Aditya Spinners Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹13.65₹0.00 (0.00%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 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 Aditya Spinners Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aditya Spinners Limited manufactures and sells of blended yarn products in India. It also exports its products. The company was incorporated in 1991 and is headquartered in Hyderabad, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees260

Annual revenue₹64 Cr

How does it make money?

Turns over ₹64 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 260 employees supports ₹24.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin4.4%

Net margin0.5%

Revenue / employee₹24.4 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 is its competitive advantage?Little sign of one

Returns on capital of 0.3% 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.

ROCE0.3%

ROE0.7%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -8% while net margin moved -85% 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-8%

Margin effect-85%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.7% a year
✗ Profit has declined at 47.8% a year
✗ Latest-year revenue growth of -19.3% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

54/ 100

Fair

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

39.0x

3Y Median

19.2x

40 monthly readings · mean 24.4x · range 11.9x–80.7x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 103% above its 3y median of 19.2x. 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 44% below the peer median of 69.2x.

vs. its own history

Expensive

19.2x median over 40 months · +103%

vs. sector peers

Cheap

69.2x median of 4 peers · -44%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

39.0x

P/B

0.50x

EV/EBITDA

13.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 23% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 11.2% to 4.4% over 3 years.
Return on equity is falling
ROE has dropped from 4.7% to 0.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 8.6% to 0.3% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 41% against revenue growth of -8% — stock may not be moving.
Valuation above its historical average
At 39.0x the stock trades 103% above its own median of 19.2x.
Short-term liquidity is tight
Current ratio of 0.74 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.1x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.7 points, from 11.2% to 4.4%.
🟡Profit is decliningFinancial
Net profit is down 86% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 41% against revenue up -8% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.74 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 23% 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.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 11.2% to 4.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 5.8x 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 103% 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.
Returns on shareholder capital are falling
ROE has dropped from 4.7% to 0.7%. 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.
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.

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

1EBITDA margin holds above 2%✓ 4.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 0.1x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 0.3%
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

5 good · 3 neutral · 3 weak

Market Cap

₹23 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.0x

Fair

Fairly valued against the generic band

P/B Ratio

0.50x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.35

Profitable

Profitable on a per-share basis

ROE

0.7%

Weak

Weak capital efficiency

ROCE

0.3%

Weak

Low return on total capital employed

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

-19.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

109.3%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹13.65

Operating Margin

-2.5%

Weak

Thin margins leave little room for error

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.74

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

14.0 / 14.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

20.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹69 Cr	₹61 Cr	₹62 Cr	₹64 Cr	-2.7%
EBITDA	₹8 Cr	₹6 Cr	₹2 Cr	₹3 Cr	-28.5%
EBITDA Margin	11.2%	9.8%	3.9%	4.4%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	-₹3 Cr	₹0 Cr	-47.8%
EPS	₹1.32	₹1.11	₹-2.01	₹0.19	-47.6%
ROE	4.7%	3.8%	-7.4%	0.7%	—
ROCE	8.6%	5.8%	-4.2%	0.3%	—
Total Debt	₹21 Cr	₹16 Cr	₹15 Cr	₹16 Cr	-8.2%
Free Cash Flow	-₹0 Cr	₹8 Cr	-₹0 Cr	₹2 Cr	—

🔴 Revenue has shrunk at 2.7% a year over 3 years.

🔴 EBITDA has shrunk at 28.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.2% to 4.4% over 3 years (-6.7 pts).

🔴 PAT (Net Profit) has shrunk at 47.8% a year over 3 years.

🔴 EPS has shrunk at 47.6% a year over 3 years.

🔴 ROE has fallen from 4.7% to 0.7% over 3 years (-4.0 pts).

🔴 ROCE has fallen from 8.6% to 0.3% over 3 years (-8.3 pts).

🟢 Total Debt has shrunk at 8.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹68 Cr

Total Liabilities

₹23 Cr

Total Debt

₹16 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.7%

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

6 general

Aditya Spinners Company Secretary Priyanka Baldewa resigns

scanx.trade, 14 Oct

Aditya Spinners Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

Bhilwara Spinners Share Price analysis: valuation and peers

Univest, 15 Oct

Aditya Spinners Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

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

Equitymaster, 10 Oct

Aditya Spinners turns profitable with net profit of ₹31.46 lakhs in FY26

scanx.trade, 22 May

Watch Items

Revenue growth is negative (-19.3%) 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

🔴Business QualityWeak5.9/20

🟡Financial HealthAdequate12.2/20

🔴GrowthWeak4.1/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair7.5/15

🔴RiskHigh4.4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 2%4.4%
✗Debt / EBITDA falls below 3x5.8x
✗Interest cover stays above 3x0.1x
✓Free cash flow remains positive₹2 Cr
✗ROCE stays above 8%0.3%