Euro Panel Products Limited

Industrials — Building Products & Equipment · NSE

₹141.70−₹0.43 (−0.30%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

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, 6:10 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 Euro Panel Products Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Euro Panel Products Limited engages in the manufacture and supply of aluminum composite panels (ACP) in India and Europe.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees628

Annual revenue₹503 Cr

How does it make money?

Turns over ₹503 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 628 employees supports ₹80.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin11.0%

Net margin5.3%

Revenue / employee₹80.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 16.6% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE25.4%

ROE16.6%

Peer median ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +53% while net margin moved +73% 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+53%

Margin effect+73%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.01x is on the heavy side
• Current ratio of 1.41 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
• Interest cover of 4.1x is adequate
✗ Debt has grown 43.3% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

81/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.5x

3Y Median

30.7x

40 monthly readings · mean 30.5x · range 12.6x–49.6x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 56% below its 3y median of 30.7x. 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 trades 85% below the peer median of 88.8x.

vs. its own history

Cheap

30.7x median over 40 months · -56%

vs. sector peers

Cheap

88.8x median of 3 peers · -85%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

13.5x

P/B

2.17x

EV/EBITDA

9.1x

PEG

0.36

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 7.5% to 11.0% over 3 years.
Return on equity is rising
ROE has improved from 10.0% to 16.6%.
Return on capital is rising
ROCE has improved from 17.9% to 25.4%.
High return on capital employed
ROCE of 25.4% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 13.5x the stock trades 56% below its own median of 30.7x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 194% 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

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 194% over 3 years, from ₹55 Cr to ₹161 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.4% 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 7.5% to 11.0%. 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 56% 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.
Cheaper than its peers
It trades 85% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

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
3 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✓ 15.2% CAGR
Latest reported year was 14.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.0%
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.
4Free cash flow remains positive✗ -₹23 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 22%✓ 25.4%
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

5 good · 4 neutral · 2 weak

Market Cap

₹347 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.5x

Cheap

Cheap against the generic band

P/B Ratio

2.17x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.46

Profitable

Profitable on a per-share basis

ROE

16.6%

Strong

Strong capital efficiency

ROCE

25.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.01x

Moderate

Moderate leverage

Revenue Growth (YoY)

14.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-16.7%

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

-₹23 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹141.7

Operating Margin

8.5%

Average

Average margins

Net Margin

4.9%

Average

Average bottom-line conversion

Current Ratio

1.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

144.7 / 150.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹329 Cr	₹395 Cr	₹423 Cr	₹503 Cr	+15.2%
EBITDA	₹25 Cr	₹33 Cr	₹42 Cr	₹56 Cr	+31.2%
EBITDA Margin	7.5%	8.4%	10.0%	11.0%	—
PAT (Net Profit)	₹10 Cr	₹15 Cr	₹18 Cr	₹27 Cr	+38.1%
EPS	₹4.11	₹5.96	₹7.52	₹10.84	+38.2%
ROE	10.0%	12.7%	13.8%	16.6%	—
ROCE	17.9%	21.0%	22.8%	25.4%	—
Total Debt	₹55 Cr	₹92 Cr	₹116 Cr	₹161 Cr	+43.3%
Free Cash Flow	₹10 Cr	-₹27 Cr	-₹12 Cr	-₹23 Cr	—

🟢 Revenue has grown at 15.2% a year over 3 years.

🟢 EBITDA has grown at 31.2% a year over 3 years.

🟢 EBITDA Margin has risen from 7.5% to 11.0% over 3 years (+3.6 pts).

🟢 PAT (Net Profit) has grown at 38.1% a year over 3 years.

🟢 EPS has grown at 38.2% a year over 3 years.

🟢 ROE has risen from 10.0% to 16.6% over 3 years (+6.6 pts).

🟢 ROCE has risen from 17.9% to 25.4% over 3 years (+7.5 pts).

🔴 Total Debt has grown at 43.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹10 Cr to -₹23 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹388 Cr

Total Liabilities

₹227 Cr

Total Debt

₹161 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹20 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.7%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 mixed4 general

Euro Panel Products (EUROBOND.NS) Edges Higher: Shares Gain 1.56% to ₹142.0 - Initial Balance

https://www.siam.in/, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Euro Panel Products Share Price Forecast: 3 Year Outlook to 2030

Univest, 17 Jul

Euro Panel Products Ltd is Rated Strong Sell

MarketsMojo, 14 Oct

Euro Panel Products Ltd leads losers in 'B' group

Business Standard, 22 Sept

Euro Panel Products board approves cost audit report for FY26

scanx.trade, 24 Sept

Euro Panel Products EUROBOND Reg 74(5) Certificate Q2 FY27

Kalkine India, 09 OctResults

🟡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 QualityAdequate12.4/20

🔴Financial HealthStretched8.7/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong9.8/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 11% a year15.2% CAGR
✓EBITDA margin holds above 9%11.0%
✗Debt / EBITDA stays below 2x2.9x
✗Free cash flow remains positive-₹23 Cr
✓ROCE stays above 22%25.4%