BSL Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹123.21−₹0.36 (−0.29%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Debt is 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 BSL Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

BSL Limited, a textile company, engages in the manufacture and sale of various yarns and fabrics in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees427

Annual revenue₹649 Cr

How does it make money?

Turns over ₹649 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 427 employees supports ₹1.52 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.2%

Net margin0.4%

Revenue / employee₹1.52 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.

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?Little sign of one

Returns on capital of 11.1% 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.

ROCE11.1%

ROE2.0%

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 +38% while net margin moved -90% 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+38%

Margin effect-90%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.0% is weak
✗ ROE has fallen by 14.3 points over the period

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

59/ 100

Fair

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

34.9x

3Y Median

16.0x

40 monthly readings · mean 19.6x · range 9.8x–53.7x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 119% above its 3y median of 16.0x. 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 50% below the peer median of 69.2x.

vs. its own history

Expensive

16.0x median over 40 months · +119%

vs. sector peers

Cheap

69.2x median of 4 peers · -50%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

34.9x

P/B

1.06x

EV/EBITDA

12.1x

PEG

—

Dividend Yield

0.65%

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 11.1% to 7.2% over 3 years.
Debt is rising
Total debt is up 27% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 16.2% to 2.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.6% to 11.1% — often a sign of competition or overexpansion.
Valuation above its historical average
At 34.9x the stock trades 119% above its own median of 16.0x.

Red Flags

5 items require attention · 2 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 3.66x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🟡Debt is increasingFinancial
Total debt is up 27% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 86% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.0 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 50% 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?

Margins are being competed away
EBITDA margin has fallen from 11.1% to 7.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 9.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 119% 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 16.2% to 2.0%. 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 9% a year✓ 11.4% CAGR
Latest reported year was 7.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 9.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹10 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹127 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.06x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.53

Profitable

Profitable on a per-share basis

ROE

2.0%

Weak

Weak capital efficiency

ROCE

11.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.66x

High

High leverage

Revenue Growth (YoY)

7.4%

Modest

Modest growth

Profit Growth (YoY)

271.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.65%

Modest

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

Free Cash Flow

₹10 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹123.21

P/E (Forward)

118.5x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

5.7%

Average

Average margins

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.06

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

121.0 / 121.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

64.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹470 Cr	₹657 Cr	₹658 Cr	₹649 Cr	+11.4%
EBITDA	₹52 Cr	₹63 Cr	₹57 Cr	₹47 Cr	-3.7%
EBITDA Margin	11.1%	9.6%	8.6%	7.2%	—
PAT (Net Profit)	₹17 Cr	₹11 Cr	₹8 Cr	₹2 Cr	-48.0%
EPS	₹16.43	₹10.91	₹7.93	₹2.31	-48.0%
ROE	16.2%	10.0%	6.8%	2.0%	—
ROCE	14.6%	16.5%	14.5%	11.1%	—
Total Debt	₹346 Cr	₹437 Cr	₹421 Cr	₹439 Cr	+8.3%
Free Cash Flow	-₹148 Cr	-₹62 Cr	₹45 Cr	₹10 Cr	—

🟢 Revenue has grown at 11.4% a year over 3 years.

🔴 EBITDA has shrunk at 3.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.1% to 7.2% over 3 years (-4.0 pts).

🔴 PAT (Net Profit) has shrunk at 48.0% a year over 3 years.

🔴 EPS has shrunk at 48.0% a year over 3 years.

🔴 ROE has fallen from 16.2% to 2.0% over 3 years (-14.3 pts).

🔴 ROCE has fallen from 14.6% to 11.1% over 3 years (-3.5 pts).

🔴 Total Debt has grown at 8.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹148 Cr to ₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹640 Cr

Total Liabilities

₹520 Cr

Total Debt

₹439 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹49 Cr

Capex

-₹39 Cr

Shareholding (proxy)

Institutional Holding

1.0%

Insider Holding

68.3%

Corporate Actions

Dividend Rate

₹0.8

Ex-Dividend Date

21 Aug 2025

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

3 mixed3 general

BlueScope Steel (ASX:BSL) Shares Could Be 13% Below Fair Value

Yahoo Finance, 16 Oct

Why Is BSL Share Price Falling Key Reasons 2026

Univest, 10 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

BSL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

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

BlueScope Steel (ASX:BSL) Share Price Advances After FY26 Results and Capital Return Update

Kalkine, 19 AugResults

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

Blackstone Senior Floating Rate 2027 Term Fund (BSL) - Live Price & How to Invest from India

INDmoney, 23 May

BlueScope Steel (ASX:BSL) Shares Trail A Profit Rebound And 4.8% Margin Reset

Simply Wall Street, 18 Aug

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate9/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair7.5/15

🔴RiskHigh4.3/10

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

This thesis breaks if

✓Revenue growth stays above 9% a year11.4% CAGR
✓EBITDA margin holds above 5%7.2%
✗Debt / EBITDA falls below 3x9.4x
✗Interest cover stays above 3x1.1x
✓Free cash flow remains positive₹10 Cr