Pyramid Technoplast Limited

Consumer Cyclical — Packaging & Containers · NSE

₹151.10−₹1.25 (−0.82%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, 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, 6:51 pm

Understanding the Business

Company site ↗

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

What does this company do?

Pyramid Technoplast Limited, an industrial packaging company, engages in the manufacture and marketing of polymer-based molded products for chemical, agrochemical, specialty chemical, and pharmaceutical companies for their packaging applications in India.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees594

Annual revenue₹681 Cr

How does it make money?

Turns over ₹681 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 594 employees supports ₹1.15 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.15 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 12.7% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +42% while net margin moved -36% 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+42%

Margin effect-36%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROCE of 12.7% is adequate but not distinctive
✗ ROCE has fallen by 22.9 points — returns are eroding
✗ EBITDA margin of 8.6% is thin — little cushion if costs rise
✗ Net margin of 4.2% is slim
• Revenue has compounded at 12.4% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

44/ 100

Weak

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.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

17.5x

3Y Median

20.8x

40 monthly readings · mean 21.0x · range 16.1x–25.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 16% below its 3y median of 20.8x. 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 75% below the peer median of 69.2x.

vs. its own history

Fair

20.8x median over 40 months · -16%

vs. sector peers

Cheap

69.2x median of 4 peers · -75%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.7x

PEG

0.55

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 29.6% to 10.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 35.6% to 12.7% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 230% over 3 years, from ₹56 Cr to ₹184 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 135% against revenue up 42% — stock may not be moving.
🟡Margins are compressingFinancial
EBITDA margin is down 2.2 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 86% against revenue up 42% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 75% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 10.8% to 8.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 86% against revenue up 42%. 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 29.6% to 10.4%. 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 9% a year✓ 12.4% CAGR
Latest reported year was 35.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹118 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 10%✓ 12.7%
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

3 good · 7 neutral · 1 weak

Market Cap

₹557 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.5x

Fair

Fairly valued against the generic band

P/B Ratio

1.95x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.62

Profitable

Profitable on a per-share basis

ROE

10.4%

Moderate

Moderate capital efficiency

ROCE

12.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.66x

Moderate

Moderate leverage

Revenue Growth (YoY)

35.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

31.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.33%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹118 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.4%

Average

Average margins

Net Margin

4.2%

Average

Average bottom-line conversion

Current Ratio

1.73

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

155.5 / 158.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹480 Cr	₹532 Cr	₹591 Cr	₹681 Cr	+12.4%
EBITDA	₹52 Cr	₹48 Cr	₹46 Cr	₹58 Cr	+4.0%
EBITDA Margin	10.8%	9.1%	7.8%	8.6%	—
PAT (Net Profit)	₹32 Cr	₹29 Cr	₹27 Cr	₹29 Cr	-3.2%
EPS	₹8.63	₹8.51	₹7.25	₹7.83	-3.2%
ROE	29.6%	13.2%	10.7%	10.4%	—
ROCE	35.6%	18.0%	13.3%	12.7%	—
Total Debt	₹56 Cr	₹20 Cr	₹55 Cr	₹184 Cr	+48.8%
Free Cash Flow	₹17 Cr	-₹48 Cr	-₹34 Cr	-₹118 Cr	—

🟢 Revenue has grown at 12.4% a year over 3 years.

🟢 EBITDA has grown at 4.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.8% to 8.6% over 3 years (-2.2 pts).

🔴 PAT (Net Profit) has shrunk at 3.2% a year over 3 years.

🔴 EPS has shrunk at 3.2% a year over 3 years.

🔴 ROE has fallen from 29.6% to 10.4% over 3 years (-19.2 pts).

🔴 ROCE has fallen from 35.6% to 12.7% over 3 years (-22.9 pts).

🔴 Total Debt has grown at 48.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹17 Cr to -₹118 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹527 Cr

Total Liabilities

₹251 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹41 Cr

Capex

-₹76 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.8%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

11 Sept 2026

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 positive3 mixed2 general

Pyramid Technoplast Kutch Expansion; Shares Fall 1.25%

HDFC Sky, 11 AugCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Pyramid Technoplast Share Price Jumps Pcb Approval Boosts Rs 586Cr Co

Alice Blue, 24 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Pyramid Technoplast Share Price Forecast: 3 Year Outlook to 2030

Univest, 23 Jul

Pyramid Technoplast shares trade higher on pollution control board approval

Moneycontrol.com, 24 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Pyramid Technoplast Ltd leads gainers in 'B' group

Business Standard, 27 Jul

Pyramid Technoplast Q1FY27 profit rises 32% as revenue surges 36%

scanx.trade, 11 AugResults

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

Watch Items

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

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑