A premium to the sector to defend
It trades 286% above the peer median. That premium needs a reason that persists, or it closes.
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
2 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

1Revenue growth stays above 23% a year✓ 30.0% CAGR
Latest reported year was 32.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 15.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 26.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

6 good · 2 neutral · 3 weak

Market Cap

₹546 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

46.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

10.45x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹5.01

Profitable

Profitable on a per-share basis

ROE

26.0%

Strong

Strong capital efficiency

ROCE

26.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

32.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

17.5%

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

-₹15 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹235

ROA

13.7%

Good

Assets are working hard

Operating Margin

11.3%

Average

Average margins

Net Margin

8.8%

Average

Average bottom-line conversion

Current Ratio

1.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-1.08

Defensive

Steadier than the market

52W Range Position

60%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

232.0 / 252.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹59 Cr	₹64 Cr	₹92 Cr	₹130 Cr	+30.0%
EBITDA	₹7 Cr	₹7 Cr	₹13 Cr	₹20 Cr	+45.6%
EBITDA Margin	11.2%	11.3%	14.1%	15.8%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹8 Cr	₹12 Cr	+58.5%
EPS	₹1.43	₹1.89	₹3.47	—	—
ROE	14.5%	16.1%	19.9%	22.3%	—
ROCE	21.6%	23.0%	27.8%	26.4%	—
Total Debt	₹10 Cr	₹9 Cr	₹4 Cr	₹20 Cr	+27.7%
Free Cash Flow	₹2 Cr	₹2 Cr	₹4 Cr	-₹11 Cr	—

🟢 Revenue has grown at 30.0% a year over 3 years.

🟢 EBITDA has grown at 45.6% a year over 3 years.

🟢 EBITDA Margin has risen from 11.2% to 15.8% over 3 years (+4.5 pts).

🟢 PAT (Net Profit) has grown at 58.5% a year over 3 years.

🟢 ROE has risen from 14.5% to 22.3% over 3 years (+7.7 pts).

🟢 ROCE has risen from 21.6% to 26.4% over 3 years (+4.8 pts).

🔴 Total Debt has grown at 27.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹96 Cr

Total Liabilities

₹41 Cr

Total Debt

₹20 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹19 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.6%

Corporate Actions

Ex-Dividend Date

22 Sept 2023

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

2 mixed1 negative3 general

Captain Technocast Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 24 Sept

Captain Polyplast Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 15 Oct

Captain Technocast files AGM voting results; all resolutions pass

scanx.trade, 29 SeptResults

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

Captain Technocast Ltd. Share Price: 10% Decline Analysis

Univest, 31 JulPrice 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.

Captain Technocast Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

Captain Technocast shareholders approve Vartis stake sale

scanx.trade, 15 SeptOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong15.4/20

🟢Financial HealthStrong13/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong11.8/15

🔴ValuationDemanding6.7/15

🔴RiskHigh4/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 23% a year30.0% CAGR
✓EBITDA margin holds above 14%15.8%
✗Free cash flow remains positive-₹11 Cr
✓Debt / EBITDA stays below 2x1.0x
✓ROCE stays above 23%26.4%