The Bombay Dyeing and Manufacturing Company Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹98.52+₹1.49 (+1.54%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, 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, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

The Bombay Dyeing and Manufacturing Company Limited manufactures and sells polyester staple fibre products in India and internationally. The company operates through three segments: Real Estate, Polyester, and Retail/Textile.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees467

Annual revenue₹1,448 Cr

How does it make money?

Turns over ₹1,448 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 467 employees supports ₹3.10 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.10 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 1.6% 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 -45% while net margin moved -110% 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-45%

Margin effect-110%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 18.3% a year
✗ Profit fell 49.3% in the latest year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

29/ 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

101.6x

2Y Median

4.8x

28 monthly readings · mean 14.4x · range 0.9x–87.9x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 2028% above its 2y median of 4.8x. 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 47% above the peer median of 69.2x.

vs. its own history

Expensive

4.8x median over 28 months · +2028%

vs. sector peers

Expensive

69.2x median of 4 peers · +47%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

69.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -2.4% to 2.0% over 3 years.
Debt is being paid down
Total debt is down 100% over 3 years.
Return on capital is rising
ROCE has improved from -6.8% to 1.6%.
Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 60.0x to 5.9x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹256 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -2.4% to 2.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 100% over 3 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?

The price already assumes success
The stock trades 2028% 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 0%✓ 2.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹256 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 1.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 5.9x
How much operating profit can fall before interest stops being comfortably covered.

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 · 3 neutral · 5 weak

Market Cap

₹2,035 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

101.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.89x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.97

Profitable

Profitable on a per-share basis

ROE

1.2%

Weak

Weak capital efficiency

ROCE

1.6%

Weak

Low return on total capital employed

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

8.7%

Modest

Modest growth

Profit Growth (YoY)

-49.3%

Falling

Profits are shrinking

Dividend Yield

0.41%

Modest

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

Free Cash Flow

-₹256 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-2.3%

Weak

Thin margins leave little room for error

Net Margin

1.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.59

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

103.5 / 109.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,652 Cr	₹1,668 Cr	₹1,581 Cr	₹1,448 Cr	-18.3%
EBITDA	-₹64 Cr	-₹7 Cr	₹63 Cr	₹29 Cr	—
EBITDA Margin	-2.4%	-0.4%	4.0%	2.0%	—
PAT (Net Profit)	-₹517 Cr	₹2,949 Cr	₹490 Cr	₹27 Cr	—
EPS	₹-25.02	₹142.77	₹23.73	₹1.3	—
ROE	—	157.3%	20.7%	1.2%	—
ROCE	-6.8%	193.0%	24.7%	1.6%	—
Total Debt	₹3,639 Cr	—	₹3 Cr	₹3 Cr	-90.5%
Free Cash Flow	₹851 Cr	₹246 Cr	-₹73 Cr	-₹256 Cr	—

🔴 Revenue has shrunk at 18.3% a year over 3 years.

🟢 EBITDA has turned positive, from -₹64 Cr to ₹29 Cr.

🟢 EBITDA Margin has risen from -2.4% to 2.0% over 3 years (+4.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹517 Cr to ₹27 Cr.

🟢 EPS has turned positive, from ₹-25.02 to ₹1.3.

🔴 ROE has fallen from 157.3% to 1.2% over 3 years (-156.2 pts).

🟢 ROCE has risen from -6.8% to 1.6% over 3 years (+8.5 pts).

🟢 Total Debt has shrunk at 90.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹851 Cr to -₹256 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,963 Cr

Total Liabilities

₹705 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

-₹182 Cr

Capex

-₹74 Cr

Shareholding (proxy)

Institutional Holding

0.9%

Insider Holding

56.0%

Corporate Actions

Dividend Rate

₹0.4

Ex-Dividend Date

31 Jul 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

2 positive1 mixed1 negative2 general

Bombay Dyeing and Manufacturing's (NSE:BOMDYEING) Problems Go Beyond Weak Profit

Simply Wall Street, 17 Jul

Bombay Dyeing And Manufacturing Company Ltd Q1 Results FY27: Date, Revenue Estimates and What to Expect

Univest, 01 JulResults

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

Bombay Dyeing And Manufacturing Company Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Bombay Dyeing & Manufacturing Company consolidated net profit rises 82.32% in the March 2026 quarter

Business Standard, 09 MayResults

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

Bombay Dyeing Q1 Profit Falls 49% to ₹7.1 Cr; Revenue Up 9%

HDFC Sky, 11 AugResults

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

Bombay Dyeing reports Q1FY26 revenue of ₹433.92 crore as net profit falls

scanx.trade, 11 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

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.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑