Bizotic Commercial Limited

Consumer Cyclical — Apparel Manufacturing · BSE

₹99.00−₹1.50 (−1.49%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, 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, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Bizotic Commercial Limited engages in the designing, manufacturing, marketing, and retailing of readymade garments under the URBAN UNITED and YARD brand in India.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Annual revenue₹250 Cr

How does it make money?

Turns over ₹250 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation.

EBITDA margin10.5%

Net margin7.2%

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?Some evidence

ROCE of 19.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.9%

ROE20.7%

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 +284% while net margin moved +75% 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+284%

Margin effect+75%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.37 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

62/ 100

Average

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

Valuation

58/ 100

Fair

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

31.0x

3Y Median

5.1x

40 monthly readings · mean 11.2x · range 2.0x–29.8x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 506% above its 3y median of 5.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 55% below the peer median of 69.2x.

vs. its own history

Expensive

5.1x median over 40 months · +506%

vs. sector peers

Cheap

69.2x median of 4 peers · -55%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

31.0x

P/B

4.77x

EV/EBITDA

21.9x

PEG

0.35

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 6.5% to 10.5% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Debt is rising
Total debt is up 88% over 3 years — worth checking what it funded.
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 31.9% to 15.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 39.5% to 19.9% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 371% against revenue growth of 284% — stock may not be moving.
Valuation above its historical average
At 31.0x the stock trades 506% above its own median of 5.1x.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 88% over 3 years, from ₹4 Cr to ₹8 Cr.
🔴High leverageFinancial
Debt/Equity of 6.95x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 371% against revenue up 284% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹45 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.9% 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 6.5% to 10.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 55% 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?

Leverage amplifies any setback
Debt/Equity of 6.95x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 506% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 31.9% to 15.5%. 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.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 42% a year✓ 56.6% CAGR
Latest reported year was 199.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹45 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.9%
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 · 4 neutral · 2 weak

Market Cap

₹573 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.0x

Fair

Fairly valued against the generic band

P/B Ratio

4.77x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.19

Profitable

Profitable on a per-share basis

ROE

20.7%

Strong

Strong capital efficiency

ROCE

19.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.95x

High

High leverage

Revenue Growth (YoY)

199.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

145.3%

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

-₹48 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹99

ROA

9.7%

Good

Assets are working hard

Operating Margin

7.8%

Average

Average margins

Net Margin

7.2%

Average

Average bottom-line conversion

Current Ratio

2.14

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.37

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

112.9 / 108.6

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹65 Cr	₹71 Cr	₹112 Cr	₹250 Cr	+56.6%
EBITDA	₹4 Cr	₹4 Cr	₹8 Cr	₹26 Cr	+83.8%
EBITDA Margin	6.5%	5.4%	7.2%	10.5%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹4 Cr	₹18 Cr	+88.8%
EPS	₹3.35	₹4.12	₹5.33	—	—
ROE	31.9%	5.6%	7.4%	15.5%	—
ROCE	39.5%	8.3%	11.4%	19.9%	—
Total Debt	₹4 Cr	₹2 Cr	₹4 Cr	₹8 Cr	+23.3%
Free Cash Flow	-₹4 Cr	-₹29 Cr	₹3 Cr	-₹45 Cr	—

🟢 Revenue has grown at 56.6% a year over 3 years.

🟢 EBITDA has grown at 83.8% a year over 3 years.

🟢 EBITDA Margin has risen from 6.5% to 10.5% over 3 years (+4.0 pts).

🟢 PAT (Net Profit) has grown at 88.8% a year over 3 years.

🔴 ROE has fallen from 31.9% to 15.5% over 3 years (-16.4 pts).

🔴 ROCE has fallen from 39.5% to 19.9% over 3 years (-19.6 pts).

🔴 Total Debt has grown at 23.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹214 Cr

Total Liabilities

₹97 Cr

Total Debt

₹8 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹40 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.1%

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 positive4 general

Bizotic Commercial Lower Circuit Streak: Day 2 Price and Data

Univest, 12 Oct

Compare with

Equitymaster, 16 Oct

Bizotic Commercial Board Approves 5-for-1 Bonus Share Issue and MD Re-appointment

Sahi, 02 Jul

Bizotic Commercial fixes Aug 17 as record date for 5:1 bonus issue

scanx.trade, 07 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Bonus issue alert! Last day to buy this multibagger smallcap clothing stock for 5:1 bonus reward. Do you o

The Economic Times, 14 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Bizotic Commercial board sets warrant price at ₹110, hikes capital to ₹71.50 crore

scanx.trade, 30 Sept

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak8.8/20

🟡Financial HealthAdequate9.9/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate9.3/15

🔴ValuationDemanding6.1/15

🔴RiskHigh3.7/10

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. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 42% a year56.6% CAGR
✓EBITDA margin holds above 9%10.5%
✗Free cash flow remains positive-₹45 Cr
✓Debt / EBITDA stays below 2x0.3x
✓ROCE stays above 17%19.9%