Borana Weaves Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹260.75−₹7.50 (−2.80%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Borana Weaves Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Borana Weaves Limited engages in the manufacture and sale of textiles in India. The company offers synthetic grey fabrics; yarn; microfilament woven fabrics; and greige polyester woven fabrics for apparel and garments, home textiles, and tent fabrics applications.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees812

Annual revenue₹389 Cr

How does it make money?

Turns over ₹389 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 812 employees supports ₹47.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin25.5%

Net margin16.6%

Revenue / employee₹47.9 lakh

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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.9% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE24.2%

ROE22.9%

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 +187% while net margin moved +38% 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+187%

Margin effect+38%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

86/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.0x

2Y Median

19.9x

19 monthly readings · mean 19.0x · range 10.6x–25.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 50% below its 2y median of 19.9x. 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 85% below the peer median of 69.2x.

vs. its own history

Cheap

19.9x median over 19 months · -50%

vs. sector peers

Cheap

69.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.0x

P/B

2.47x

EV/EBITDA

7.7x

PEG

0.17

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 19.4% to 25.5% over 3 years.
High return on capital employed
ROCE of 24.2% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 10.0x the stock trades 50% below its own median of 19.9x.
Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Debt is rising
Total debt is up 76% 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 67.6% to 22.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 48.1% to 24.2% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 219% against revenue growth of 187% — customers are taking longer to pay.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 76% over 3 years, from ₹41 Cr to ₹72 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹135 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 219% against revenue up 187% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.2% 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 19.4% to 25.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 50% 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 85% 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?

Sales are being booked faster than collected
Receivables are up 219% against revenue up 187%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 67.6% to 22.9%. 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.
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 32% a year✓ 42.1% CAGR
Latest reported year was 24.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 23%✓ 25.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹135 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 24.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹695 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.0x

Cheap

Cheap against the generic band

P/B Ratio

2.47x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹25.96

Profitable

Profitable on a per-share basis

ROE

22.9%

Strong

Strong capital efficiency

ROCE

24.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

24.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.8%

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

-₹135 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹260.75

Operating Margin

19.7%

Good

Healthy core-business profitability

Net Margin

16.9%

Good

Strong bottom-line conversion

Current Ratio

4.33

Comfortable

Healthy short-term liquidity

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

278.0 / 300.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹135 Cr	₹199 Cr	₹290 Cr	₹389 Cr	+42.1%
EBITDA	₹26 Cr	₹42 Cr	₹68 Cr	₹99 Cr	+55.6%
EBITDA Margin	19.4%	21.0%	23.4%	25.5%	—
PAT (Net Profit)	₹16 Cr	₹24 Cr	₹40 Cr	₹65 Cr	+58.3%
EPS	₹6.12	₹8.85	₹15.09	₹24.35	+58.5%
ROE	67.6%	49.5%	45.9%	22.9%	—
ROCE	48.1%	33.5%	42.9%	24.2%	—
Total Debt	₹41 Cr	₹71 Cr	₹61 Cr	₹72 Cr	+20.8%
Free Cash Flow	-₹15 Cr	-₹26 Cr	₹13 Cr	-₹135 Cr	—

🟢 Revenue has grown at 42.1% a year over 3 years.

🟢 EBITDA has grown at 55.6% a year over 3 years.

🟢 EBITDA Margin has risen from 19.4% to 25.5% over 3 years (+6.1 pts).

🟢 PAT (Net Profit) has grown at 58.3% a year over 3 years.

🟢 EPS has grown at 58.5% a year over 3 years.

🔴 ROE has fallen from 67.6% to 22.9% over 3 years (-44.7 pts).

🔴 ROCE has fallen from 48.1% to 24.2% over 3 years (-23.9 pts).

🔴 Total Debt has grown at 20.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹366 Cr

Total Liabilities

₹85 Cr

Total Debt

₹72 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹44 Cr

Capex

-₹179 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.4%

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

1 positive1 mixed4 general

Borana Weaves Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Borana Weaves Limited (BORANA.NS) Slips 1.89% to ₹272.95, Testing Key Support Zone - MFI Divergence

siam.in, 01 Oct

Market Might Still Lack Some Conviction On Borana Weaves Limited (NSE:BORANA) Even After 28% Share Price Boost

Simply Wall Street, 29 Jan

BORANA WEAVES LIMITED Share Price

Upstox, 05 May

Borana Weaves Q4 Profit Surges 58% to ₹172M as Revenue Hits ₹1B Mark

Sahi, 14 MayResults

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

Borana Weaves targets double production capacity, files Q4FY26 presentation

scanx.trade, 04 Jun

Watch Items

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

🟢Business QualityStrong15.2/20

🟢Financial HealthStrong13/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong10.4/15

🟢ValuationAttractive11.8/15

🔴RiskHigh2.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 32% a year42.1% CAGR
✓EBITDA margin holds above 23%25.5%
✗Free cash flow remains positive-₹135 Cr
✓Debt / EBITDA stays below 2x0.7x
✓ROCE stays above 21%24.2%