East India Drums and Barrels Manufacturing Limited

Consumer Cyclical — Packaging & Containers · BSE

₹97.99+₹2.06 (+2.15%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 East India Drums and Barrels Manufacturing Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

East India Drums and Barrels Manufacturing Limited engages in the manufacturing and trading of drums and barrels, and allied products in India. It offers closed and open top drums, gooseneck drums, composite drums, and galvanized drums.

IndustryPackaging & Containers

SectorConsumer Cyclical

Annual revenue₹240 Cr

How does it make money?

Turns over ₹240 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

EBITDA margin7.4%

Net margin1.9%

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Some evidence

ROCE of 28.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE28.8%

ROE22.0%

Peer median ROE25.9%

DalalBaazaar Score

45/ 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

68/ 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

30.4x

2Y Median

31.0x

28 monthly readings · mean 25.5x · range 0.6x–55.2x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 2y median of 31.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 56% below the peer median of 69.2x.

vs. its own history

Fair

31.0x median over 28 months · -2%

vs. sector peers

Cheap

69.2x median of 4 peers · -56%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

30.4x

P/B

—

EV/EBITDA

11.2x

PEG

1.02

Dividend Yield

0.51%

What's Good / What's Bad

🟢 What's Going Well1

High return on capital employed
ROCE of 28.8% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention2

Debt is rising
Total debt is up 185% 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

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 185% over 3 years, from ₹20 Cr to ₹57 Cr.
🔴High leverageFinancial
Debt/Equity of 2.66x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.8x — little room if earnings dip.
🔴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 -₹16 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1550% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.8% 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.
Cheaper than its peers
It trades 56% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
4 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

1EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.2x
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✗ -₹16 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.8x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 26%✓ 28.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹145 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.4x

Fair

Fairly valued against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹3.22

Profitable

Profitable on a per-share basis

ROE

22.0%

Strong

Strong capital efficiency

ROCE

28.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.66x

High

High leverage

Revenue Growth (YoY)

-8.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

29.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.51%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹16 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹97.99

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.01

Adequate

Adequate, but no real cushion

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

95.2 / 99.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

66.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹263 Cr	₹240 Cr	—
EBITDA	-₹0 Cr	-₹0 Cr	₹15 Cr	₹18 Cr	—
EBITDA Margin	—	—	5.8%	7.4%	—
PAT (Net Profit)	-₹0 Cr	₹15 Cr	₹4 Cr	₹5 Cr	—
EPS	₹-0.09	₹6.49	₹2.44	₹3.16	—
ROE	—	—	19.0%	22.0%	—
ROCE	—	—	26.0%	28.8%	—
Total Debt	₹20 Cr	₹1 Cr	₹50 Cr	₹57 Cr	+41.8%
Free Cash Flow	₹0 Cr	₹14 Cr	₹24 Cr	-₹16 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹18 Cr.

🟢 EBITDA Margin has risen from 5.8% to 7.4% over 3 years (+1.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹5 Cr.

🟢 EPS has turned positive, from ₹-0.09 to ₹3.16.

🟢 ROE has risen from 19.0% to 22.0% over 3 years (+3.0 pts).

🟢 ROCE has risen from 26.0% to 28.8% over 3 years (+2.8 pts).

🔴 Total Debt has grown at 41.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹16 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹123 Cr

Total Liabilities

₹102 Cr

Total Debt

₹57 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.0%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

18 Nov 2025

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive1 mixed4 general

East India Drums seeks July 15 extension for FY26 results

scanx.trade, 18 OctResults

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

Compare with PRECISION CONT.

Equitymaster, 14 Oct

East India Drums and Barrels Manufacturing Ltd. Share Price Live Today

CNBC TV18, 25 Apr

Compare with PRECISION CONT.

Equitymaster, 16 Oct

East India Drums FY26 net profit rises to ₹467.41 lakh

scanx.trade, 18 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

East India Drums and Barrels Manufacturing Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

Revenue growth is negative (-8.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate9.1/20

🔴Financial HealthStretched6/20

🟡GrowthModest10/20

🟢ProfitabilityStrong9.8/15

🟡ValuationFair7.8/15

🔴RiskHigh2.5/10

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

This thesis breaks if

✓EBITDA margin holds above 5%7.4%
✗Debt / EBITDA falls below 3x3.2x
✗Free cash flow remains positive-₹16 Cr
✗Interest cover stays above 3x1.8x
✓ROCE stays above 26%28.8%