Labelkraft Technologies Limited

Industrials — Business Equipment & Supplies · BSE

₹63.00₹0.00 (0.00%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by 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. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:04 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 Labelkraft Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Labelkraft Technologies Limited provides barcode solutions in India.

IndustryBusiness Equipment & Supplies

SectorIndustrials

Employees42

Annual revenue₹25 Cr

How does it make money?

Turns over ₹25 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 42 employees supports ₹59.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin9.5%

Net margin5.2%

Revenue / employee₹59.8 lakh

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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 13.3% 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.

ROCE13.3%

ROE10.3%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +87% while net margin moved +241% 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+87%

Margin effect+241%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.40 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

75/ 100

Good

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

Valuation

70/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

15.6x

3Y Median

18.2x

40 monthly readings · mean 24.7x · range 12.8x–48.8x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 14% below its 3y median of 18.2x. 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 82% below the peer median of 88.8x.

vs. its own history

Fair

18.2x median over 40 months · -14%

vs. sector peers

Cheap

88.8x median of 3 peers · -82%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.6x

P/B

1.53x

EV/EBITDA

9.0x

PEG

0.18

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Debt is being paid down
Total debt is down 39% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 2.1% to 9.8%.
Return on capital is rising
ROCE has improved from 3.5% to 13.3%.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 39% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 82% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

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 17% a year✓ 23.2% CAGR
Latest reported year was 47.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.3%
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

4 good · 6 neutral · 1 weak

Market Cap

₹20 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.6x

Fair

Fairly valued against the generic band

P/B Ratio

1.53x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.04

Profitable

Profitable on a per-share basis

ROE

10.3%

Moderate

Moderate capital efficiency

ROCE

13.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

47.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-4.2%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹63

ROA

7.5%

Average

Average asset productivity

Operating Margin

6.8%

Average

Average margins

Net Margin

5.2%

Average

Average bottom-line conversion

Current Ratio

3.51

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.40

Defensive

Steadier than the market

52W Range Position

83%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

62.9 / 62.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹18 Cr	₹21 Cr	₹25 Cr	+23.2%
EBITDA	₹1 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+28.9%
EBITDA Margin	8.3%	10.5%	10.9%	9.5%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+85.3%
EPS	₹1.64	₹3.46	₹3.82	—	—
ROE	2.1%	10.4%	10.3%	9.8%	—
ROCE	3.5%	14.6%	14.1%	13.3%	—
Total Debt	₹3 Cr	₹2 Cr	₹3 Cr	₹2 Cr	-15.2%
Free Cash Flow	-₹4 Cr	-₹1 Cr	-₹3 Cr	₹1 Cr	—

🟢 Revenue has grown at 23.2% a year over 3 years.

🟢 EBITDA has grown at 28.9% a year over 3 years.

🟢 EBITDA Margin has risen from 8.3% to 9.5% over 3 years (+1.2 pts).

🟢 PAT (Net Profit) has grown at 85.3% a year over 3 years.

🟢 ROE has risen from 2.1% to 9.8% over 3 years (+7.7 pts).

🟢 ROCE has risen from 3.5% to 13.3% over 3 years (+9.8 pts).

🟢 Total Debt has shrunk at 15.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹16 Cr

Total Liabilities

₹3 Cr

Total Debt

₹2 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.4%

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

6 general

LABELKRAFT TECHNOLOGIES LIMITE Share Price

Upstox, 06 Oct

Labelkraft Technologies Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 03 Sept

Labelkraft Technologies Ltd Share Price

Business Today, 01 Apr

Labelkraft Technologies Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

CNL Stock Price and Chart — NSE:CNL

TradingView, 10 Dec

Labelkraft Technologies Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 03 Sept

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟢Financial HealthStrong17.6/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate9.6/15

🟡ValuationFair9.3/15

🔴RiskHigh4.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 17% a year23.2% CAGR
✓EBITDA margin holds above 8%9.5%
✓Free cash flow remains positive₹1 Cr
✓Debt / EBITDA stays below 2x0.8x
✓ROCE stays above 10%13.3%