Atharv Enterprises Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹4.86+₹0.07 (+1.46%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, 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. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Atharv Enterprises Limited manufactures and sells textile and synthetic fabrics in India. The company offers polyester viscose, polyester cotton, polyester, and cotton fabrics.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹38 reaches shareholders as profit, with ₹85 left at the operating level before interest, tax and depreciation.

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 1.4% 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 -79% while net margin moved +735% 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-79%

Margin effect+735%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 162.0x is demanding — it needs sustained high growth to justify
✗ P/E is 359% above its own historical median of 35.3x — expensive by its own standards
✓ P/B of 0.41x is modest against book value

Quality vs. Valuation

Company Quality

56/ 100

Average

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.

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

Historical Valuation

Current P/E

162.0x

3Y Median

35.3x

40 monthly readings · mean 35.5x · range 24.5x–46.7x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 359% above its 3y median of 35.3x. 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 134% above the peer median of 69.2x.

vs. its own history

Expensive

35.3x median over 40 months · +359%

vs. sector peers

Expensive

69.2x median of 4 peers · +134%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

21.3x

PEG

8.22

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 9.0% to 84.7% over 3 years.
Cash generation is improving
Free cash flow is up 27% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 1 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.44x — earnings must service borrowings before shareholders see anything.
🟡Debt is increasingFinancial
Total debt is up 26% over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.68 — 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 9.0% to 84.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Leverage amplifies any setback
Debt/Equity of 2.44x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 359% 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.
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 83%✓ 84.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 1.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 7.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 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

3 good · 2 neutral · 6 weak

Market Cap

₹8 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

162.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.41x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.03

Profitable

Profitable on a per-share basis

ROE

0.9%

Weak

Weak capital efficiency

ROCE

1.4%

Weak

Low return on total capital employed

Debt/Equity

2.44x

High

High leverage

Revenue Growth (YoY)

-58.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-3.5%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-695.7%

Weak

Thin margins leave little room for error

Net Margin

57.6%

Good

Strong bottom-line conversion

Current Ratio

0.68

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.11

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4.9 / 4.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

34.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹11 Cr	₹0 Cr	₹0 Cr	-41.0%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+24.3%
EBITDA Margin	9.0%	2.7%	121.5%	84.7%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+19.7%
EPS	₹0.06	₹0.11	₹0.11	₹0.11	+19.7%
ROE	0.6%	0.9%	1.0%	0.9%	—
ROCE	0.9%	1.3%	1.4%	1.4%	—
Total Debt	₹0 Cr	₹0 Cr	₹1 Cr	₹0 Cr	+7.9%
Free Cash Flow	₹3 Cr	-₹2 Cr	₹2 Cr	₹4 Cr	+8.2%

🔴 Revenue has shrunk at 41.0% a year over 3 years.

🟢 EBITDA has grown at 24.3% a year over 3 years.

🟢 EBITDA Margin has risen from 9.0% to 84.7% over 3 years (+75.6 pts).

🟢 PAT (Net Profit) has grown at 19.7% a year over 3 years.

🟢 EPS has grown at 19.7% a year over 3 years.

🟡 ROE has held roughly flat at 0.9% over 3 years.

🟡 ROCE has held roughly flat at 1.4% over 3 years.

🔴 Total Debt has grown at 7.9% a year over 3 years.

🟢 Free Cash Flow has grown at 8.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹43 Cr

Total Liabilities

₹22 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

34.4%

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

Vandana Gadia raises stake in Atharv Enterprises to 18.63% via open market

scanx.trade, 12 Oct

Atharv Enterprises Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Atharv Enterprises Ltd. Share Price Surges 11.98% Today

Univest, 24 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Atharv Enterprises reports standalone net profit of Rs 0.05 crore in the June 2026 quarter

Business Standard, 23 JulResults

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

Pramod Gadiya sells entire 0.2% stake in Atharv Enterprises

scanx.trade, 12 Oct

Bhumi Gadia sells entire 4.43% stake in Atharv Enterprises

scanx.trade, 10 Oct

Watch Items

Revenue growth is negative (-58.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality

MiddlingFinancial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑