Naperol Investments Limited

Basic Materials — Chemicals · BSE

₹552.50−₹2.20 (−0.40%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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. Cash generation is currently 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 Naperol Investments Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Naperol Investments Limited engages in investment and leasing businesses in India and internationally. The company operates in two segments, Investment and Trading. It is also involved in trading of chemicals.

IndustryChemicals

SectorBasic Materials

Employees5

Annual revenue₹27 Cr

How does it make money?

Turns over ₹27 Cr a year. Of every ₹100 of sales, about ₹40 reaches shareholders as profit, with ₹42 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹5.34 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.34 Cr

Who are its competitors?

The closest listed comparisons in its industry are 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?Little sign of one

Returns on capital of 1.2% 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 ROE15.4%

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 +1311% while net margin moved -100% 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+1311%

Margin effect-100%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.45 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

47/ 100

Fair

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

29.4x

3Y Median

2.2x

40 monthly readings · mean 15.9x · range 1.2x–51.4x

Sector Median

33.8x

median of 3 sector peers

⚠️Current valuation is approximately 1261% above its 3y median of 2.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 33.8x.

vs. its own history

Expensive

2.2x median over 40 months · +1261%

vs. sector peers

Fair

33.8x median of 3 peers · -13%

vs. generic bands

Fair

15x–35x

EV/EBITDA

28.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from -19908.5% to 41.7% over 3 years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 67.3% to 1.2% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 1 high · 2 watch

🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹9 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 97% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -19908.5% to 41.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 1261% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 67.3% to 1.2%. 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.

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

1Revenue growth stays above 106% a year✓ 141.6% CAGR
Latest reported year was 192.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 40%✓ 41.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 1.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 2.2x✗ 29.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

₹318 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.35x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹18.79

Profitable

Profitable on a per-share basis

ROE

1.2%

Weak

Weak capital efficiency

ROCE

1.2%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

192.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

146.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.53%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

1.9%

Weak

Thin margins leave little room for error

Net Margin

32.8%

Good

Strong bottom-line conversion

Current Ratio

8.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

606.0 / 647.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

1.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹2 Cr	₹20 Cr	₹27 Cr	+141.6%
EBITDA	-₹377 Cr	-₹1 Cr	₹11 Cr	₹11 Cr	—
EBITDA Margin	-19908.5%	-32.4%	57.0%	41.7%	—
PAT (Net Profit)	₹375 Cr	-₹0 Cr	₹11 Cr	₹11 Cr	-69.5%
EPS	₹652.95	₹-0.64	₹18.36	₹18.6	-69.5%
ROE	67.3%	-0.0%	0.9%	1.2%	—
ROCE	-0.0%	-0.1%	0.9%	1.2%	—
Free Cash Flow	₹1 Cr	₹1 Cr	-₹3 Cr	-₹9 Cr	—

🟢 Revenue has grown at 141.6% a year over 3 years.

🟢 EBITDA has turned positive, from -₹377 Cr to ₹11 Cr.

🟢 EBITDA Margin has risen from -19908.5% to 41.7% over 3 years (+19950.3 pts).

🔴 PAT (Net Profit) has shrunk at 69.5% a year over 3 years.

🔴 EPS has shrunk at 69.5% a year over 3 years.

🔴 ROE has fallen from 67.3% to 1.2% over 3 years (-66.2 pts).

🟢 ROCE has risen from -0.0% to 1.2% over 3 years (+1.3 pts).

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹9 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹920 Cr

Total Liabilities

₹3 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.0%

Corporate Actions

Dividend Rate

₹19.48

Ex-Dividend Date

09 Sept 2026

Peer Comparison

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

Recent News

3 positive1 mixed2 general

Naperol Investments Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Naperol Investments Reports FY26 Net Profit of ₹1,068.91 Lakhs, Recommends Dividend

scanx.trade, 01 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Dividend, bonus, stock-split: These 12 stocks to remain in focus next week

Business Standard, 27 FebCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

5 Stocks to Watch Out for Upcoming Dividends in March 2026

Equitymaster, 26 Feb

Naperol Investments net profit surges 136% in Q1FY27 on trading surge

scanx.trade, 03 AugResults

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

Naperol Investments declares 72nd AGM voting results; all resolutions pass

scanx.trade, 16 SeptResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality

MiddlingFinancial Health · Growth · Profitability · Valuation

WeakRisk

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.

3 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8%; Valuation vs its own median of 2.2x · see Key things to watch ↑