AYM Syntex Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹268.65−₹2.65 (−0.98%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:26 pm

Understanding the Business

Company site ↗

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

What does this company do?

AYM Syntex Limited manufactures and sells polyester filament yarn, nylon filament, and bulk continuous filament yarns for the textile and floor-covering industries in India, Australia, the European Union, New Zealand, the United Kingdom, the United States, and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees1,504

Annual revenue₹1,338 Cr

How does it make money?

Turns over ₹1,338 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 1,504 employees supports ₹89.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹89.0 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.

Compared side by side in Peers ↓

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.

Peer median ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -6% while net margin moved -3% 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-6%

Margin effect-3%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.1% a year
✗ Profit has declined at 2.9% a year
✗ Profit fell 43.7% in the latest year

Quality vs. Valuation

Company Quality

37/ 100

Weak

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

Valuation

48/ 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

84.0x

3Y Median

106.4x

40 monthly readings · mean 232.4x · range 47.1x–620.1x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 3y median of 106.4x. 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 21% above the peer median of 69.2x.

vs. its own history

Cheap

106.4x median over 40 months · -21%

vs. sector peers

Expensive

69.2x median of 4 peers · +21%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

19.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 32% 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

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🟡Receivables growing faster than salesFinancial
Receivables up 29% against revenue up -6% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 32% 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 21% 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.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹29 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?

Sales are being booked faster than collected
Receivables are up 29% against revenue up -6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 21% above the peer median. That premium needs a reason that persists, or it closes.
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.

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

1EBITDA margin holds above 5%✓ 6.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹29 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 4.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 4 neutral · 4 weak

Market Cap

₹1,579 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

84.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.68x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.2

Profitable

Profitable on a per-share basis

ROE

1.1%

Weak

Weak capital efficiency

ROCE

4.3%

Weak

Low return on total capital employed

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

7.5%

Modest

Modest growth

Profit Growth (YoY)

-43.7%

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

₹29 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

4.7%

Weak

Thin margins leave little room for error

Net Margin

1.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.15

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

282.3 / 277.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,426 Cr	₹1,315 Cr	₹1,460 Cr	₹1,338 Cr	-2.1%
EBITDA	₹93 Cr	₹82 Cr	₹108 Cr	₹90 Cr	-1.3%
EBITDA Margin	6.6%	6.2%	7.4%	6.7%	—
PAT (Net Profit)	₹7 Cr	₹2 Cr	₹12 Cr	₹7 Cr	-2.9%
EPS	₹1.41	₹0.4	₹2.12	₹1.12	-7.4%
ROE	1.7%	0.5%	2.0%	1.1%	—
ROCE	6.2%	5.7%	7.0%	4.3%	—
Total Debt	₹276 Cr	₹324 Cr	₹202 Cr	₹188 Cr	-12.0%
Free Cash Flow	₹40 Cr	₹6 Cr	₹34 Cr	₹29 Cr	-10.8%

🔴 Revenue has shrunk at 2.1% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-1.3% a year).

🟡 EBITDA Margin has held roughly flat at 6.7% over 3 years.

🔴 PAT (Net Profit) has shrunk at 2.9% a year over 3 years.

🔴 EPS has shrunk at 7.4% a year over 3 years.

🟡 ROE has held roughly flat at 1.1% over 3 years.

🔴 ROCE has fallen from 6.2% to 4.3% over 3 years (-1.9 pts).

🟢 Total Debt has shrunk at 12.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 10.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,072 Cr

Total Liabilities

₹483 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹151 Cr

Capex

-₹123 Cr

Shareholding (proxy)

Institutional Holding

2.6%

Insider Holding

78.9%

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

AYMSYNTEX Historical Data

Equitypandit, 12 Dec

Mandawewala Enterprises Confirms No Encumbrance on AYM Syntex Shares During FY 2025-26

scanx.trade, 07 May

AYM Syntex - Mukul Agrawal’s winning picks: 9 stocks rallied over 50% in CY26; one fresh Q1 addition

The Economic Times, 08 AugResults

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

AYM Syntex reports consolidated net profit of Rs 8.66 crore in the June 2026 quarter

Business Standard, 12 AugResults

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

AYM Syntex: 7 Stock Signals to Watch

Univest, 22 Sept

AYM Syntex accepts Rasik Chauhan's resignation as President

scanx.trade, 07 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

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

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑