Bhilwara Spinners Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹116.00−₹0.85 (−0.73%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, 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 both sales and profits growing well. Debt is 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 Bhilwara Spinners Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bhilwara Spinners Limited engages in spinning, weaving, and finishing of textiles in India. It offers plain, Lycra, linen, checks, premium, and fancy products. The company was incorporated in 1980 and is based in Bhilwara, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees2

Annual revenue₹74 Cr

How does it make money?

Turns over ₹74 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹37.24 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹37.24 Cr

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 7.3% 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 +7576% while net margin moved -98% 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+7576%

Margin effect-98%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 2.07x is high — earnings must service borrowings before shareholders see anything
• Current ratio of 1.08 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 1.4x — little room if profits dip

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

78/ 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

11.7x

3Y Median

59.1x

40 monthly readings · mean 50.4x · range 14.3x–84.8x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 80% below its 3y median of 59.1x. 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 83% below the peer median of 69.2x.

vs. its own history

Cheap

59.1x median over 40 months · -80%

vs. sector peers

Cheap

69.2x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

15.8x

PEG

0.50

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 11.7% to 7.3% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 5 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.07x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🔴Free cash flow negative for 4 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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 17.7 points, from 35.4% to 17.7%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 4.1x to 1.4x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 34% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 80% 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 83% 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 35.4% to 17.7%. 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 7.9x 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
5 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 244% a year✓ 325.0% CAGR
Latest reported year was 1167.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 7.9x
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✗ -₹25 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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 · 4 neutral · 3 weak

Market Cap

₹105 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.7x

Cheap

Cheap against the generic band

P/B Ratio

2.09x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.88

Profitable

Profitable on a per-share basis

ROE

9.8%

Moderate

Moderate capital efficiency

ROCE

7.3%

Weak

Low return on total capital employed

Debt/Equity

2.07x

High

High leverage

Revenue Growth (YoY)

1167.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

183.6%

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

-₹25 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

9.2%

Average

Average margins

Net Margin

8.5%

Average

Average bottom-line conversion

Current Ratio

1.08

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

125.6 / 128.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹9 Cr	₹25 Cr	₹74 Cr	+325.0%
EBITDA	₹0 Cr	₹1 Cr	₹3 Cr	₹13 Cr	+237.3%
EBITDA Margin	35.4%	7.6%	13.2%	17.7%	—
PAT (Net Profit)	₹3 Cr	₹2 Cr	₹2 Cr	₹5 Cr	+23.4%
EPS	₹3.86	₹1.92	₹1.91	₹5.42	+12.0%
ROE	9.7%	4.0%	3.8%	9.8%	—
ROCE	11.7%	2.3%	2.9%	7.3%	—
Total Debt	—	₹53 Cr	₹74 Cr	₹104 Cr	—
Free Cash Flow	-₹1 Cr	-₹70 Cr	-₹21 Cr	-₹25 Cr	—

🟢 Revenue has grown at 325.0% a year over 3 years.

🟢 EBITDA has grown at 237.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 35.4% to 17.7% over 3 years (-17.7 pts).

🟢 PAT (Net Profit) has grown at 23.4% a year over 3 years.

🟢 EPS has grown at 12.0% a year over 3 years.

🟡 ROE has held roughly flat at 9.8% over 3 years.

🔴 ROCE has fallen from 11.7% to 7.3% over 3 years (-4.4 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹159 Cr

Total Liabilities

₹109 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹29 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.8%

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 positive2 mixed2 general

Bhilwara Spinners Share Price analysis: valuation and peers

Univest, 15 Oct

Bhilwara Spinners adopts FY26 financials; details AGM voting results

scanx.trade, 24 SeptResults

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

Bhilwara Spinners FY26 Results: Net profit up 184% to ₹49.08 crore

scanx.trade, 25 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

SBI Cards & Payment Services standalone net profit rises 19.51% in the June 2026 quarter

Business Standard, 24 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Bajaj Electricals reports consolidated net loss of Rs 67.53 crore in the March 2026 quarter

Business Standard, 15 MayResults

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

Arka Defence & Locomotives (BSE:521036) - Stock Analysis

Simply Wall Street, 15 Aug

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality

WeakFinancial Health · Profitability · 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. 5 high-severity red flags sit above this conclusion and should be read first.

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