Galactico Corporate Services Limited

Consumer Defensive — Beverages - Non-Alcoholic · BSE

₹1.84+₹0.02 (+1.10%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:50 pm

Understanding the Business

Company site ↗

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

What does this company do?

Galactico Corporate Services Limited, together with its subsidiaries, manufactures and sells packaged drinking water in India.

IndustryBeverages - Non-Alcoholic

SectorConsumer Defensive

Employees14

Annual revenue₹24 Cr

How does it make money?

Turns over ₹24 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 14 employees supports ₹1.68 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.68 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSUMER PRODUCT LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.0% 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.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -32% while net margin moved -78% 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-32%

Margin effect-78%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 11.9% a year
✗ Profit has declined at 47.2% a year
✗ Profit fell 27.1% in the latest year

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

83/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

12.3x

3Y Median

17.3x

40 monthly readings · mean 17.2x · range 6.3x–34.3x

Sector Median

59.3x

median of 3 sector peers

🟢Current valuation is approximately 29% below its 3y median of 17.3x. 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 79% below the peer median of 59.3x.

vs. its own history

Cheap

17.3x median over 40 months · -29%

vs. sector peers

Cheap

59.3x median of 3 peers · -79%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 28.1% to 3.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.6% to 6.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 25.7 points, from 42.3% to 16.6%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.0x to 3.3x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 85% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 20% over 3 years — each existing share owns a smaller slice of the company.

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 79% 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 42.3% to 16.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 28.1% to 3.3%. 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 15%✓ 16.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 2 neutral · 4 weak

Market Cap

₹34 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.3x

Cheap

Cheap against the generic band

P/B Ratio

0.64x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.15

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

6.0%

Weak

Low return on total capital employed

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

25.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-27.1%

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

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.2%

Average

Average margins

Net Margin

8.4%

Average

Average bottom-line conversion

Current Ratio

3.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.61

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1.9 / 2.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹34 Cr	₹22 Cr	₹26 Cr	₹24 Cr	-11.9%
EBITDA	₹15 Cr	₹4 Cr	₹4 Cr	₹4 Cr	-35.4%
EBITDA Margin	42.3%	19.2%	16.8%	16.6%	—
PAT (Net Profit)	₹9 Cr	₹2 Cr	₹2 Cr	₹1 Cr	-47.2%
EPS	₹0.62	₹0.11	₹0.13	₹0.09	-47.1%
ROE	28.1%	5.2%	5.6%	3.3%	—
ROCE	34.6%	7.4%	7.0%	6.0%	—
Total Debt	₹6 Cr	₹24 Cr	₹15 Cr	₹7 Cr	+1.3%
Free Cash Flow	-₹8 Cr	-₹10 Cr	₹17 Cr	-₹6 Cr	—

🔴 Revenue has shrunk at 11.9% a year over 3 years.

🔴 EBITDA has shrunk at 35.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 42.3% to 16.6% over 3 years (-25.7 pts).

🔴 PAT (Net Profit) has shrunk at 47.2% a year over 3 years.

🔴 EPS has shrunk at 47.1% a year over 3 years.

🔴 ROE has fallen from 28.1% to 3.3% over 3 years (-24.8 pts).

🔴 ROCE has fallen from 34.6% to 6.0% over 3 years (-28.6 pts).

🟡 Total Debt has been broadly flat over 3 years (1.3% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹67 Cr

Total Liabilities

₹20 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

48.4%

Peer Comparison

Company	P/E	ROE
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

6 general

Galactico Corporate Services shareholders approve warrant issuance at AGM

scanx.trade, 12 Sept

REGENCY INVESTMENTS Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 16 Oct

Gretex Corporate Services Ltd. 52 Week High Streak Analysis

Univest, 14 Oct

Galactico Corporate Services Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Galactico Corporate Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 05 Feb

87 Best Penny Stocks Under 5 Rs In India For October 2026

Samco, 14 Oct

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑