Stanpacks (India) Limited

Consumer Cyclical — Packaging & Containers · BSE

₹11.88−₹0.12 (−1.00%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Stanpacks (India) Limited engages in the manufacturing of polypropylene (PP) bags in India. It offers PP woven sacks, PP kraft, Bobpack, and Stanfab products, as well as HDPE woven sacks and flexible waterproof packaging materials for the industrial packaging industry.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees55

Annual revenue₹30 Cr

How does it make money?

Turns over ₹30 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 55 employees supports ₹54.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹54.9 lakh

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 7.8% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +4% while net margin moved -95% 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+4%

Margin effect-95%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.4% — barely ahead of inflation

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

46/ 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

79.2x

2Y Median

51.1x

28 monthly readings · mean 48.7x · range 25.9x–77.1x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 55% above its 2y median of 51.1x. 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 69.2x.

vs. its own history

Expensive

51.1x median over 28 months · +55%

vs. sector peers

Fair

69.2x median of 4 peers · +14%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

14.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -0.4% to 3.5% over 3 years.
Debt is being paid down
Total debt is down 26% 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 -25.0% to -1.3%.
Return on capital is rising
ROCE has improved from -5.4% to 7.8%.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.8x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.3x to 0.8x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -0.4% to 3.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 26% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 7.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 55% 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.
Growth barely outpaces inflation
Revenue compounding at 1.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 1%✓ 3.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 7.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 0.8x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 1.4% CAGR
Latest reported year was 48.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.

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

5 good · 3 neutral · 3 weak

Market Cap

₹7 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

79.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.04x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.15

Profitable

Profitable on a per-share basis

ROE

-1.3%

Weak

Weak capital efficiency

ROCE

7.8%

Weak

Low return on total capital employed

Debt/Equity

1.18x

Moderate

Moderate leverage

Revenue Growth (YoY)

48.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

650.0%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.2%

Weak

Thin margins leave little room for error

Net Margin

0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.04

Defensive

Steadier than the market

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

12.5 / 12.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

35.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹29 Cr	₹27 Cr	₹29 Cr	₹30 Cr	+1.4%
EBITDA	-₹0 Cr	₹1 Cr	₹2 Cr	₹1 Cr	—
EBITDA Margin	-0.4%	4.2%	5.3%	3.5%	—
PAT (Net Profit)	-₹2 Cr	₹0 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹-2.72	₹0.44	₹0.19	₹-0.14	—
ROE	-25.0%	3.9%	1.7%	-1.3%	—
ROCE	-5.4%	8.7%	13.0%	7.8%	—
Total Debt	₹11 Cr	₹9 Cr	₹8 Cr	₹8 Cr	-9.5%
Free Cash Flow	-₹1 Cr	₹3 Cr	₹2 Cr	₹0 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.4% a year).

🟢 EBITDA has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -0.4% to 3.5% over 3 years (+3.9 pts).

🟢 ROE has risen from -25.0% to -1.3% over 3 years (+23.7 pts).

🟢 ROCE has risen from -5.4% to 7.8% over 3 years (+13.2 pts).

🟢 Total Debt has shrunk at 9.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹16 Cr

Total Liabilities

₹9 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.3%

Corporate Actions

Ex-Dividend Date

18 Sept 2006

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

3 mixed3 general

STANPACKS (INDIA) LTD. Share Price

Upstox, 15 Aug

Q4 results: Tata Steel, Godrej, SAIL, Cochin Shipyard among 140 on May 15

Business Standard, 15 MayResults

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

Q4 results: Power Grid, Tata Steel, NHPC, Premier Energies, Cochin Shipyard, ITC Hotels, Godfrey Phillips, others to post earnings on May 15

Upstox, 15 MayResults

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

Q2 Results Today: Vodafone Idea, Ather Energy, Emami, V-Mart, Vikran Engineering, More

Goodreturns, 10 NovResults

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

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Simply Wall Street, 17 Apr

Vinayak Polycon International (BSE:534639) - Stock Analysis

Simply Wall Street, 02 Dec

Watch Items

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

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

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

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑