Aananda Lakshmi Spinning Mills Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹9.08₹0.00 (0.00%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 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 Aananda Lakshmi Spinning Mills Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aananda Lakshmi Spinning Mills Limited manufactures and sells textile products in India. The company also manufactures cotton and polyester yarns. In addition, it engages in the real estate and land plotting business.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees6

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹-147 reaches shareholders as profit, with ₹87 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹33.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin87.2%

Net margin-147.1%

Revenue / employee₹33.9 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.

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 has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +871% while net margin moved -106% 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+871%

Margin effect-106%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

2.1x

3Y Median

1.4x

40 monthly readings · mean 1.3x · range 0.7x–1.9x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 53% above its 3y median of 1.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 97% below the peer median of 69.2x.

vs. its own history

Expensive

1.4x median over 40 months · +53%

vs. sector peers

Cheap

69.2x median of 4 peers · -97%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

2.1x

P/B

—

EV/EBITDA

8.2x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -1629.8% to 87.2% over 3 years.
Debt is being paid down
Total debt is down 51% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention3

Valuation above its historical average
At 2.1x the stock trades 53% above its own median of 1.4x.
Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.
Short-term liquidity is tight
Current ratio of 0.13 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴The company is lossmakingFinancial
Net profit of -₹3 Cr in the latest reported year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.13 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -1629.8% to 87.2%. 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 51% 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 97% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 6.4x 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 53% 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.
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

1Revenue growth stays above 85% a year✓ 113.3% CAGR
Latest reported year was -66.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 85%✓ 87.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
5Valuation vs its own median of 1.4x✗ 2.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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 · 4 neutral · 4 weak

Market Cap

₹3 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2.1x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹4.35

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-66.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-196.9%

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

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹9.08

Operating Margin

-41.7%

Weak

Thin margins leave little room for error

Net Margin

-55.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.13

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

9.6 / 10.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹2 Cr	₹4 Cr	₹2 Cr	+113.3%
EBITDA	-₹3 Cr	₹6 Cr	₹3 Cr	₹2 Cr	—
EBITDA Margin	-1629.8%	269.9%	80.9%	87.2%	—
PAT (Net Profit)	₹5 Cr	₹4 Cr	₹3 Cr	-₹3 Cr	—
EPS	₹14.33	₹11.67	₹8.82	₹-8.55	—
Total Debt	₹23 Cr	₹20 Cr	₹13 Cr	₹11 Cr	-21.3%
Free Cash Flow	-₹6 Cr	₹1 Cr	₹7 Cr	₹3 Cr	—

🟢 Revenue has grown at 113.3% a year over 3 years.

🟢 EBITDA has turned positive, from -₹3 Cr to ₹2 Cr.

🟢 EBITDA Margin has risen from -1629.8% to 87.2% over 3 years (+1717.0 pts).

🔴 PAT (Net Profit) has turned negative, from ₹5 Cr to -₹3 Cr.

🔴 EPS has turned negative, from ₹14.33 to ₹-8.55.

🟢 Total Debt has shrunk at 21.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹6 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5 Cr

Total Liabilities

₹23 Cr

Total Debt

₹11 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.3%

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

2 positive4 general

Aananda Lakshmi Spinning Mills Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 05 Oct

Aananda Lakshmi Spinning Mills sets record date for Sep 30 AGM

scanx.trade, 29 Aug

Aananda Lakshmi Spinning Mills Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Surya Roshni consolidated net profit rises 77.22% in the June 2026 quarter

Business Standard, 11 AugResults

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

Aananda Lakshmi Spinning Mills Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 03 Sept

Finolex Cables consolidated net profit rises 53.14% in the June 2026 quarter

Business Standard, 11 AugResults

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

Watch Items

Revenue growth is negative (-66.8%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🟢GrowthStrong13/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

Aananda Lakshmi Spinning Mills Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 85% a year113.3% CAGR
✓EBITDA margin holds above 85%87.2%
✗Debt / EBITDA falls below 3x6.4x
✓Free cash flow remains positive₹3 Cr
✗Valuation vs its own median of 1.4x2.1x today