Fabtech Cleanrooms Limited

Industrials — Building Products & Equipment · BSE

₹485.00+₹7.65 (+1.60%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Fabtech Cleanrooms Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Fabtech Cleanrooms Limited engages in the manufacture of pre-engineered and pre-fabricated modular panels and doors for building cleanrooms in India and internationally.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees167

Annual revenue₹219 Cr

How does it make money?

Turns over ₹219 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 167 employees supports ₹1.31 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin10.4%

Net margin7.2%

Revenue / employee₹1.31 Cr

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?Some evidence

ROCE of 19.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.1%

ROE17.0%

Peer median ROE15.2%

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 +76% while net margin moved +13% 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+76%

Margin effect+13%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ 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

45/ 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

37.8x

2Y Median

30.1x

23 monthly readings · mean 41.7x · range 15.6x–98.1x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 26% above its 2y median of 30.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 57% below the peer median of 88.8x.

vs. its own history

Expensive

30.1x median over 23 months · +26%

vs. sector peers

Cheap

88.8x median of 3 peers · -57%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

37.8x

P/B

5.76x

EV/EBITDA

27.1x

PEG

1.47

Dividend Yield

0.82%

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Debt is rising
Total debt is up 241% 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 capital is falling
ROCE has declined from 26.6% to 19.1% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 137% against revenue growth of 76% — stock may not be moving.
Valuation above its historical average
At 37.8x the stock trades 26% above its own median of 30.1x.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 241% over 3 years, from ₹6 Cr to ₹19 Cr.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 137% against revenue up 76% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹27 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.1% 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.
Cheaper than its peers
It trades 57% 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?

The price already assumes success
The stock trades 26% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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
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 16% a year✓ 20.7% CAGR
Latest reported year was 62.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹27 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹597 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

37.8x

Fair

Fairly valued against the generic band

P/B Ratio

5.76x

Rich

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

EPS (TTM)

₹12.84

Profitable

Profitable on a per-share basis

ROE

17.0%

Strong

Strong capital efficiency

ROCE

19.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

62.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

33.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.82%

Modest

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

Free Cash Flow

-₹27 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹485

ROA

7.9%

Average

Average asset productivity

Operating Margin

10.6%

Average

Average margins

Net Margin

7.2%

Average

Average bottom-line conversion

Current Ratio

2.15

Comfortable

Healthy short-term liquidity

52W Range Position

76%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

498.3 / 450.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

41.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹125 Cr	₹97 Cr	₹150 Cr	₹219 Cr	+20.7%
EBITDA	₹13 Cr	₹9 Cr	₹17 Cr	₹23 Cr	+19.7%
EBITDA Margin	10.6%	9.2%	11.2%	10.4%	—
PAT (Net Profit)	₹8 Cr	₹6 Cr	₹13 Cr	₹16 Cr	+25.7%
EPS	₹6.46	₹4.52	₹13.64	—	—
ROE	17.5%	10.8%	14.1%	15.3%	—
ROCE	26.6%	15.5%	16.9%	19.1%	—
Total Debt	₹6 Cr	₹6 Cr	₹1 Cr	₹19 Cr	+50.6%
Free Cash Flow	₹8 Cr	₹1 Cr	-₹1 Cr	-₹27 Cr	—

🟢 Revenue has grown at 20.7% a year over 3 years.

🟢 EBITDA has grown at 19.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 10.4% over 3 years.

🟢 PAT (Net Profit) has grown at 25.7% a year over 3 years.

🔴 ROE has fallen from 17.5% to 15.3% over 3 years (-2.2 pts).

🔴 ROCE has fallen from 26.6% to 19.1% over 3 years (-7.6 pts).

🔴 Total Debt has grown at 50.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹8 Cr to -₹27 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹186 Cr

Total Liabilities

₹78 Cr

Total Debt

₹19 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹17 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

6.0%

Insider Holding

73.5%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

16 May 2025

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

1 positive1 mixed4 general

Fabtech Cleanrooms submits auditor certificate for warrant allotment

scanx.trade, 15 Oct

Fabtech Technologies Share Price Forecast: 3 Year Outlook to 2030

Univest, 17 Jul

Fabtech Cleanrooms Ltd Q1 Results

Livemint, 02 SeptResults

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

Fabtech Cleanrooms books ₹35.60 crore in new orders for September 2026

scanx.trade, 10 OctOrder 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.

Fabtech Technologies Cleanrooms Limited Expands into UAE with New Subsidiary for Partition Manufacturing

Business Standard, 22 Dec

Fabtech Cleanrooms sets Aug 17 EGM for ₹15 crore warrant issue

scanx.trade, 15 Jul

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak8.8/20

🟢Financial HealthStrong13/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong10.2/15

🔴ValuationDemanding4.5/15

🔴RiskHigh2.5/10

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

This thesis breaks if

✓Revenue growth stays above 16% a year20.7% CAGR
✓EBITDA margin holds above 8%10.4%
✗Free cash flow remains positive-₹27 Cr
✓Debt / EBITDA stays below 2x0.8x
✓ROCE stays above 16%19.1%