Euro Pratik Sales Limited

Basic Materials — Building Materials · NSE

₹193.36+₹32.22 (+20.00%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

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, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 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 Euro Pratik Sales Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Euro Pratik Sales Limited sells and markets decorative wall panels and laminates. It offers wall panels, translucent panels and highlighters, adhesives, interior films, and designer laminates. The company was founded in 2003 and is based in Mumbai, India.

IndustryBuilding Materials

SectorBasic Materials

Employees57

Annual revenue₹335 Cr

How does it make money?

Turns over ₹335 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 57 employees supports ₹5.88 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin36.1%

Net margin23.0%

Revenue / employee₹5.88 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

GRASIM INDUSTRIES LTDP/E 34.8x · ROE 5.5%

AMBUJA CEMENTS LTDP/E 20.4x · ROE 7.4%

SHREE CEMENT LIMITEDP/E 49.7x · ROE 7.0%

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

ROCE has stayed above 15% in every year available and stands at 32.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.9% against a peer median of 7.4% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE32.0%

ROE24.9%

Peer median ROE7.4%

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 +27% while net margin moved +2% 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+27%

Margin effect+2%

DalalBaazaar Score

63/ 100

Good

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 been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

60/ 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

22.9x

1.3Y Median

34.4x

15 monthly readings · mean 34.3x · range 24.3x–45.9x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 33% below its 1.3y median of 34.4x. 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 37% below the peer median of 36.2x.

vs. its own history

Cheap

34.4x median over 15 months · -33%

vs. sector peers

Cheap

36.2x median of 4 peers · -37%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

22.9x

P/B

6.39x

EV/EBITDA

16.4x

PEG

2.55

Dividend Yield

0.21%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 31.6% to 36.1% over 3 years.
High return on capital employed
ROCE of 32.0% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 22.9x the stock trades 33% below its own median of 34.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Debt is rising
Total debt is up 39% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 45.8% to 24.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 56.2% to 32.0% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 61% against revenue growth of 27% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 216% against revenue growth of 27% — stock may not be moving.

Red Flags

5 items require attention · 2 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 7.64x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 216% against revenue up 27% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 39% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹14 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 61% against revenue up 27% — 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 32.0% 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 31.6% to 36.1%. 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 33% 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 37% 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?

Leverage amplifies any setback
Debt/Equity of 7.64x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 61% against revenue up 27%. 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 45.8% to 24.9%. 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.
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

1EBITDA margin holds above 34%✓ 36.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 6% a year✓ 8.3% CAGR
Latest reported year was 60.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 29%✓ 32.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 3 neutral · 3 weak

Market Cap

₹1,976 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.9x

Fair

Fairly valued against the generic band

P/B Ratio

6.39x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹8.44

Profitable

Profitable on a per-share basis

ROE

24.9%

Strong

Strong capital efficiency

ROCE

32.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

7.64x

High

High leverage

Revenue Growth (YoY)

60.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

93.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.21%

Modest

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

Free Cash Flow

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹193.36

Operating Margin

24.2%

Good

Healthy core-business profitability

Net Margin

23.1%

Good

Strong bottom-line conversion

Current Ratio

4.76

Comfortable

Healthy short-term liquidity

52W Range Position

15%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

192.5 / 238.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹264 Cr	₹222 Cr	₹284 Cr	₹335 Cr	+8.3%
EBITDA	₹83 Cr	₹85 Cr	₹105 Cr	₹121 Cr	+13.2%
EBITDA Margin	31.6%	38.6%	36.8%	36.1%	—
PAT (Net Profit)	₹60 Cr	₹63 Cr	₹76 Cr	₹77 Cr	+9.0%
EPS	₹5.83	₹6.16	₹7.43	₹7.54	+9.0%
ROE	45.8%	40.4%	32.4%	24.9%	—
ROCE	56.2%	50.7%	41.5%	32.0%	—
Total Debt	₹18 Cr	₹13 Cr	₹19 Cr	₹24 Cr	+11.5%
Free Cash Flow	₹45 Cr	₹74 Cr	-₹33 Cr	-₹14 Cr	—

🟢 Revenue has grown at 8.3% a year over 3 years.

🟢 EBITDA has grown at 13.2% a year over 3 years.

🟢 EBITDA Margin has risen from 31.6% to 36.1% over 3 years (+4.5 pts).

🟢 PAT (Net Profit) has grown at 9.0% a year over 3 years.

🟢 EPS has grown at 9.0% a year over 3 years.

🔴 ROE has fallen from 45.8% to 24.9% over 3 years (-20.9 pts).

🔴 ROCE has fallen from 56.2% to 32.0% over 3 years (-24.2 pts).

🔴 Total Debt has grown at 11.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹45 Cr to -₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹397 Cr

Total Liabilities

₹76 Cr

Total Debt

₹24 Cr

Cash & Equivalents

₹16 Cr

Operating Cash Flow

₹41 Cr

Capex

-₹55 Cr

Shareholding (proxy)

Institutional Holding

1.0%

Insider Holding

86.0%

Corporate Actions

Dividend Rate

₹0.4

Ex-Dividend Date

27 Mar 2026

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

2 mixed4 general

Euro Pratik promoters raise stake to 72.72% via open market

scanx.trade, 15 Oct

EURO PRATIK SALES Upper Circuit Today: Price, Data and Peers

Univest, 16 Oct

Price Band Hitters on October 16, 2026, at 3:30 PM IST: Euro Pratik Sales Leads The List

HDFC Sky, 16 Oct

Euro Pratik Sales Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

EURO PRATIK SALES LIMITED (EUROPRATIK) Share Price rises 11.17% as stock trades at Rs 178.65

Univest, 16 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 Pratik Sales to acquire 56% controlling stake in Fab Wood

Business Standard, 23 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong15.2/20

🟡Financial HealthAdequate10.6/20

🟢GrowthStrong13.4/20

🟢ProfitabilityStrong11/15

🟡ValuationFair9.1/15

🔴RiskHigh3.9/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 34%36.1%
✗Free cash flow remains positive-₹14 Cr
✓Revenue growth stays above 6% a year8.3% CAGR
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 29%32.0%