Rex Sealing and Packing Industries Limited

Industrials — Specialty Business Services · BSE

₹139.95₹0.00 (0.00%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Rex Sealing and Packing Industries Limited manufactures and sells sealing, packing, and insulation products in India and internationally.

IndustrySpecialty Business Services

SectorIndustrials

Employees26

Annual revenue₹38 Cr

How does it make money?

Turns over ₹38 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 26 employees supports ₹1.47 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin10.6%

Net margin4.7%

Revenue / employee₹1.47 Cr

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 13.0% 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.

ROCE13.0%

ROE8.5%

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 +52% while net margin moved +276% 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+52%

Margin effect+276%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.39 — 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

64/ 100

Average

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

Valuation

73/ 100

Cheap

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

19.7x

3Y Median

19.5x

40 monthly readings · mean 35.3x · range 12.1x–110.7x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 19.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 78% below the peer median of 88.8x.

vs. its own history

Fair

19.5x median over 40 months · +1%

vs. sector peers

Cheap

88.8x median of 3 peers · -78%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

19.7x

P/B

1.44x

EV/EBITDA

9.8x

PEG

0.25

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 6.1% to 10.6% 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 2.5% to 7.3%.
Return on capital is rising
ROCE has improved from 7.1% to 13.0%.
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 Attention1

Debt is rising
Total debt is up 243% over 3 years — worth checking what it funded.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 243% over 3 years, from ₹1 Cr to ₹4 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.1% to 10.6%. 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 78% 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 ₹3 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 11% a year✓ 15.0% CAGR
Latest reported year was 25.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.0%
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

6 good · 5 neutral · 0 weak

Market Cap

₹36 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.12

Profitable

Profitable on a per-share basis

ROE

8.5%

Moderate

Moderate capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

25.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

29.9%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹139.95

ROA

5.8%

Average

Average asset productivity

Operating Margin

8.4%

Average

Average margins

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

2.20

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.39

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

131.9 / 118.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

72.8

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹25 Cr	₹31 Cr	₹35 Cr	₹38 Cr	+15.0%
EBITDA	₹2 Cr	₹4 Cr	₹4 Cr	₹4 Cr	+38.1%
EBITDA Margin	6.1%	14.2%	10.4%	10.6%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+78.8%
EPS	₹1.59	₹11.05	₹8.71	—	—
ROE	2.5%	16.4%	10.8%	7.3%	—
ROCE	7.1%	21.9%	9.9%	13.0%	—
Total Debt	₹1 Cr	₹2 Cr	₹11 Cr	₹4 Cr	+50.8%
Free Cash Flow	-₹2 Cr	-₹1 Cr	-₹9 Cr	₹3 Cr	—

🟢 Revenue has grown at 15.0% a year over 3 years.

🟢 EBITDA has grown at 38.1% a year over 3 years.

🟢 EBITDA Margin has risen from 6.1% to 10.6% over 3 years (+4.5 pts).

🟢 PAT (Net Profit) has grown at 78.8% a year over 3 years.

🟢 ROE has risen from 2.5% to 7.3% over 3 years (+4.8 pts).

🟢 ROCE has risen from 7.1% to 13.0% over 3 years (+5.8 pts).

🔴 Total Debt has grown at 50.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹37 Cr

Total Liabilities

₹12 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

2.2%

Insider Holding

87.3%

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

Rex Sealing & Packing Industries adopts FY26 financials, reappoints director

scanx.trade, 03 Oct

Rex Sealing & Packing Industries Appoints Ms. Manisha Munnalal Gupta as Company Secretary

scanx.trade, 05 May

Stock market today: 97 stocks hit 52-week highs, 34 stocks at 52-week low as Nifty 50, Sensex end 1% over lower

Livemint, 12 Jun

ATAM Stock Price and Chart — NSE:ATAM

TradingView, 06 Dec

Royal Sense Limited (ROYAL.BO) stock price, news, quote and history

Yahoo Finance UK, 20 Nov

Stock market today: 79 stocks hit 52-week highs, 48 stocks at 52-week low as Nifty 50, Sensex end lower

Livemint, 17 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟢Financial HealthStrong14.4/20

🟢GrowthStrong16.1/20

🟡ProfitabilityModerate7.1/15

🟢ValuationAttractive10.6/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓Revenue growth stays above 11% a year15.0% CAGR
✓EBITDA margin holds above 9%10.6%
✓Free cash flow remains positive₹3 Cr
✓Debt / EBITDA stays below 2x0.9x
✓ROCE stays above 10%13.0%