Transpek Industry Limited

Basic Materials — Chemicals · NSE

₹1,325.00−₹57.40 (−4.15%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, 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. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Transpek Industry Limited manufactures and sells chemical products in India.

IndustryChemicals

SectorBasic Materials

Employees545

Annual revenue₹615 Cr

How does it make money?

Turns over ₹615 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 545 employees supports ₹1.13 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.13 Cr

Who are its competitors?

The closest listed comparisons in its industry are PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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 ROE15.4%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -26% while net margin moved -27% 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-26%

Margin effect-27%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 9.4% a year
✗ Profit has declined at 18.2% a year
✗ Profit fell 42.7% in the latest year

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

80/ 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

19.0x

Sector Median

33.8x

median of 3 sector peers

🟢Against its sector it trades 44% below the peer median of 33.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

33.8x median of 3 peers · -44%

vs. generic bands

Fair

15x–35x

EV/EBITDA

6.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 49% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 14.2% to 5.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.1% to 7.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 9.70x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 27% against revenue up -26% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 45% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 49% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 44% 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?

Leverage amplifies any setback
Debt/Equity of 9.70x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 27% against revenue up -26%. 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 14.2% to 5.9%. 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.
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 17%✓ 18.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹40 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.6x
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.

Investment Checklist

5 / 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 · 3 neutral · 5 weak

Market Cap

₹740 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.0x

Fair

Fairly valued against the generic band

P/B Ratio

0.96x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹69.8

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

9.70x

High

High leverage

Revenue Growth (YoY)

-2.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-42.7%

Falling

Profits are shrinking

Dividend Yield

1.51%

Modest

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

Free Cash Flow

₹40 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.2%

Average

Average margins

Net Margin

6.3%

Average

Average bottom-line conversion

Current Ratio

2.54

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

71%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1354.2 / 1324.9

Bullish alignment (short > long)

RSI (14)

53.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹826 Cr	₹580 Cr	₹648 Cr	₹615 Cr	-9.4%
EBITDA	₹164 Cr	₹107 Cr	₹130 Cr	₹116 Cr	-11.0%
EBITDA Margin	19.9%	18.5%	20.0%	18.8%	—
PAT (Net Profit)	₹83 Cr	₹39 Cr	₹49 Cr	₹46 Cr	-18.2%
EPS	₹149.45	₹69.03	₹87.25	₹81.72	-18.2%
ROE	14.2%	5.7%	6.5%	5.9%	—
ROCE	17.1%	8.2%	8.1%	7.8%	—
Total Debt	₹145 Cr	₹123 Cr	₹94 Cr	₹74 Cr	-19.9%
Free Cash Flow	₹62 Cr	₹58 Cr	₹114 Cr	₹40 Cr	-13.2%

🔴 Revenue has shrunk at 9.4% a year over 3 years.

🔴 EBITDA has shrunk at 11.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 19.9% to 18.8% over 3 years (-1.0 pts).

🔴 PAT (Net Profit) has shrunk at 18.2% a year over 3 years.

🔴 EPS has shrunk at 18.2% a year over 3 years.

🔴 ROE has fallen from 14.2% to 5.9% over 3 years (-8.3 pts).

🔴 ROCE has fallen from 17.1% to 7.8% over 3 years (-9.3 pts).

🟢 Total Debt has shrunk at 19.9% a year over 3 years.

🔴 Free Cash Flow has shrunk at 13.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,008 Cr

Total Liabilities

₹241 Cr

Cash & Equivalents

₹58 Cr

Operating Cash Flow

₹78 Cr

Capex

-₹38 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.7%

Corporate Actions

Dividend Rate

₹20

Ex-Dividend Date

07 Sept 2026

Peer Comparison

Company	P/E	ROE
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 mixed1 negative4 general

Transpek Industry Co MD guides 15-20% revenue growth in FY27

scanx.trade, 15 Oct

Transpek Industry Ltd. Share Price Rises 8.72% Today

Univest, 31 JulPrice 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.

Transpek Industry (TRANSPEK.NS) Falls 4.43% to ₹1298.4, Drifting Toward Mid-Range Support - Single Stock ETF

siam.in, 10 Sept

TRANSPEK Stock Price and Chart — NSE:TRANSPEK

TradingView, 20 Apr

Transpek Industry Q4 Net Profit drops 65.8% to ₹6.6 Cr as Revenue falls 9%

Sahi, 26 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Transpek Industry FY26 PAT falls 6.3% to ₹45.6 crore

scanx.trade, 04 Oct

Watch Items

Revenue growth is negative (-2.1%) 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.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · 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 4 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑