Fabtech Technologies Limited

Healthcare — Health Information Services · NSE

₹130.95−₹1.16 (−0.88%)

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: Reasonable but unspectacular business quality, 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, 6:09 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 Fabtech Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Fabtech Technologies Limited operates as a biopharma engineering company that provides aseptic manufacturing facilities internationally. The company offers designing, engineering, procurement, installation, and testing of pharmaceutical equipment.

IndustryHealth Information Services

SectorHealthcare

Employees186

Annual revenue₹409 Cr

How does it make money?

Turns over ₹409 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 186 employees supports ₹2.20 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin13.7%

Net margin9.4%

Revenue / employee₹2.20 Cr

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD, DR. REDDY S LABORATORIES, APOLLO HOSPITALS ENTER. L. These are the companies its valuation and returns are measured against elsewhere in this report.

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

CIPLA LTDP/E 31.8x · ROE 9.8%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

APOLLO HOSPITALS ENTER. LP/E 54.3x · ROE 22.0%

What is its competitive advantage?Little sign of one

Returns on capital of 11.8% 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.

ROCE11.8%

ROE9.1%

Peer median ROE14.5%

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 +111% while net margin moved -16% 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+111%

Margin effect-16%

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

58/ 100

Average

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

Valuation

84/ 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

10.6x

1.2Y Median

14.9x

14 monthly readings · mean 15.9x · range 13.0x–22.9x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 29% below its 1.2y median of 14.9x. 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 trades 68% below the peer median of 33.3x.

vs. its own history

Cheap

14.9x median over 14 months · -29%

vs. sector peers

Cheap

33.3x median of 4 peers · -68%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.6x

P/B

1.20x

EV/EBITDA

10.1x

PEG

0.51

Dividend Yield

0.46%

What's Good / What's Bad

🟢 What's Going Well3

Valuation below its historical average
At 10.6x the stock trades 29% below its own median of 14.9x.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 16.7% to 13.7% over 3 years.
Debt is rising
Total debt is up 96% 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 24.4% to 9.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 33.3% to 11.8% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 143% against revenue growth of 111% — customers are taking longer to pay.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 96% over 3 years, from ₹35 Cr to ₹70 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.0 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 143% against revenue up 111% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 29% 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 68% 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?

Margins are being competed away
EBITDA margin has fallen from 16.7% to 13.7%. 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 143% against revenue up 111%. 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 24.4% to 9.1%. 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

1Revenue growth stays above 21% a year✓ 28.3% CAGR
Latest reported year was 10.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 11.8%
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

₹582 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.6x

Cheap

Cheap against the generic band

P/B Ratio

1.20x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹12.33

Profitable

Profitable on a per-share basis

ROE

9.1%

Moderate

Moderate capital efficiency

ROCE

11.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

10.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-17.4%

Falling

Profits are shrinking

Dividend Yield

0.46%

Modest

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

Free Cash Flow

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹130.95

Operating Margin

3.9%

Weak

Thin margins leave little room for error

Net Margin

11.7%

Good

Strong bottom-line conversion

Current Ratio

2.29

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

141.3 / 144.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹194 Cr	₹226 Cr	₹322 Cr	₹409 Cr	+28.3%
EBITDA	₹32 Cr	₹39 Cr	₹45 Cr	₹56 Cr	+20.1%
EBITDA Margin	16.7%	17.4%	14.0%	13.7%	—
PAT (Net Profit)	₹22 Cr	₹27 Cr	₹46 Cr	₹38 Cr	+20.8%
EPS	—	—	₹10.45	₹10	—
ROE	24.4%	20.6%	26.8%	9.1%	—
ROCE	33.3%	28.0%	30.9%	11.8%	—
Total Debt	₹35 Cr	₹13 Cr	₹84 Cr	₹70 Cr	+25.2%
Free Cash Flow	-₹14 Cr	₹59 Cr	-₹61 Cr	-₹4 Cr	—

🟢 Revenue has grown at 28.3% a year over 3 years.

🟢 EBITDA has grown at 20.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.7% to 13.7% over 3 years (-3.0 pts).

🟢 PAT (Net Profit) has grown at 20.8% a year over 3 years.

🔴 ROE has fallen from 24.4% to 9.1% over 3 years (-15.3 pts).

🔴 ROCE has fallen from 33.3% to 11.8% over 3 years (-21.5 pts).

🔴 Total Debt has grown at 25.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹691 Cr

Total Liabilities

₹271 Cr

Total Debt

₹70 Cr

Cash & Equivalents

₹87 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

1.2%

Insider Holding

72.0%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

17 Aug 2026

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

1 positive1 mixed4 general

FABTECH TECHNOLOGIES (FABTECH) Share Price Rises 9.59% Today

Univest, 13 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.

Fabtech Technologies Ltd Dividend History, Yield & Record Date

INDmoney, 26 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

FABTECH TECHNOLOGIES LTD Share Price

Upstox, 05 May

Fabtech Technologies Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Fabtech Technologies (NSEI:FABTECH) - Stock Analysis

Simply Wall Street, 18 Nov

Fabtech Technologies confirms no encumbrance on promoter shares in FY26

scanx.trade, 15 Jun

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟢Financial HealthStrong13/20

🟡GrowthModest12.9/20

🟡ProfitabilityModerate6.9/15

🟢ValuationAttractive13.2/15

🔴RiskHigh2.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 21% a year28.3% CAGR
✓EBITDA margin holds above 12%13.7%
✗Free cash flow remains positive-₹4 Cr
✓Debt / EBITDA stays below 2x1.2x
✓ROCE stays above 9%11.8%