Technopack Polymers Limited

Consumer Cyclical — Packaging & Containers · BSE

₹13.48₹0.00 (0.00%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Technopack Polymers Limited operates as a packaging manufacturing company in India. The company offers continuous compression molding caps, as well as closures, PET preforms, HDPE caps, and a range of plastic packaging solutions.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees8

Annual revenue₹8 Cr

How does it make money?

Turns over ₹8 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹1.05 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin35.5%

Net margin14.4%

Revenue / employee₹1.05 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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

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.

ROCE7.8%

ROE5.9%

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 -27% while net margin moved -30% 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-27%

Margin effect-30%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.0% a year
✗ Profit has declined at 20.1% a year
✗ Latest-year revenue growth of -44.6% is below the longer-term trend — momentum is fading
✗ Profit fell 37.5% in the latest year

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

88/ 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

12.0x

3Y Median

15.1x

40 monthly readings · mean 16.9x · range 8.3x–34.8x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 3y median of 15.1x. 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 83% below the peer median of 69.2x.

vs. its own history

Cheap

15.1x median over 40 months · -21%

vs. sector peers

Cheap

69.2x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.0x

P/B

0.69x

EV/EBITDA

5.6x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 33.3% to 35.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Valuation below its historical average
At 12.0x the stock trades 21% below its own median of 15.1x.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 13.9% to 5.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.3% to 7.8% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 49% against revenue growth of -27% — stock may not be moving.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Inventory building faster than salesFinancial
Inventory up 49% against revenue up -27% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 49% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 33.3% to 35.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 21% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 83% 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 ₹1 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?

Returns on shareholder capital are falling
ROE has dropped from 13.9% to 5.7%. 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

1EBITDA margin holds above 34%✓ 35.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 7.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 6.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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 · 2 neutral · 4 weak

Market Cap

₹15 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.0x

Cheap

Cheap against the generic band

P/B Ratio

0.69x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.12

Profitable

Profitable on a per-share basis

ROE

5.9%

Weak

Weak capital efficiency

ROCE

7.8%

Weak

Low return on total capital employed

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

-44.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-37.5%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹13.48

ROA

4.3%

Average

Average asset productivity

Operating Margin

24.8%

Good

Healthy core-business profitability

Net Margin

14.4%

Good

Strong bottom-line conversion

Current Ratio

9.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.26

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

12.5 / 12.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

70.4

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12 Cr	₹12 Cr	₹16 Cr	₹8 Cr	-10.0%
EBITDA	₹4 Cr	₹4 Cr	₹3 Cr	₹3 Cr	-8.1%
EBITDA Margin	33.3%	32.0%	19.2%	35.5%	—
PAT (Net Profit)	₹2 Cr	₹1 Cr	₹2 Cr	₹1 Cr	-20.1%
EPS	₹2.7	₹1.04	₹1.36	—	—
ROE	13.9%	6.2%	8.6%	5.7%	—
ROCE	19.3%	8.4%	13.5%	7.8%	—
Total Debt	₹2 Cr	₹7 Cr	₹3 Cr	₹3 Cr	+7.2%
Free Cash Flow	-₹1 Cr	-₹9 Cr	₹2 Cr	₹1 Cr	—

🔴 Revenue has shrunk at 10.0% a year over 3 years.

🔴 EBITDA has shrunk at 8.1% a year over 3 years.

🟢 EBITDA Margin has risen from 33.3% to 35.5% over 3 years (+2.2 pts).

🔴 PAT (Net Profit) has shrunk at 20.1% a year over 3 years.

🔴 ROE has fallen from 13.9% to 5.7% over 3 years (-8.2 pts).

🔴 ROCE has fallen from 19.3% to 7.8% over 3 years (-11.6 pts).

🔴 Total Debt has grown at 7.2% a year over 3 years.

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹24 Cr

Total Liabilities

₹3 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.7%

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 mixed5 general

Technopack Polymers passes FY26 financials, re-appoints Kalpesh Pandya

scanx.trade, 02 Oct

Technopack Polymers Files Non-Applicability Certificate Under SEBI Regulation 74(5) for Q4FY26

scanx.trade, 14 Apr

Technopack Polymers IPO Date, GMP, Price, Review, Allotment

IPO Watch, 17 Oct

1:1 Bonus Shares Alert: Record Date Fixed; The Perfect Addition To Your Portfolio?

Goodreturns, 27 Jan

Zomato share price hits new high, up 27% in one month; m-cap nears Rs 3 trn

Business Standard, 05 DecPrice 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.

Manas Polymers and Energies (NSEI:MPEL) - Stock Analysis

Simply Wall Street, 05 Oct

Watch Items

Revenue growth is negative (-44.6%) on the latest reported period — check if this is one-off or a trend.
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 QualityAdequate10.3/20

🟢Financial HealthStrong17.8/20

🔴GrowthWeak4.1/20

🟡ProfitabilityModerate6.9/15

🟢ValuationAttractive13.2/15

🟡RiskModerate5.2/10

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

✓EBITDA margin holds above 34%35.5%
✓Free cash flow remains positive₹1 Cr
✓Debt / EBITDA stays below 2x1.0x
✗ROCE stays above 8%7.8%
✓Interest cover stays above 4x6.8x