Texmo Pipes and Products Limited

Industrials — Building Products & Equipment · NSE

₹52.30+₹2.11 (+4.20%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

NEUTRAL

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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Texmo Pipes and Products Limited manufactures and trades in plastic pipes and fittings in India.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees340

Annual revenue₹376 Cr

How does it make money?

Turns over ₹376 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 340 employees supports ₹1.11 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.11 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.9% 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 ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -41% while net margin moved -133% 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-41%

Margin effect-133%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 16.2% a year

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

81/ 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

10.2x

2Y Median

10.9x

28 monthly readings · mean 21.6x · range 5.0x–47.6x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 2y median of 10.9x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 88% below the peer median of 88.8x.

vs. its own history

Fair

10.9x median over 28 months · -6%

vs. sector peers

Cheap

88.8x median of 3 peers · -88%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.0x

PEG

0.43

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 3.9% to 10.6% over 3 years.
Return on equity is rising
ROE has improved from -38.4% to 6.1%.
Return on capital is rising
ROCE has improved from -24.5% to 8.9%.
Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.

🔴 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

🔴Debt has risen sharplyFinancial
Total debt is up 81% over 3 years, from ₹30 Cr to ₹55 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 62% against revenue up -41% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹12 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.9% 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 88% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 62% against revenue up -41%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 9%✓ 10.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹12 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 8.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 5.4x
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

6 good · 3 neutral · 2 weak

Market Cap

₹153 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.2x

Cheap

Cheap against the generic band

P/B Ratio

0.57x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.11

Profitable

Profitable on a per-share basis

ROE

6.1%

Weak

Weak capital efficiency

ROCE

8.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

11.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

23.6%

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

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.4%

Average

Average margins

Net Margin

3.9%

Average

Average bottom-line conversion

Current Ratio

2.11

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.22

Defensive

Steadier than the market

52W Range Position

61%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

54.5 / 50.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹638 Cr	₹534 Cr	₹391 Cr	₹376 Cr	-16.2%
EBITDA	₹25 Cr	₹37 Cr	₹37 Cr	₹40 Cr	+17.0%
EBITDA Margin	3.9%	7.0%	9.3%	10.6%	—
PAT (Net Profit)	-₹72 Cr	₹5 Cr	₹19 Cr	₹14 Cr	—
EPS	₹-24.58	₹1.59	₹6.57	₹4.81	—
ROE	-38.4%	2.4%	8.9%	6.1%	—
ROCE	-24.5%	5.4%	7.7%	8.9%	—
Total Debt	₹30 Cr	₹56 Cr	₹64 Cr	₹55 Cr	+21.9%
Free Cash Flow	-₹7 Cr	-₹17 Cr	₹9 Cr	-₹12 Cr	—

🔴 Revenue has shrunk at 16.2% a year over 3 years.

🟢 EBITDA has grown at 17.0% a year over 3 years.

🟢 EBITDA Margin has risen from 3.9% to 10.6% over 3 years (+6.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹72 Cr to ₹14 Cr.

🟢 EPS has turned positive, from ₹-24.58 to ₹4.81.

🟢 ROE has risen from -38.4% to 6.1% over 3 years (+44.5 pts).

🟢 ROCE has risen from -24.5% to 8.9% over 3 years (+33.5 pts).

🔴 Total Debt has grown at 21.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹374 Cr

Total Liabilities

₹145 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

43.3%

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

1 positive1 mixed4 general

Texmo Pipes and Products Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

Texmo Pipes faces ₹25.66 Cr arbitral award in L&T dispute

scanx.trade, 13 Oct

Texmo Pipes (TEXMOPIPES.NS) Slips 3.39% to ₹53.60 as Support at ₹50.92 Comes Into Focus - Momentum Surge Alerts

siam.in, 29 Sept

Texmo Pipes & Products consolidated net profit rises 20.70% in the June 2026 quarter

Business Standard, 13 AugResults

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

Texmo Pipes & Products Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Texmo Pipes And Products Share Price after today’s rise

Univest, 17 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.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingProfitability

WeakBusiness Quality · Growth · Risk

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑