Graphisads Limited

Sector n/a · NSE

₹53.40−₹2.15 (−3.87%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

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

How does it make money?

Turns over ₹141 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 6.3% 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.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 2 years revenue moved +111% while net margin moved -56% 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-56%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 4.4% is weak
✗ ROE has fallen by 8.9 points over the period

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

88/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

6.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 16% over 2 years.
Cash generation is improving
Free cash flow is up 783% over 2 years.
Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 13.3% to 4.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.5% to 6.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Inventory building faster than salesFinancial
Inventory up 652% against revenue up 111% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 16% over 2 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹11 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 13.3% to 4.4%. 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 34% a year✓ 45.2% CAGR
Set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 13.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

3 / 7 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)
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 7 neutral · 2 weak

Market Cap

₹98 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

4.4%

Weak

Weak capital efficiency

ROCE

6.3%

Weak

Low return on total capital employed

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

Not available

No data

Source didn't return this field

Dividend Yield

None

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

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

23.3%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.0%

Average

Average bottom-line conversion

Current Ratio

2.24

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

24.3 / 25.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.6

Neutral momentum

Financial Trend (3-Year)

Metric	FY22	FY23	FY26	2Y CAGR
Revenue	₹67 Cr	₹98 Cr	₹141 Cr	+45.2%
EBITDA	₹9 Cr	₹13 Cr	₹19 Cr	+43.5%
EBITDA Margin	13.8%	13.6%	13.4%	—
PAT (Net Profit)	₹5 Cr	₹6 Cr	₹4 Cr	-3.5%
EPS	₹2.51	₹3.05	—	—
ROE	13.3%	13.0%	4.4%	—
ROCE	14.5%	16.0%	6.3%	—
Total Debt	₹31 Cr	₹30 Cr	₹26 Cr	-8.6%
Free Cash Flow	₹1 Cr	-₹2 Cr	₹11 Cr	+197.2%

🟢 Revenue has grown at 45.2% a year over 2 years.

🟢 EBITDA has grown at 43.5% a year over 2 years.

🟡 EBITDA Margin has held roughly flat at 13.4% over 2 years.

🔴 PAT (Net Profit) has shrunk at 3.5% a year over 2 years.

🔴 ROE has fallen from 13.3% to 4.4% over 2 years (-8.9 pts).

🔴 ROCE has fallen from 14.5% to 6.3% over 2 years (-8.2 pts).

🟢 Total Debt has shrunk at 8.6% a year over 2 years.

🟢 Free Cash Flow has grown at 197.2% a year over 2 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹174 Cr

Total Liabilities

₹78 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹3 Cr

Recent News

6 general

Graphisads IPO to open on November 30; check price band, lot size, other details

Business Today, 28 Nov

Graphisads Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 18 Sept

IIM Lucknow, Graphisads launch 'G Force' accelerator for media startups

Business Standard, 16 Jul

Advertising Marketing Agencies Penny Stocks 2027: 5 Picks

Univest, 17 Sept

CHTR Stock Price and Chart — BSE:CHTR

TradingView, 03 Oct

Graphisads IPO GMP, Grey Market Premium Today

IPO Watch, 13 Dec

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
5 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Valuation · Risk

WeakBusiness Quality · Profitability

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

All 5 tripwires holding · see Key things to watch ↑