Banswara Syntex Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹102.00−₹0.03 (−0.03%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, 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 modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Banswara Syntex Limited engages in the production and sale of textile products in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees12,596

Annual revenue₹1,327 Cr

How does it make money?

Turns over ₹1,327 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 12,596 employees supports ₹10.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹10.5 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 9.8% 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 -10% while net margin moved -69% 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-10%

Margin effect-69%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.5% a year
✗ Profit has declined at 34.8% a year

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

88/ 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

13.0x

40 monthly readings · mean 12.0x · range 4.3x–20.7x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 3y median of 13.0x. 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

13.0x median over 40 months · -28%

vs. sector peers

Cheap

69.2x median of 4 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 22.1% to 5.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.3% to 9.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 watch

🟡Debt is increasingFinancial
Total debt is up 27% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 72% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 3.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 28% 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.
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?

Margins are being competed away
EBITDA margin has fallen from 14.0% to 10.8%. 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 3.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 22.1% to 5.3%. 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.
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 9%✓ 10.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.3x
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✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹21 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 9.8%
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

4 good · 5 neutral · 2 weak

Market Cap

₹349 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

0.60x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹10.87

Profitable

Profitable on a per-share basis

ROE

5.5%

Weak

Weak capital efficiency

ROCE

9.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.81x

Moderate

Moderate leverage

Revenue Growth (YoY)

7.5%

Modest

Modest growth

Profit Growth (YoY)

96.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.98%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹31 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

3.9%

Average

Average asset productivity

Operating Margin

8.4%

Average

Average margins

Net Margin

2.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.39

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

106.0 / 112.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,478 Cr	₹1,242 Cr	₹1,267 Cr	₹1,327 Cr	-3.5%
EBITDA	₹206 Cr	₹115 Cr	₹115 Cr	₹144 Cr	-11.3%
EBITDA Margin	14.0%	9.3%	9.1%	10.8%	—
PAT (Net Profit)	₹113 Cr	₹36 Cr	₹22 Cr	₹31 Cr	-34.8%
EPS	₹32.93	₹10.38	₹6.47	₹9.11	-34.8%
ROE	22.1%	6.6%	4.0%	5.3%	—
ROCE	25.3%	10.1%	8.3%	9.8%	—
Total Debt	₹373 Cr	₹355 Cr	₹454 Cr	₹475 Cr	+8.4%
Free Cash Flow	-₹83 Cr	₹45 Cr	-₹67 Cr	₹21 Cr	—

🔴 Revenue has shrunk at 3.5% a year over 3 years.

🔴 EBITDA has shrunk at 11.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 14.0% to 10.8% over 3 years (-3.1 pts).

🔴 PAT (Net Profit) has shrunk at 34.8% a year over 3 years.

🔴 EPS has shrunk at 34.8% a year over 3 years.

🔴 ROE has fallen from 22.1% to 5.3% over 3 years (-16.8 pts).

🔴 ROCE has fallen from 25.3% to 9.8% over 3 years (-15.5 pts).

🔴 Total Debt has grown at 8.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹83 Cr to ₹21 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,272 Cr

Total Liabilities

₹687 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹118 Cr

Capex

-₹97 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.5%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

23 Jul 2026

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

Banswara Syntex: 7 Stock Signals to Watch

Univest, 22 Sept

Banswara Syntex Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

Banswara Syntex turns profitable in Q1FY27, plans ₹140 Cr capex

scanx.trade, 01 Aug

Banswara Syntex Ltd (NSE:BANSWRAS): A Simple Guide to Its Business and Se

Kalkine India, 14 Sept

Banswara Syntex: Best Stock in Its Sector? Key Metrics

Univest, 24 Sept

Banswara Syntex Reports Strong Q3FY26 Performance with 30% PAT Growth

scanx.trade, 10 Feb

Watch Items

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

DalalBaazaar Thesis

StrongValuation

WeakBusiness Quality · Financial Health · Growth · Profitability · Risk

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.

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