Malpani Pipes and Fittings Limited

Basic Materials — Specialty Chemicals · BSE

₹60.00−₹0.50 (−0.83%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Malpani Pipes and Fittings Limited manufactures and supplies high-grade plastic pipes in India. It offers high-density polyethylene (HDPE) pipes, medium-density polyethylene (MDPE) pipes, and linear low-density polyethylene (LLDPE) pipes under the Volstar brand name.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees87

Annual revenue₹161 Cr

How does it make money?

Turns over ₹161 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 87 employees supports ₹1.85 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.85 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.6% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +96% while net margin moved +122% 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+96%

Margin effect+122%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ 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

65/ 100

Good

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

Valuation

81/ 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

7.2x

2Y Median

7.6x

22 monthly readings · mean 7.9x · range 5.9x–11.4x

Sector Median

40.4x

median of 4 sector peers

🟡Currently trading close to its 2y median of 7.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 82% below the peer median of 40.4x.

vs. its own history

Fair

7.6x median over 22 months · -6%

vs. sector peers

Cheap

40.4x median of 4 peers · -82%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.1x

PEG

0.11

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 5.4% to 10.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 23.1% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 35.7% to 16.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.5% to 23.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Receivables growing faster than salesFinancial
Receivables up 625% against revenue up 96% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 162% against revenue up 96% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 5.4% to 10.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 ₹11 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?

Sales are being booked faster than collected
Receivables are up 625% against revenue up 96%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 35.7% to 16.2%. 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.
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

1Revenue growth stays above 19% a year✓ 25.1% CAGR
Latest reported year was 12.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 23.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

8 good · 2 neutral · 1 weak

Market Cap

₹65 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.2x

Cheap

Cheap against the generic band

P/B Ratio

1.16x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.38

Profitable

Profitable on a per-share basis

ROE

17.6%

Strong

Strong capital efficiency

ROCE

23.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.40x

Low

Conservative leverage

Revenue Growth (YoY)

12.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-10.4%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

8.4%

Good

Assets are working hard

Operating Margin

10.2%

Average

Average margins

Net Margin

5.5%

Average

Average bottom-line conversion

Current Ratio

1.77

Comfortable

Healthy short-term liquidity

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

61.7 / 62.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹82 Cr	₹141 Cr	₹140 Cr	₹161 Cr	+25.1%
EBITDA	₹4 Cr	₹13 Cr	₹15 Cr	₹17 Cr	+56.4%
EBITDA Margin	5.4%	9.4%	10.8%	10.5%	—
PAT (Net Profit)	₹2 Cr	₹7 Cr	₹8 Cr	₹9 Cr	+63.1%
EPS	₹1.93	₹6.83	₹9.68	—	—
ROE	35.7%	49.6%	17.3%	16.2%	—
ROCE	26.5%	46.8%	24.1%	23.1%	—
Total Debt	₹20 Cr	₹30 Cr	₹30 Cr	₹22 Cr	+4.2%
Free Cash Flow	-₹7 Cr	-₹12 Cr	-₹20 Cr	₹11 Cr	—

🟢 Revenue has grown at 25.1% a year over 3 years.

🟢 EBITDA has grown at 56.4% a year over 3 years.

🟢 EBITDA Margin has risen from 5.4% to 10.5% over 3 years (+5.1 pts).

🟢 PAT (Net Profit) has grown at 63.1% a year over 3 years.

🔴 ROE has fallen from 35.7% to 16.2% over 3 years (-19.4 pts).

🔴 ROCE has fallen from 26.5% to 23.1% over 3 years (-3.4 pts).

🔴 Total Debt has grown at 4.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹122 Cr

Total Liabilities

₹66 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹16 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

78.9%

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive5 general

MALPANI PIPES AND FITTINGS LIM Share Price

Upstox, 05 May

BHAVIK ENTERPRISES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

Malpani Pipes changes secretarial auditor name to Prasad and Partners

scanx.trade, 24 Sept

Malpani Pipes FY26 Results: Revenue up 15.6%, net profit rises 11.9%

scanx.trade, 04 SeptResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Upcoming IPO: Malpani Pipes IPO opens on January 29; issue price band set at ₹85-90 apiece; check GMP

Livemint, 28 Jan

Malpani Pipes sets Sept 29 AGM; seeks reappointment of Mohit Malpani

scanx.trade, 01 Sept

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

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. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑