Aastha Spintex Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹27.42−₹0.16 (−0.58%)

DalalBaazaar Score

67 / 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, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Aastha Spintex Limited manufactures and trades in cotton yarns and bales for knitting and weaving applications in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees209

Annual revenue₹344 Cr

How does it make money?

Turns over ₹344 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 209 employees supports ₹1.64 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.64 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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 27.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 2 years revenue moved +46% while net margin moved +1380% 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+46%

Margin effect+1380%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 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

10.2x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 85% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.5x

PEG

0.03

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 6.0% to 14.6% over 2 years.
Return on equity is rising
ROE has improved from 1.8% to 18.9%.
Return on capital is rising
ROCE has improved from 8.1% to 27.2%.
High return on capital employed
ROCE of 27.2% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 3 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.
🔴Receivables growing faster than salesFinancial
Receivables up 162% against revenue up 46% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 167% against revenue up 46% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹19 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.2% 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.
Margin expansion has further to run
EBITDA margin has risen from 6.0% to 14.6%. 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 85% 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 162% against revenue up 46%. 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
3 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

1Revenue growth stays above 16% a year✓ 21.0% CAGR
Latest reported year was -15.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹19 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 27.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

₹242 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

1.39x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.69

Profitable

Profitable on a per-share basis

ROE

18.9%

Strong

Strong capital efficiency

ROCE

27.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.67x

Moderate

Moderate leverage

Revenue Growth (YoY)

-15.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

28.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.18%

Modest

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

Free Cash Flow

-₹19 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

9.2%

Average

Average margins

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

1.64

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

33.3 / 36.4

Bearish alignment (short < long)

RSI (14)

25.9

Oversold zone

Financial Trend (3-Year)

Metric	FY23	FY24	FY25	2Y CAGR
Revenue	₹235 Cr	₹296 Cr	₹344 Cr	+21.0%
EBITDA	₹14 Cr	₹38 Cr	₹50 Cr	+88.0%
EBITDA Margin	6.0%	12.7%	14.6%	—
PAT (Net Profit)	₹1 Cr	₹16 Cr	₹23 Cr	+365.3%
EPS	₹0.33	₹5.15	—	—
ROE	1.8%	21.3%	18.9%	—
ROCE	8.1%	25.8%	27.2%	—
Total Debt	₹81 Cr	₹83 Cr	₹95 Cr	+8.3%
Free Cash Flow	-₹12 Cr	₹9 Cr	-₹19 Cr	—

🟢 Revenue has grown at 21.0% a year over 2 years.

🟢 EBITDA has grown at 88.0% a year over 2 years.

🟢 EBITDA Margin has risen from 6.0% to 14.6% over 2 years (+8.6 pts).

🟢 PAT (Net Profit) has grown at 365.3% a year over 2 years.

🟢 ROE has risen from 1.8% to 18.9% over 2 years (+17.2 pts).

🟢 ROCE has risen from 8.1% to 27.2% over 2 years (+19.1 pts).

🔴 Total Debt has grown at 8.3% a year over 2 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹274 Cr

Total Liabilities

₹153 Cr

Cash & Equivalents

₹11 Cr

Operating Cash Flow

-₹18 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.5%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

09 Sept 2026

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 positive1 mixed3 general

Aastha Spintex (NSEI:AASTHA) - Stock Analysis

Simply Wall Street, 17 Oct

Aastha Spintex Limited (AASTHA.NS) stock price, news, quote and history

Yahoo Finance Singapore, 16 Oct

Compare with

Equitymaster, 17 Oct

Aastha Spintex shares rise 9% after adjusting for 1:1 bonus issue

Moneycontrol.com, 28 SeptCapital return

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

Bonus issue record date today: Last chance to buy Aastha Spintex shares as deadline approaches-Check stock performance

Livemint, 25 SeptCapital return

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

Aastha Spintex Secures ₹25 Crore Fabric Orders; Shares Fall 9.99%

HDFC Sky, 24 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Revenue growth is negative (-15.7%) 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.
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

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

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. 3 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 ↑