Addi Industries Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹79.50₹0.00 (0.00%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Addi Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Addi Industries Limited, together with its subsidiary, Aum Texfab Private Limited, manufactures, markets, sells, and exports knitwear fabrics and readymade garments in India. The company was incorporated in 1980 and is headquartered in New Delhi, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees4

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹46 reaches shareholders as profit, with ₹76 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹1.28 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin75.9%

Net margin46.1%

Revenue / employee₹1.28 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.

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 is its competitive advantage?Little sign of one

Returns on capital of 4.3% 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.

ROCE4.3%

ROE2.9%

Peer median ROE25.9%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Profit has declined at 48.2% a year

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

52/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.3x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 49% 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 · -49%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

35.3x

P/B

1.04x

EV/EBITDA

21.6x

PEG

5.52

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

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 23.0% to 2.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.7% to 4.3% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 86% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 49% 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?

Returns on shareholder capital are falling
ROE has dropped from 23.0% to 2.9%. 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.

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

1EBITDA margin holds above 74%✓ 75.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 4.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 8 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

2 good · 6 neutral · 3 weak

Market Cap

₹86 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.04x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.25

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

4.3%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

6.4%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹79.5

Operating Margin

-6.9%

Weak

Thin margins leave little room for error

Net Margin

33.5%

Good

Strong bottom-line conversion

Current Ratio

13.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.08

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

RSI (14)

53.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	₹3 Cr	₹6 Cr	₹4 Cr	₹4 Cr	+7.0%
PAT (Net Profit)	₹17 Cr	₹5 Cr	₹3 Cr	₹2 Cr	-48.2%
EPS	₹15.78	₹4.32	₹3	₹2.19	-48.2%
ROE	23.0%	6.0%	4.1%	2.9%	—
ROCE	28.7%	8.2%	5.4%	4.3%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	—	—
Free Cash Flow	-₹4 Cr	-₹9 Cr	₹2 Cr	-₹6 Cr	—

🟢 EBITDA has grown at 7.0% a year over 3 years.

🔴 PAT (Net Profit) has shrunk at 48.2% a year over 3 years.

🔴 EPS has shrunk at 48.2% a year over 3 years.

🔴 ROE has fallen from 23.0% to 2.9% over 3 years (-20.1 pts).

🔴 ROCE has fallen from 28.7% to 4.3% over 3 years (-24.4 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹84 Cr

Total Liabilities

₹3 Cr

Total Debt

—

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹6 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.6%

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 mixed4 general

Addi Industries | Stock Share Price Live

MarketSmith India, 16 Oct

Addi Industries discloses e-voting results for 44th AGM held Sep 30

scanx.trade, 03 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Addi Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Addi Industries Q1 results FY27: PAT Rs 89 Lakh, Revenue Rs 2 Cr

Univest, 03 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

TNA SOLUTIONS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 10 Oct

Alacrity Securities Ltd leads losers in 'B' group

Business Standard, 21 Aug

Watch Items

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.

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟢Financial HealthStrong13.2/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate7.5/15

🟡ValuationFair9.5/15

🔴RiskHigh4.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 74%75.9%
✗Free cash flow remains positive-₹6 Cr
✗ROCE stays above 8%4.3%