Betex India Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹470.00−₹15.70 (−3.23%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, 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 Betex India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Betex India Limited engages in textile processing business in India. The company is involved in the dyeing and printing of art silk cloth and polyester fabrics. Betex India Limited was incorporated in 1987 and is based in Surat, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees993

Annual revenue₹100 Cr

How does it make money?

Turns over ₹100 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 993 employees supports ₹10.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹10.1 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?Some evidence

ROCE of 19.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +35% while net margin moved +34% 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+35%

Margin effect+34%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.97 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

86/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

11.4x

3Y Median

17.5x

40 monthly readings · mean 19.5x · range 6.1x–45.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 17.5x. 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 84% below the peer median of 69.2x.

vs. its own history

Cheap

17.5x median over 40 months · -35%

vs. sector peers

Cheap

69.2x median of 4 peers · -84%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.0x

PEG

0.53

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 7.1% to 10.2% over 3 years.
Return on capital is rising
ROCE has improved from 15.4% to 19.8%.
Very low debt
Debt/Equity of 0.28x leaves the balance sheet with plenty of headroom.
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 · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 375% over 3 years, from ₹2 Cr to ₹12 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 154% against revenue up 35% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 7.1% to 10.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 35% 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 84% 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?

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 8% a year✓ 10.4% CAGR
Latest reported year was 8.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.8%
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

5 good · 5 neutral · 1 weak

Market Cap

₹71 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.4x

Cheap

Cheap against the generic band

P/B Ratio

1.66x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹41.17

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

19.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

8.1%

Modest

Modest growth

Profit Growth (YoY)

2325.0%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-0.4%

Weak

Thin margins leave little room for error

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

2.10

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.97

Market-like

Moves roughly in line with the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

498.9 / 491.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹75 Cr	₹89 Cr	₹96 Cr	₹100 Cr	+10.4%
EBITDA	₹5 Cr	₹7 Cr	₹4 Cr	₹10 Cr	+24.2%
EBITDA Margin	7.1%	7.4%	4.6%	10.2%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹2 Cr	₹6 Cr	+21.6%
EPS	₹21.07	₹22.17	₹13.03	₹37.93	+21.6%
ROE	11.0%	10.3%	5.7%	13.8%	—
ROCE	15.4%	16.8%	9.8%	19.8%	—
Total Debt	₹2 Cr	₹4 Cr	₹8 Cr	₹12 Cr	+68.1%
Free Cash Flow	₹7 Cr	₹10 Cr	-₹4 Cr	-₹1 Cr	—

🟢 Revenue has grown at 10.4% a year over 3 years.

🟢 EBITDA has grown at 24.2% a year over 3 years.

🟢 EBITDA Margin has risen from 7.1% to 10.2% over 3 years (+3.0 pts).

🟢 PAT (Net Profit) has grown at 21.6% a year over 3 years.

🟢 EPS has grown at 21.6% a year over 3 years.

🟢 ROE has risen from 11.0% to 13.8% over 3 years (+2.8 pts).

🟢 ROCE has risen from 15.4% to 19.8% over 3 years (+4.3 pts).

🔴 Total Debt has grown at 68.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹7 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹64 Cr

Total Liabilities

₹23 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.3%

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 mixed5 general

Betex India closes trading window from Oct 1 for Q2FY27 results

scanx.trade, 26 SeptResults

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

Betex India Ltd is Rated Sell

MarketsMojo, 09 Oct

Betex India schedules 39th AGM on Sept 30, sets book closure dates

scanx.trade, 30 Sept

BETEX INDIA LTD. Share Price

Upstox, 05 Apr

Betex India schedules board meeting to consider director re-appointment and AGM

scanx.trade, 27 Aug

Fiberweb (India) (NSEI:FIBERWEB) - Stock Analysis

Simply Wall Street, 03 Nov

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑