Birla Cotsyn (India) Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹16.10+₹0.03 (+0.19%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company is currently losing money, 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, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Birla Cotsyn (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Birla Cotsyn (India) Limited manufactures and sells cotton ring spun yarn, open end yarn, and synthetic blended yarn in India. The company offers ring spinning cotton yarns, weaving and knitting yarns, and ring spinning dyed yarns.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees5

Annual revenue₹59 Cr

How does it make money?

Turns over ₹59 Cr a year. Of every ₹100 of sales, about ₹-33 reaches shareholders as profit, with ₹-17 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹11.73 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11.73 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 -41.5% 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%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

30/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 95% over 2 years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from -2.4% to -41.5% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.30x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -10.3x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹19 Cr in the latest reported year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1405% over 2 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.53 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 95% over 2 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.30x. Interest is payable whether or not the business has a good year.
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
4 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

1EBITDA margin holds above -19%✓ -17.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹21 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -10.3x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -41.5%
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

3 good · 2 neutral · 6 weak

Market Cap

₹426 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.09x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-10.64

Loss-making

Negative earnings per share — the business is losing money

ROE

-116.1%

Weak

Weak capital efficiency

ROCE

-41.5%

Weak

Low return on total capital employed

Debt/Equity

2.30x

High

High leverage

Revenue Growth (YoY)

51183.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

91.1%

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

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-12.3%

Weak

Thin margins leave little room for error

Net Margin

-179.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.53

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.17

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

14.8 / 17.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

69.2

Neutral momentum

Financial Trend (3-Year)

Metric	FY24	FY25	FY26	2Y CAGR
EBITDA	-₹1 Cr	—	-₹10 Cr	—
PAT (Net Profit)	-₹7 Cr	-₹215 Cr	-₹19 Cr	—
EPS	—	₹-149.76	₹-0.72	—
ROE	—	-602.1%	-116.1%	—
ROCE	-2.4%	-380.8%	-41.5%	—
Total Debt	₹693 Cr	₹22 Cr	₹38 Cr	-76.6%
Free Cash Flow	-₹4 Cr	-₹205 Cr	-₹21 Cr	—

🟢 ROE has risen from -602.1% to -116.1% over 2 years (+486.0 pts).

🔴 ROCE has fallen from -2.4% to -41.5% over 2 years (-39.1 pts).

🟢 Total Debt has shrunk at 76.6% a year over 2 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹67 Cr

Total Liabilities

₹51 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

94.6%

Corporate Actions

Ex-Dividend Date

26 Aug 2010

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

Birla Cotsyn (India) Ltd. Share Price Live Today

CNBC TV18, 16 Oct

Birla Cotsyn (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Birla Cotsyn trading to resume from July 15, 2026

scanx.trade, 15 Jul

Birla Cotsyn (India) Ltd. 52 Week Low Streak Extends Again

Univest, 30 Sept

Birla Cotsyn Trading Suspension Revoked, Resumes July 15, 2026

Whalesbook, 11 Jul

Birla Cotsyn (India) Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Watch Items

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

DalalBaazaar Thesis

MiddlingGrowth · Valuation

WeakBusiness Quality · Financial Health · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑