Gabriel PET Straps Limited

Industrials — Tools & Accessories · BSE

₹77.50−₹2.54 (−3.17%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gabriel PET Straps Limited manufactures and sells polyester (PET) straps in India. The company also provides PET straps, PP straps, strapping tools, manual tools, sealing tools, PET strap clips, pneumatic tools, and battery-operated tools.

IndustryTools & Accessories

SectorIndustrials

Employees10

Annual revenue₹183 Cr

How does it make money?

Turns over ₹183 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 10 employees supports ₹18.29 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹18.29 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.9% 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 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 +1119% while net margin moved -38% 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+1119%

Margin effect-38%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 4.9% is below 10% — capital is not working hard
✗ ROCE has fallen by 23.0 points — returns are eroding
✗ EBITDA margin of 3.4% is thin — little cushion if costs rise
✗ Net margin of 2.1% is slim
• Revenue has compounded at 130.1% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

47/ 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

15.0x

3Y Median

71.1x

34 monthly readings · mean 65.2x · range 10.3x–120.5x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 79% below its 3y median of 71.1x. 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 83% below the peer median of 88.8x.

vs. its own history

Cheap

71.1x median over 34 months · -79%

vs. sector peers

Cheap

88.8x median of 3 peers · -83%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.8x

PEG

0.16

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 20.8% to 3.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.9% to 4.9% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 89% over 3 years, from ₹3 Cr to ₹6 Cr.
🔴High leverageFinancial
Debt/Equity of 5.01x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.2 points, from 11.6% to 3.4%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 183% 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 79% 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 83% 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 11.6% to 3.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.01x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 20.8% to 3.5%. 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.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 98% a year✓ 130.1% CAGR
Latest reported year was 405.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹40 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 4.9%
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 · 2 neutral · 4 weak

Market Cap

₹58 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.0x

Cheap

Cheap against the generic band

P/B Ratio

0.52x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.17

Profitable

Profitable on a per-share basis

ROE

4.8%

Weak

Weak capital efficiency

ROCE

4.9%

Weak

Low return on total capital employed

Debt/Equity

5.01x

High

High leverage

Revenue Growth (YoY)

405.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹43 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

2.7%

Weak

Assets generate little profit

Operating Margin

1.3%

Weak

Thin margins leave little room for error

Net Margin

2.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

6.59

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.19

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

75.6 / 71.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

63.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹11 Cr	₹31 Cr	₹183 Cr	+130.1%
EBITDA	₹2 Cr	₹1 Cr	₹3 Cr	₹6 Cr	+53.1%
EBITDA Margin	11.6%	13.4%	9.1%	3.4%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹4 Cr	+96.1%
EPS	₹1.96	₹2.46	₹2.78	₹6.96	+52.5%
ROE	20.8%	6.2%	3.1%	3.5%	—
ROCE	27.9%	6.9%	4.6%	4.9%	—
Total Debt	₹3 Cr	₹3 Cr	₹1 Cr	₹6 Cr	+23.7%
Free Cash Flow	—	-₹11 Cr	-₹31 Cr	-₹40 Cr	—

🟢 Revenue has grown at 130.1% a year over 3 years.

🟢 EBITDA has grown at 53.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.6% to 3.4% over 3 years (-8.2 pts).

🟢 PAT (Net Profit) has grown at 96.1% a year over 3 years.

🟢 EPS has grown at 52.5% a year over 3 years.

🔴 ROE has fallen from 20.8% to 3.5% over 3 years (-17.3 pts).

🔴 ROCE has fallen from 27.9% to 4.9% over 3 years (-23.0 pts).

🔴 Total Debt has grown at 23.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹135 Cr

Total Liabilities

₹23 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹38 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

46.5%

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 mixed5 general

Gabriel Pet Straps board to meet on May 30 to consider FY26 results

scanx.trade, 26 MayResults

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

Gabriel PET Straps (BSE:544108) - Stock Analysis

Simply Wall Street, 08 Feb

Gabriel Pet Straps lists with 13.8% premium over IPO price on BSE SME

Moneycontrol.com, 07 Feb

Gabriel Pet Straps IPO GMP, Grey Market Premium Today

IPO Watch, 25 Jan

Gabriel Pet Straps shareholders unanimously approve FY26 accounts, director reappointment

scanx.trade, 01 Oct

Market buzz next week: Complete list of IPOs and fresh listings

Upstox, 13 Jan

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.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingFinancial Health

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

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. 5 high-severity red flags sit 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 ↑