Innovative Tech Pack Limited

Consumer Cyclical — Packaging & Containers · BSE

₹13.20+₹0.31 (+2.40%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Innovative Tech Pack Limited engages in the manufacture and resale of plastic bottles, jars, containers, and pre-forms and caps in India.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees105

Annual revenue₹127 Cr

How does it make money?

Turns over ₹127 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 105 employees supports ₹1.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 12.6% 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 ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -20% while net margin moved -263% 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-20%

Margin effect-263%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 7.1% a year

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

54/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

4.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 47% over 3 years.
Cash generation is improving
Free cash flow is up 87% over 3 years.
Return on equity is rising
ROE has improved from -4.2% to 5.0%.
Return on capital is rising
ROCE has improved from 7.0% to 12.6%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🔴Inventory building faster than salesFinancial
Inventory up 47% against revenue up -20% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 47% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

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
2 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

1EBITDA margin holds above 7%✓ 8.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 3 neutral · 3 weak

Market Cap

₹30 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.80x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.11

Loss-making

Negative earnings per share — the business is losing money

ROE

5.0%

Weak

Weak capital efficiency

ROCE

12.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.53x

Low

Conservative leverage

Revenue Growth (YoY)

10.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

10417.1%

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

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.3%

Weak

Thin margins leave little room for error

Net Margin

-0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

14.2 / 14.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹158 Cr	₹142 Cr	₹134 Cr	₹127 Cr	-7.1%
EBITDA	₹13 Cr	₹14 Cr	₹15 Cr	₹11 Cr	-4.7%
EBITDA Margin	8.2%	9.6%	11.3%	8.8%	—
PAT (Net Profit)	-₹1 Cr	₹2 Cr	-₹0 Cr	₹2 Cr	—
EPS	₹-0.64	₹0.8	₹-0.01	₹0.83	—
ROE	-4.2%	5.0%	-0.1%	5.0%	—
ROCE	7.0%	11.8%	6.6%	12.6%	—
Total Debt	₹38 Cr	₹31 Cr	₹26 Cr	₹20 Cr	-19.0%
Free Cash Flow	₹6 Cr	₹13 Cr	₹5 Cr	₹11 Cr	+23.1%

🔴 Revenue has shrunk at 7.1% a year over 3 years.

🔴 EBITDA has shrunk at 4.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 8.8% over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹2 Cr.

🟢 EPS has turned positive, from ₹-0.64 to ₹0.83.

🟢 ROE has risen from -4.2% to 5.0% over 3 years (+9.2 pts).

🟢 ROCE has risen from 7.0% to 12.6% over 3 years (+5.6 pts).

🟢 Total Debt has shrunk at 19.0% a year over 3 years.

🟢 Free Cash Flow has grown at 23.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹86 Cr

Total Liabilities

₹49 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.6%

Corporate Actions

Ex-Dividend Date

20 Sept 2019

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive5 general

Innovative Tech Pack Ltd Upgraded to Sell on Technical Improvements Despite Weak Fundamentals

MarketsMojo, 15 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Top 15 Low-Price Stocks In India To Buy In October 2026

Samco, 17 Oct

Innovative Tech Pack (BSE: INNOVTEC): Bull Case vs Bear Case

Kalkine India, 10 Sept

Innovative Tech Pack Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Innovative Tech Pack returns to profit in FY26

scanx.trade, 29 May

Innovative Tech Pack Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

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

MiddlingBusiness Quality · Financial Health · Valuation

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑