Epigral Limited

Basic Materials — Chemicals · NSE

₹994.00+₹19.60 (+2.01%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

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

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Epigral Limited manufactures and sells chlor-alkali and derivative products in India and internationally.

IndustryChemicals

SectorBasic Materials

Employees1,135

Annual revenue₹2,495 Cr

How does it make money?

Turns over ₹2,495 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹23 left at the operating level before interest, tax and depreciation. Each of its 1,135 employees supports ₹2.20 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin22.8%

Net margin13.3%

Revenue / employee₹2.20 Cr

Who are its competitors?

The closest listed comparisons in its industry are PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Little sign of one

Returns on capital of 13.9% 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.

ROCE13.9%

ROE14.9%

Peer median ROE15.4%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 20.7% and earnings to grow about 26.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.7%

Est. earnings growth+26.9%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +15% while net margin moved -18% 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+15%

Margin effect-18%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.8% — barely ahead of inflation
✗ Profit has declined at 2.1% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 37.9% in the latest year

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

67/ 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

15.9x

3Y Median

15.6x

40 monthly readings · mean 22.1x · range 9.6x–48.5x

Sector Median

33.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 15.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 53% below the peer median of 33.8x.

vs. its own history

Fair

15.6x median over 40 months · +2%

vs. sector peers

Cheap

33.8x median of 3 peers · -53%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.9x

P/B

1.93x

EV/EBITDA

8.5x

PEG

—

Dividend Yield

0.50%

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 26% over 3 years.
Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 31.3% to 22.8% over 3 years.
Return on equity is falling
ROE has dropped from 33.0% to 14.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 32.1% to 13.9% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 150% against revenue growth of 15% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 65% against revenue growth of 15% — stock may not be moving.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.5 points, from 31.3% to 22.8%.
🔴Receivables growing faster than salesFinancial
Receivables up 150% against revenue up 15% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 65% against revenue up 15% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 26% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 53% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹41 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 31.3% to 22.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 150% against revenue up 15%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 33.0% to 14.9%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 21%✓ 22.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.8% CAGR
Latest reported year was 16.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹41 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 11%✓ 13.9%
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 · 6 neutral · 1 weak

Market Cap

₹4,288 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.93x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹62.69

Profitable

Profitable on a per-share basis

ROE

14.9%

Moderate

Moderate capital efficiency

ROCE

13.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

16.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-37.9%

Falling

Profits are shrinking

Dividend Yield

0.50%

Modest

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

Free Cash Flow

₹41 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹994

P/E (Forward)

9.7x

Improving

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

Operating Margin

19.3%

Good

Healthy core-business profitability

Net Margin

10.3%

Good

Strong bottom-line conversion

Current Ratio

1.16

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.31

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1031.3 / 1104.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,169 Cr	₹1,894 Cr	₹2,514 Cr	₹2,495 Cr	+4.8%
EBITDA	₹679 Cr	₹480 Cr	₹715 Cr	₹569 Cr	-5.7%
EBITDA Margin	31.3%	25.3%	28.4%	22.8%	—
PAT (Net Profit)	₹353 Cr	₹196 Cr	₹358 Cr	₹332 Cr	-2.1%
EPS	₹85.03	₹47.14	₹84.68	₹76.95	-3.3%
ROE	33.0%	15.6%	18.8%	14.9%	—
ROCE	32.1%	17.5%	22.0%	13.9%	—
Total Debt	₹769 Cr	₹909 Cr	₹593 Cr	₹572 Cr	-9.4%
Free Cash Flow	₹210 Cr	-₹1 Cr	₹246 Cr	₹41 Cr	-41.8%

🟢 Revenue has grown at 4.8% a year over 3 years.

🔴 EBITDA has shrunk at 5.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 31.3% to 22.8% over 3 years (-8.5 pts).

🔴 PAT (Net Profit) has shrunk at 2.1% a year over 3 years.

🔴 EPS has shrunk at 3.3% a year over 3 years.

🔴 ROE has fallen from 33.0% to 14.9% over 3 years (-18.1 pts).

🔴 ROCE has fallen from 32.1% to 13.9% over 3 years (-18.2 pts).

🟢 Total Debt has shrunk at 9.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 41.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,505 Cr

Total Liabilities

₹1,284 Cr

Total Debt

₹572 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹436 Cr

Capex

-₹394 Cr

Shareholding (proxy)

Institutional Holding

6.2%

Insider Holding

68.9%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

01 Jun 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,728

+73.8% vs CMP

Target Range

₹1,456 – ₹2,000

Peer Comparison

Company	P/E	ROE
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

4 mixed1 negative1 general

Epigral (NSEI:EPIGRAL) Stock Forecast & Analyst Predictions

Simply Wall Street, 27 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

EPIGRAL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Stocks to buy: Nagaraj Shetti recommends Bajaj Auto, Epigral shares to buy in the short-term

Livemint, 23 Jul

Epigral Plans ₹600 Crore Dahej Expansion; Shares Fall 0.23%

HDFC Sky, 27 JulCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Epigral net profit falls 38% YoY as input costs rise

scanx.trade, 27 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Epigral - 13 stocks fall up to 45% in 3 months on FII stake cuts, weak earnings

The Economic Times, 23 MarResults

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

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong16.6/20

🔴GrowthWeak5.7/20

🟡ProfitabilityModerate8.2/15

🟡ValuationFair9.3/15

🟡RiskModerate5.2/10

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

This thesis breaks if

✓EBITDA margin holds above 21%22.8%
✓Revenue growth stays above 4% a year4.8% CAGR
✓Free cash flow remains positive₹41 Cr
✓Debt / EBITDA stays below 2x1.0x
✓ROCE stays above 11%13.9%