Cantabil Retail India Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹250.80+₹0.89 (+0.36%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Cantabil Retail India Limited engages in designing, manufacturing, branding, and retailing of apparel and apparel accessories in India.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees3,692

Annual revenue₹851 Cr

How does it make money?

Turns over ₹851 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 3,692 employees supports ₹23.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin32.2%

Net margin11.2%

Revenue / employee₹23.1 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?Some evidence

ROCE of 17.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.5%

ROE20.0%

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 +54% while net margin moved -8% 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+54%

Margin effect-8%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.14x is on the heavy side
✓ Current ratio of 2.42 — short-term bills are well covered
✓ Free cash flow is positive — the business funds its own capex
• Interest cover of 3.6x is adequate
✗ Debt has grown 23.9% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

70/ 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

21.5x

3Y Median

29.2x

40 monthly readings · mean 28.9x · range 20.2x–38.2x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 26% below its 3y median of 29.2x. 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 69% below the peer median of 69.2x.

vs. its own history

Cheap

29.2x median over 40 months · -26%

vs. sector peers

Cheap

69.2x median of 4 peers · -69%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.5x

P/B

4.38x

EV/EBITDA

9.6x

PEG

1.72

Dividend Yield

0.60%

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 225% over 3 years.
Valuation below its historical average
At 21.5x the stock trades 26% below its own median of 29.2x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 90% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 30.4% to 20.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.4% to 17.5% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 90% over 3 years, from ₹286 Cr to ₹544 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 26% 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 69% 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?

Returns on shareholder capital are falling
ROE has dropped from 30.4% to 20.0%. 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 12% a year✓ 15.5% CAGR
Latest reported year was 12.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 32.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✓ 3.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹133 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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

6 good · 5 neutral · 0 weak

Market Cap

₹2,098 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.5x

Fair

Fairly valued against the generic band

P/B Ratio

4.38x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.66

Profitable

Profitable on a per-share basis

ROE

20.0%

Strong

Strong capital efficiency

ROCE

17.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.14x

Moderate

Moderate leverage

Revenue Growth (YoY)

12.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.60%

Modest

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

Free Cash Flow

₹133 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹250.8

Operating Margin

17.6%

Good

Healthy core-business profitability

Net Margin

11.2%

Good

Strong bottom-line conversion

Current Ratio

2.42

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

236.7 / 237.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

63.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹552 Cr	₹615 Cr	₹720 Cr	₹851 Cr	+15.5%
EBITDA	₹170 Cr	₹167 Cr	₹212 Cr	₹274 Cr	+17.3%
EBITDA Margin	30.7%	27.2%	29.5%	32.2%	—
PAT (Net Profit)	₹67 Cr	₹62 Cr	₹75 Cr	₹96 Cr	+12.5%
EPS	₹8.24	₹7.6	₹8.95	₹11.45	+11.6%
ROE	30.4%	19.1%	19.0%	20.0%	—
ROCE	24.4%	16.7%	17.0%	17.5%	—
Total Debt	₹286 Cr	₹336 Cr	₹411 Cr	₹544 Cr	+23.9%
Free Cash Flow	₹41 Cr	₹78 Cr	₹102 Cr	₹133 Cr	+48.2%

🟢 Revenue has grown at 15.5% a year over 3 years.

🟢 EBITDA has grown at 17.3% a year over 3 years.

🟢 EBITDA Margin has risen from 30.7% to 32.2% over 3 years (+1.5 pts).

🟢 PAT (Net Profit) has grown at 12.5% a year over 3 years.

🟢 EPS has grown at 11.6% a year over 3 years.

🔴 ROE has fallen from 30.4% to 20.0% over 3 years (-10.3 pts).

🔴 ROCE has fallen from 24.4% to 17.5% over 3 years (-6.9 pts).

🔴 Total Debt has grown at 23.9% a year over 3 years.

🟢 Free Cash Flow has grown at 48.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,150 Cr

Total Liabilities

₹672 Cr

Total Debt

₹544 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

₹199 Cr

Capex

-₹67 Cr

Shareholding (proxy)

Institutional Holding

3.7%

Insider Holding

74.5%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

28 Aug 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

1 positive1 mixed1 negative3 general

If EPS Growth Is Important To You, Cantabil Retail India (NSE:CANTABIL) Presents An Opportunity

Simply Wall Street, 03 Jul

Cantabil Retail India Ltd is Rated Sell

MarketsMojo, 16 Oct

Why Is Cantabil Retail India Share Price Falling: Key Reasons and Investor Analysis 2026

Univest, 07 MayPrice 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.

Cantabil Retail India Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Cantabil Retail India standalone net profit rises 29.85% in the March 2026 quarter

Business Standard, 18 MayResults

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

Cantabil Retail India Promoter Confirms No Share Encumbrance or Pledge for FY Ended March 31, 2026

scanx.trade, 11 MayOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong13.1/20

🟡Financial HealthAdequate12.3/20

🟢GrowthStrong15.8/20

🟢ProfitabilityStrong10.4/15

🟢ValuationAttractive10.7/15

🟡RiskModerate6.2/10

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 12% a year15.5% CAGR
✓EBITDA margin holds above 30%32.2%
✓Interest cover stays above 3x3.6x
✓Free cash flow remains positive₹133 Cr
✓Debt / EBITDA stays below 2x2.0x