EPack Prefab Technologies Limited

Industrials — Engineering & Construction · NSE

₹241.46−₹1.88 (−0.77%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

EPack Prefab Technologies Limited engages in manufacturing Pre-engineered and Prefabricated Building Solutions and EPS (Expanded Polystyrene) Packaging.

IndustryEngineering & Construction

SectorIndustrials

Employees2,671

Annual revenue₹1,513 Cr

How does it make money?

Turns over ₹1,513 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 2,671 employees supports ₹56.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹56.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. 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 18.7% 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 ROE14.1%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 20.9% and earnings to grow about 24.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.9%

Est. earnings growth+24.2%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +134% while net margin moved +65% 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+134%

Margin effect+65%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

71/ 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

25.6x

1.2Y Median

33.9x

14 monthly readings · mean 34.2x · range 22.3x–54.6x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 25% below its 1.2y median of 33.9x. 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 is priced broadly in line with the peer median of 30.1x.

vs. its own history

Cheap

33.9x median over 14 months · -25%

vs. sector peers

Fair

30.1x median of 3 peers · -15%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.1x

PEG

0.45

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 8.2% to 11.6% over 3 years.
Very low debt
Debt/Equity of 0.16x 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 19.0% to 12.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.0% to 18.7% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 225% against revenue up 134% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 157% against revenue up 134% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.7% 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 8.2% to 11.6%. 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 25% 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?

Sales are being booked faster than collected
Receivables are up 157% against revenue up 134%. 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 19.0% to 12.6%. 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.
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 25% a year✓ 32.7% CAGR
Latest reported year was 23.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹12 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 18.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹2,430 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.30x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.44

Profitable

Profitable on a per-share basis

ROE

12.6%

Moderate

Moderate capital efficiency

ROCE

18.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

23.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-3.2%

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

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

17.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.7%

Average

Average margins

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

1.60

Comfortable

Healthy short-term liquidity

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

247.6 / 238.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

46.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹648 Cr	₹896 Cr	₹1,123 Cr	₹1,513 Cr	+32.7%
EBITDA	₹53 Cr	₹86 Cr	₹118 Cr	₹175 Cr	+48.6%
EBITDA Margin	8.2%	9.6%	10.5%	11.6%	—
PAT (Net Profit)	₹24 Cr	₹43 Cr	₹59 Cr	₹93 Cr	+56.9%
EPS	—	—	₹5.91	₹9.95	—
ROE	19.0%	25.4%	16.8%	12.6%	—
ROCE	21.0%	26.0%	20.7%	18.7%	—
Total Debt	₹109 Cr	₹150 Cr	₹215 Cr	₹115 Cr	+1.6%
Free Cash Flow	-₹27 Cr	-₹25 Cr	-₹31 Cr	-₹12 Cr	—

🟢 Revenue has grown at 32.7% a year over 3 years.

🟢 EBITDA has grown at 48.6% a year over 3 years.

🟢 EBITDA Margin has risen from 8.2% to 11.6% over 3 years (+3.3 pts).

🟢 PAT (Net Profit) has grown at 56.9% a year over 3 years.

🔴 ROE has fallen from 19.0% to 12.6% over 3 years (-6.4 pts).

🔴 ROCE has fallen from 21.0% to 18.7% over 3 years (-2.2 pts).

🟡 Total Debt has been broadly flat over 3 years (1.6% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,427 Cr

Total Liabilities

₹692 Cr

Cash & Equivalents

₹67 Cr

Operating Cash Flow

₹136 Cr

Capex

-₹147 Cr

Shareholding (proxy)

Institutional Holding

2.5%

Insider Holding

75.3%

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹297.5

+23.2% vs CMP

Target Range

₹270 – ₹325

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive5 general

Compare with

Equitymaster, 16 Oct

EPack Prefab Technologies accepts resignation of CS Preeti Chauhan

scanx.trade, 14 Oct

EPack Prefab Technologies: Best Stock in Its Sector? Key Metrics

Univest, 25 Sept

Unique Picks: 10 stocks held by a single MF scheme in September; rally up to 225% in FY27 so far

The Economic Times, 13 Oct

Epack Prefab Technologies share price zooms 16% on ₹165 crore order win

Business Standard, 03 JunOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Take Care Before Jumping Onto EPack Prefab Technologies Limited (NSE:EPACKPEB) Even Though It's 34% Cheaper

Simply Wall Street, 23 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

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 — Free cash flow remains positive · see Key things to watch ↑