Anjani Synthetics Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹25.79+₹0.49 (+1.94%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Anjani Synthetics Limited manufactures, processes, and sells textile products in India. The company offers cotton, viscose, synthetic, and blended fabrics for shirting, suiting, apparel, and multipurpose applications.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees101

Annual revenue₹282 Cr

How does it make money?

Turns over ₹282 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 101 employees supports ₹2.79 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.79 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?Little sign of one

Returns on capital of 7.5% 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.

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 -14% while net margin moved +26% 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-14%

Margin effect+26%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.9% a year
✗ Profit CAGR of only 2.9%

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

77/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

9.4x

3Y Median

14.0x

40 monthly readings · mean 14.0x · range 9.4x–19.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 32% below its 3y median of 14.0x. 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 86% below the peer median of 69.2x.

vs. its own history

Cheap

14.0x median over 40 months · -32%

vs. sector peers

Cheap

69.2x median of 4 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.1x

PEG

3.29

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 41% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 10.9% to 7.5% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 41% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 32% 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 86% 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 ₹6 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

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 3%✓ 4.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹6 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 7.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

7 good · 2 neutral · 2 weak

Market Cap

₹38 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.4x

Cheap

Cheap against the generic band

P/B Ratio

0.42x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.73

Profitable

Profitable on a per-share basis

ROE

4.2%

Weak

Weak capital efficiency

ROCE

7.5%

Weak

Low return on total capital employed

Debt/Equity

0.33x

Low

Conservative leverage

Revenue Growth (YoY)

13.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

25.8%

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

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

2.6%

Weak

Thin margins leave little room for error

Net Margin

1.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.05

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

48%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

27.7 / 26.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

28.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹327 Cr	₹253 Cr	₹224 Cr	₹282 Cr	-4.9%
EBITDA	₹11 Cr	₹10 Cr	₹10 Cr	₹13 Cr	+5.3%
EBITDA Margin	3.5%	3.8%	4.3%	4.7%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹3 Cr	₹4 Cr	+2.9%
EPS	₹2.36	₹2.89	₹2.25	₹2.57	+2.9%
ROE	4.4%	5.2%	3.9%	4.2%	—
ROCE	10.9%	10.8%	8.4%	7.5%	—
Total Debt	₹50 Cr	₹44 Cr	₹32 Cr	₹30 Cr	-16.1%
Free Cash Flow	₹19 Cr	₹10 Cr	₹20 Cr	₹6 Cr	-31.0%

🔴 Revenue has shrunk at 4.9% a year over 3 years.

🟢 EBITDA has grown at 5.3% a year over 3 years.

🟢 EBITDA Margin has risen from 3.5% to 4.7% over 3 years (+1.2 pts).

🟢 PAT (Net Profit) has grown at 2.9% a year over 3 years.

🟢 EPS has grown at 2.9% a year over 3 years.

🟡 ROE has held roughly flat at 4.2% over 3 years.

🔴 ROCE has fallen from 10.9% to 7.5% over 3 years (-3.4 pts).

🟢 Total Debt has shrunk at 16.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 31.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹161 Cr

Total Liabilities

₹72 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹6 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.1%

Corporate Actions

Ex-Dividend Date

19 Sept 2008

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

1 positive5 general

Compare with ANJANI SYNT.

Equitymaster, 16 Oct

Anjani Synthetics Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 27 Aug

Anjani Synthetics standalone net profit rises 23.91% in the June 2026 quarter

Business Standard, 13 AugResults

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

Anjani Synthetics shareholders approve director re-appointments at 42nd AGM

scanx.trade, 28 Sept

Anjani Synthetics Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Compare ANJANI SYNT. with

Equitymaster, 29 Sept

Watch Items

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

StrongFinancial Health · Valuation

MiddlingRisk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; ROCE stays above 8% · see Key things to watch ↑