Valplast Technologies Limited

Industrials — Engineering & Construction · BSE

₹39.90₹0.00 (0.00%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, 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, 6:02 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Valplast Technologies Limited provides engineering and management services in India.

IndustryEngineering & Construction

SectorIndustrials

Employees176

Annual revenue₹102 Cr

How does it make money?

Turns over ₹102 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 176 employees supports ₹58.2 lakh of revenue a year, the signature of a people-led business.

EBITDA margin19.5%

Net margin9.1%

Revenue / employee₹58.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. 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%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Some evidence

ROCE of 22.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE22.9%

ROE19.7%

Peer median ROE14.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 1 years revenue moved +62% while net margin moved -6% 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+62%

Margin effect-6%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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 good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

7.3x

1.2Y Median

15.1x

14 monthly readings · mean 15.0x · range 10.8x–19.9x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 52% below its 1.2y 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 76% below the peer median of 30.1x.

vs. its own history

Cheap

15.1x median over 14 months · -52%

vs. sector peers

Cheap

30.1x median of 3 peers · -76%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.3x

P/B

1.22x

EV/EBITDA

4.6x

PEG

0.14

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 22.9% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 7.3x the stock trades 52% below its own median of 15.1x.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 20.1% to 14.5% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹8 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 52% 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 76% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 20.1% to 14.5%. 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

1Revenue growth stays above 46% a year✓ 61.8% CAGR
Latest reported year was 61.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 19.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 22.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

8 good · 2 neutral · 1 weak

Market Cap

₹78 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.3x

Cheap

Cheap against the generic band

P/B Ratio

1.22x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.49

Profitable

Profitable on a per-share basis

ROE

19.7%

Strong

Strong capital efficiency

ROCE

22.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

61.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

52.2%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹39.9

ROA

10.6%

Good

Assets are working hard

Operating Margin

15.6%

Good

Healthy core-business profitability

Net Margin

9.1%

Average

Average bottom-line conversion

Current Ratio

2.11

Comfortable

Healthy short-term liquidity

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

39.0 / 38.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

67.3

Neutral momentum

Financial Trend (2-Year)

Metric	FY25	FY26	1Y CAGR
Revenue	₹63 Cr	₹102 Cr	+61.8%
EBITDA	₹13 Cr	₹20 Cr	+53.3%
EBITDA Margin	20.6%	19.5%	—
PAT (Net Profit)	₹6 Cr	₹9 Cr	+52.2%
ROE	20.1%	14.5%	—
ROCE	24.7%	22.9%	—
Total Debt	₹23 Cr	₹20 Cr	-9.6%
Free Cash Flow	-₹10 Cr	-₹8 Cr	—

🟢 Revenue has grown at 61.8% a year over 1 years.

🟢 EBITDA has grown at 53.3% a year over 1 years.

🔴 EBITDA Margin has fallen from 20.6% to 19.5% over 1 years (-1.1 pts).

🟢 PAT (Net Profit) has grown at 52.2% a year over 1 years.

🔴 ROE has fallen from 20.1% to 14.5% over 1 years (-5.6 pts).

🔴 ROCE has fallen from 24.7% to 22.9% over 1 years (-1.8 pts).

🟢 Total Debt has shrunk at 9.6% a year over 1 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹113 Cr

Total Liabilities

₹49 Cr

Total Debt

₹20 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.0%

Corporate Actions

Ex-Dividend Date

08 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive5 general

Valplast Technologies Limited Share Price

Upstox, 05 May

Valplast Technologies Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Valplast Technologies shareholders reject ₹1 dividend at 13th AGM

scanx.trade, 15 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Valplast Technologies Ltd Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

Valplast Technologies sets Sept 15 record date for 13th AGM

scanx.trade, 15 Sept

Valplast Technologies Ltd Peer Comparison – Compare with Others

Value Research, 31 Aug

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong14.1/20

🟢Financial HealthStrong15/20

🟢GrowthStrong14.7/20

🟡ProfitabilityModerate8.4/15

🟢ValuationAttractive13.2/15

🔴RiskHigh2.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 46% a year61.8% CAGR
✓EBITDA margin holds above 18%19.5%
✗Free cash flow remains positive-₹8 Cr
✓Debt / EBITDA stays below 2x1.0x
✓ROCE stays above 20%22.9%