Encode Packaging India Limited

Communication Services — Publishing · BSE

₹13.64₹0.00 (0.00%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:33 pm

Understanding the Business

Company site ↗

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

What does this company do?

Encode Packaging India Limited engages in the designing, branding, and printing business in India. It offers self-adhesive labels, printed labels, clampshell cards, belly bands, mono cartons, and hang and swing tags.

IndustryPublishing

SectorCommunication Services

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA 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?Little sign of one

Returns on capital of -0.0% 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.

Peer median ROE20.2%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

37/ 100

Weak

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

Valuation

85/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

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

—

PEG

—

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 3.15x — earnings must service borrowings before shareholders see anything.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.15x. Interest is payable whether or not the business has a good year.
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

1Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
2ROCE stays above 8%✗ -0.0%
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)
✓ Profit growing year-over-year
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 4 neutral · 5 weak

Market Cap

₹4 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

1.31x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.0%

Weak

Weak capital efficiency

ROCE

-0.0%

Weak

Low return on total capital employed

Debt/Equity

3.15x

High

High leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

99.6%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

-0.0%

Weak

Assets generate little profit

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

45.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

13.4 / 12.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

64.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹5 Cr	₹0 Cr	—	—
EBITDA	₹0 Cr	₹1 Cr	-₹0 Cr	-₹0 Cr	—
EBITDA Margin	8.6%	13.7%	-2596.1%	—	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹-0.14	₹0.14	₹-0.23	—	—
ROE	-1.4%	11.4%	-2.2%	-0.0%	—
ROCE	-1.8%	10.8%	-2.1%	-0.0%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+0.0%
Free Cash Flow	-₹0 Cr	₹0 Cr	-₹1 Cr	-₹0 Cr	—

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🟢 ROE has risen from -1.4% to -0.0% over 3 years (+1.4 pts).

🟢 ROCE has risen from -1.8% to -0.0% over 3 years (+1.8 pts).

🟡 Total Debt has been broadly flat over 3 years (0.0% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

27.4%

Corporate Actions

Ex-Dividend Date

21 Sept 2017

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

6 general

Encode Packaging India accepts resignation of company secretary

scanx.trade, 08 Oct

Encode Packaging India Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Encode Packaging India (BSE: 530733): Commercial Printing Business Overview and Insights

Kalkine India, 17 Sept

Encode Packaging India Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Encode Packaging AGM resolutions pass with 99.97% shareholder support

scanx.trade, 30 Sept

ENCODE Stock Price and Chart — BSE:ENCODE

TradingView, 17 Feb

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongValuation

MiddlingGrowth

WeakBusiness Quality · Financial Health · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 2 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑