Cubex Tubings Limited

Basic Materials — Copper · NSE

₹221.45+₹10.54 (+5.00%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Cubex Tubings Limited manufactures and fabricates copper and copper based alloy products in India and internationally. It offers copper products, such as DLP, DHP, ETP, and medical gas copper tubes; copper round and bus bars; and copper wires and profiles.

IndustryCopper

SectorBasic Materials

Annual revenue₹288 Cr

How does it make money?

Turns over ₹288 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. 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?Some evidence

ROCE of 15.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +51% while net margin moved +87% 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+51%

Margin effect+87%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 42.0x is demanding — it needs sustained high growth to justify
✗ P/E is 29% above its own historical median of 32.7x — expensive by its own standards

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

35/ 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.

Historical Valuation

Current P/E

42.0x

3Y Median

32.7x

40 monthly readings · mean 32.3x · range 14.8x–65.4x

Sector Median

28.7x

median of 4 sector peers

⚠️Current valuation is approximately 29% above its 3y median of 32.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 46% above the peer median of 28.7x.

vs. its own history

Expensive

32.7x median over 40 months · +29%

vs. sector peers

Expensive

28.7x median of 4 peers · +46%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

24.0x

PEG

1.02

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 3.4% to 5.2% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 4.1% to 8.9%.
Return on capital is rising
ROCE has improved from 7.6% to 15.2%.
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

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 236% over 3 years, from ₹13 Cr to ₹43 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 299% against revenue up 51% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.4% to 5.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The price already assumes success
The stock trades 29% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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 11% a year✓ 14.7% CAGR
Latest reported year was 30.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.5x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹4 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

5 good · 5 neutral · 1 weak

Market Cap

₹317 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

42.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.81x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.27

Profitable

Profitable on a per-share basis

ROE

8.9%

Moderate

Moderate capital efficiency

ROCE

15.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.52x

Low

Conservative leverage

Revenue Growth (YoY)

30.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

7.0%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.7%

Weak

Thin margins leave little room for error

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.80

Market-like

Moves roughly in line with the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

159.4 / 111.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

78.6

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹191 Cr	₹221 Cr	₹267 Cr	₹288 Cr	+14.7%
EBITDA	₹6 Cr	₹9 Cr	₹12 Cr	₹15 Cr	+32.1%
EBITDA Margin	3.4%	3.9%	4.4%	5.2%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹7 Cr	₹7 Cr	+41.2%
EPS	₹1.85	₹2.78	₹4.65	₹5.21	+41.2%
ROE	4.1%	5.8%	8.8%	8.9%	—
ROCE	7.6%	10.2%	12.9%	15.2%	—
Total Debt	₹13 Cr	₹15 Cr	₹33 Cr	₹43 Cr	+49.7%
Free Cash Flow	-₹1 Cr	₹2 Cr	-₹1 Cr	₹4 Cr	—

🟢 Revenue has grown at 14.7% a year over 3 years.

🟢 EBITDA has grown at 32.1% a year over 3 years.

🟢 EBITDA Margin has risen from 3.4% to 5.2% over 3 years (+1.8 pts).

🟢 PAT (Net Profit) has grown at 41.2% a year over 3 years.

🟢 EPS has grown at 41.2% a year over 3 years.

🟢 ROE has risen from 4.1% to 8.9% over 3 years (+4.9 pts).

🟢 ROCE has risen from 7.6% to 15.2% over 3 years (+7.6 pts).

🔴 Total Debt has grown at 49.7% a year over 3 years.

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹208 Cr

Total Liabilities

₹124 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

47.4%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 mixed5 general

Cubex Tubings sets Nov 6 EGM to approve ₹75 crore warrant issue

scanx.trade, 16 Oct

Cubex Tubings hits 5% upper circuit for 5th day in a row, eyes seventh annual gain. What’s driving the rally?

Livemint, 13 Oct

Cubex Tubings: Best Stock in Its Sector? Key Metrics

Univest, 24 Sept

Cubex Tubings (NSE:CUBEXTUB) Ticks All The Boxes When It Comes To Earnings Growth

Simply Wall Street, 19 SeptResults

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

Cubex Tubings Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Cubex Tubings Ltd (NSE: CUBEXTUB) Gains 20.00% as Stock Sees Renewed Market Interest

Kalkine India, 23 Sept

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
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

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability

WeakValuation · 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.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑