Bhandari Hosiery Exports Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹2.84−₹0.02 (−0.70%)

DalalBaazaar Score

44 / 100

🟡 Moderate

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, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Bhandari Hosiery Exports Limited operates as a textile and garment manufacturing company in India.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees390

Annual revenue₹280 Cr

How does it make money?

Turns over ₹280 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 390 employees supports ₹71.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin9.8%

Net margin2.8%

Revenue / employee₹71.9 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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

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.

ROCE9.8%

ROE4.2%

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 -1% while net margin moved +21% 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-1%

Margin effect+21%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.3% a year
✗ Profit CAGR of only 6.1%
✗ Latest-year revenue growth of -19.3% is below the longer-term trend — momentum is fading
✗ Profit fell 40.7% in the latest year

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

81/ 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

10.9x

3Y Median

15.0x

40 monthly readings · mean 15.1x · range 6.5x–26.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 3y median of 15.0x. 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 84% below the peer median of 69.2x.

vs. its own history

Cheap

15.0x median over 40 months · -27%

vs. sector peers

Cheap

69.2x median of 4 peers · -84%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.9x

P/B

0.49x

EV/EBITDA

6.5x

PEG

1.79

Dividend Yield

0.35%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 8.0% to 9.8% over 3 years.
Valuation below its historical average
At 10.9x the stock trades 27% below its own median of 15.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 7.5% to 4.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.9% to 9.8% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 33% against revenue growth of -1% — customers are taking longer to pay.

Red Flags

3 items require attention · 1 high · 2 watch

🔴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.
🟡Receivables growing faster than salesFinancial
Receivables up 33% against revenue up -1% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 74% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.0% to 9.8%. 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 27% 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?

The debt load needs earnings to hold up
Debt is 3.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 33% against revenue up -1%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 7.5% to 4.2%. 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 8%✓ 9.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
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

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

4 good · 3 neutral · 4 weak

Market Cap

₹95 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.9x

Cheap

Cheap against the generic band

P/B Ratio

0.49x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.26

Profitable

Profitable on a per-share basis

ROE

4.2%

Weak

Weak capital efficiency

ROCE

9.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

-19.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-40.7%

Falling

Profits are shrinking

Dividend Yield

0.35%

Modest

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

Free Cash Flow

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹2.84

Operating Margin

8.2%

Average

Average margins

Net Margin

2.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2.9 / 2.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹283 Cr	₹267 Cr	₹279 Cr	₹280 Cr	-0.3%
EBITDA	₹23 Cr	₹25 Cr	₹28 Cr	₹27 Cr	+6.5%
EBITDA Margin	8.0%	9.2%	9.9%	9.8%	—
PAT (Net Profit)	₹7 Cr	₹7 Cr	₹8 Cr	₹8 Cr	+6.1%
EPS	₹0.38	₹0.37	₹0.31	₹0.32	-5.8%
ROE	7.5%	6.6%	5.0%	4.2%	—
ROCE	14.9%	13.0%	11.3%	9.8%	—
Total Debt	₹104 Cr	₹117 Cr	₹98 Cr	₹102 Cr	-0.8%
Free Cash Flow	₹9 Cr	-₹21 Cr	-₹27 Cr	-₹9 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.3% a year).

🟢 EBITDA has grown at 6.5% a year over 3 years.

🟢 EBITDA Margin has risen from 8.0% to 9.8% over 3 years (+1.8 pts).

🟢 PAT (Net Profit) has grown at 6.1% a year over 3 years.

🔴 EPS has shrunk at 5.8% a year over 3 years.

🔴 ROE has fallen from 7.5% to 4.2% over 3 years (-3.2 pts).

🔴 ROCE has fallen from 14.9% to 9.8% over 3 years (-5.1 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.8% a year).

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹318 Cr

Total Liabilities

₹134 Cr

Total Debt

₹102 Cr

Cash & Equivalents

₹19 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

17.2%

Insider Holding

31.7%

Corporate Actions

Dividend Rate

₹0.01

Ex-Dividend Date

08 Sept 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

Bhandari Hosiery CS Shilpa Tiwari resigns effective Oct 17, 2026

scanx.trade, 17 Oct

Bhandari Hosiery Exports Share: Bull Case vs Bear Case for 2026

Univest, 09 Sept

Bhandari Hosiery Exports accepts resignation of Company Secretary Shilpa Tiwari

scanx.trade, 13 Oct

Bhandari Hosiery Exports Share Price: Buy or Sell

Univest, 09 Sept

Sakuma Exports Ltd leads gainers in 'B' group

Business Standard, 02 Apr

FASCINATE Stock Price and Chart — NSE:FASCINATE

TradingView, 14 Aug

Watch Items

Revenue growth is negative (-19.3%) 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

🔴Business QualityWeak5.9/20

🟡Financial HealthAdequate9.7/20

🔴GrowthWeak5.7/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive13.2/15

🟡RiskModerate5.4/10

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

This thesis breaks if

✓EBITDA margin holds above 8%9.8%
✗Debt / EBITDA falls below 3x3.7x
✗Free cash flow remains positive-₹9 Cr
✗Interest cover stays above 3x2.0x
✓ROCE stays above 8%9.8%