Blue Chip Tex Industries Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹118.00₹0.00 (0.00%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Blue Chip Tex Industries Limited engages in the manufacture and sale of synthetic yarns in India. It offers polyester texturised and twisted yarn. The company was incorporated in 1985 and is based in Mumbai, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees118

Annual revenue₹219 Cr

How does it make money?

Turns over ₹219 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 118 employees supports ₹1.86 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.86 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 1.3% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -13% while net margin moved -76% 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-13%

Margin effect-76%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.5% a year
✗ Profit has declined at 41.1% a year

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

37/ 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.

Historical Valuation

Current P/E

491.7x

3Y Median

49.6x

40 monthly readings · mean 54.7x · range 29.9x–124.2x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 892% above its 3y median of 49.6x. 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 611% above the peer median of 69.2x.

vs. its own history

Expensive

49.6x median over 40 months · +892%

vs. sector peers

Expensive

69.2x median of 4 peers · +611%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

8.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash generation is improving
Free cash flow is up 123% over 3 years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 5.6% to 1.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 80% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 892% 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.
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

1EBITDA margin holds above -1%✓ 1.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 1.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 49.6x✗ 491.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

₹23 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

491.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.87x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.24

Profitable

Profitable on a per-share basis

ROE

0.7%

Weak

Weak capital efficiency

ROCE

1.3%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

3.1%

Modest

Modest growth

Profit Growth (YoY)

118.6%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-1.8%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.07

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

115.0 / 116.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹252 Cr	₹255 Cr	₹249 Cr	₹219 Cr	-4.5%
EBITDA	₹4 Cr	₹4 Cr	₹1 Cr	₹3 Cr	-14.9%
EBITDA Margin	1.7%	1.5%	0.4%	1.2%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	-₹1 Cr	₹0 Cr	-41.1%
EPS	₹4.63	₹2.66	₹-5.11	₹0.95	-41.0%
ROE	3.3%	1.9%	-3.8%	0.7%	—
ROCE	5.6%	3.7%	-3.5%	1.3%	—
Total Debt	₹10 Cr	₹4 Cr	₹2 Cr	—	—
Free Cash Flow	₹2 Cr	₹4 Cr	₹2 Cr	₹4 Cr	+30.7%

🔴 Revenue has shrunk at 4.5% a year over 3 years.

🔴 EBITDA has shrunk at 14.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.2% over 3 years.

🔴 PAT (Net Profit) has shrunk at 41.1% a year over 3 years.

🔴 EPS has shrunk at 41.0% a year over 3 years.

🔴 ROE has fallen from 3.3% to 0.7% over 3 years (-2.6 pts).

🔴 ROCE has fallen from 5.6% to 1.3% over 3 years (-4.2 pts).

🟢 Free Cash Flow has grown at 30.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹34 Cr

Total Liabilities

₹7 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.1%

Corporate Actions

Ex-Dividend Date

17 Sept 2024

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

Bucharest stocks extend gains, Nuclearelectrica paces blue-chip gainers

SeeNews, 15 Oct

Blue Chip Tex shareholders approve new MOA and AOA at 41st AGM

scanx.trade, 23 Sept

Blue Chip Tex Industries (BSE:506981) Company Profile and Sector Overview

Kalkine India, 17 Sept

Bucharest stocks turn green, BRD paces blue-chip winners

SeeNews, 13 Oct

Counter Cyclical Investments reduces Blue Chip Tex stake to 5.62%

scanx.trade, 05 Sept

Diamonds in the dust? Retail investors unleash Rs 17,500 crore on 8 battered bluechip stocks

The Economic Times, 27 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · 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.

3 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8%; Valuation vs its own median of 49.6x · see Key things to watch ↑