Bang Overseas Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹31.00−₹0.51 (−1.62%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bang Overseas Limited, together with its subsidiaries, engages in the manufacture and trade of textile and textile products in India and internationally.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees282

Annual revenue₹220 Cr

How does it make money?

Turns over ₹220 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 282 employees supports ₹77.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹77.9 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 6.2% 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 +91% while net margin moved +171% 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+91%

Margin effect+171%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROCE of 6.2% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of 4.7% is thin — little cushion if costs rise
✗ Net margin of 2.0% is slim
• Revenue has compounded at 24.0% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

84/ 100

Cheap

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

9.1x

3Y Median

58.3x

40 monthly readings · mean 53.3x · range 7.1x–92.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 84% below its 3y median of 58.3x. 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 87% below the peer median of 69.2x.

vs. its own history

Cheap

58.3x median over 40 months · -84%

vs. sector peers

Cheap

69.2x median of 4 peers · -87%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.1x

PEG

0.13

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 1.2% to 6.4%.
Return on capital is rising
ROCE has improved from 4.1% to 6.2%.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 2 high

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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?

Priced below its own history
The stock trades 84% 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 87% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 18% a year✓ 24.0% CAGR
Latest reported year was 17.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 4.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.8x
How much operating profit can fall before interest stops being comfortably covered.

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

5 good · 2 neutral · 4 weak

Market Cap

₹42 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.1x

Cheap

Cheap against the generic band

P/B Ratio

0.45x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.39

Profitable

Profitable on a per-share basis

ROE

6.4%

Weak

Weak capital efficiency

ROCE

6.2%

Weak

Low return on total capital employed

Debt/Equity

0.44x

Low

Conservative leverage

Revenue Growth (YoY)

17.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-80.0%

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

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.9%

Weak

Thin margins leave little room for error

Net Margin

2.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

32.4 / 32.3

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹115 Cr	₹131 Cr	₹187 Cr	₹220 Cr	+24.0%
EBITDA	₹6 Cr	-₹5 Cr	-₹0 Cr	₹10 Cr	+16.7%
EBITDA Margin	5.6%	-3.9%	-0.3%	4.7%	—
PAT (Net Profit)	₹1 Cr	-₹8 Cr	-₹2 Cr	₹6 Cr	+72.9%
EPS	₹0.85	₹-6.18	₹-1.6	₹4.39	+72.9%
ROE	1.2%	-9.4%	-2.5%	6.4%	—
ROCE	4.1%	-7.5%	-2.6%	6.2%	—
Total Debt	₹33 Cr	₹30 Cr	₹26 Cr	₹41 Cr	+7.6%
Free Cash Flow	₹9 Cr	-₹16 Cr	-₹2 Cr	-₹13 Cr	—

🟢 Revenue has grown at 24.0% a year over 3 years.

🟢 EBITDA has grown at 16.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 4.7% over 3 years.

🟢 PAT (Net Profit) has grown at 72.9% a year over 3 years.

🟢 EPS has grown at 72.9% a year over 3 years.

🟢 ROE has risen from 1.2% to 6.4% over 3 years (+5.2 pts).

🟢 ROCE has risen from 4.1% to 6.2% over 3 years (+2.0 pts).

🔴 Total Debt has grown at 7.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹9 Cr to -₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹190 Cr

Total Liabilities

₹96 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹13 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.2%

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 positive2 mixed3 general

Bang Overseas Q2 2026 Earnings: Revenue Climbs 17.6% to ₹219.62 Crore as EPS Prints at ₹4.39 - Earnings Growth Analysis

www.siam.in, 16 OctResults

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

Bang Overseas: 7 Stock Signals to Watch

Univest, 22 Sept

Bang Overseas Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Bang Overseas Ltd Upgraded to Sell on Technical Improvements Despite Weak Fundamentals

MarketsMojo, 06 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Bang Overseas dispatches 34th AGM notice; e-voting starts Sept 25

scanx.trade, 29 Sept

Bang Overseas Share Price Target 2027 to 2030: Analyst Outlook

Univest, 17 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingProfitability

WeakBusiness Quality · 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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑