Celebrity Fashions Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹6.39+₹0.11 (+1.75%)

DalalBaazaar Score

30 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Celebrity Fashions Limited manufactures and exports garments in India and internationally. The company offers shirts, t-shirts, sweaters, shackets, trousers, shorts, and denims for men and boys under the Indian Terrain brand.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees1,713

Annual revenue₹168 Cr

How does it make money?

Turns over ₹168 Cr a year. Of every ₹100 of sales, about ₹-9 reaches shareholders as profit, with ₹-4 left at the operating level before interest, tax and depreciation. Each of its 1,713 employees supports ₹9.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹9.8 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -43.1% 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.

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 -53% while net margin moved -641% 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-53%

Margin effect-641%

DalalBaazaar Score

30/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 186.4 points over the period

Quality vs. Valuation

Company Quality

29/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 21% over 3 years.
Cash generation is improving
Free cash flow is up 237% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 23.0% to -163.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.6% to -43.1% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 6.05x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -2.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹16 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.6 points, from 5.6% to -4.0%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -2.8x to -2.2x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.97 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 21% 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?

Margins are being competed away
EBITDA margin has fallen from 5.6% to -4.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 6.05x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 23.0% to -163.4%. 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.
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 -6%✓ -4.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -2.2x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹31 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -43.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

2 good · 3 neutral · 6 weak

Market Cap

₹41 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

3.47x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-1.91

Loss-making

Negative earnings per share — the business is losing money

ROE

-163.4%

Weak

Weak capital efficiency

ROCE

-43.1%

Weak

Low return on total capital employed

Debt/Equity

6.05x

High

High leverage

Revenue Growth (YoY)

-35.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

13.9%

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

₹31 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-6.9%

Weak

Thin margins leave little room for error

Net Margin

-7.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.97

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.4 / 6.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹356 Cr	₹341 Cr	₹159 Cr	₹168 Cr	-22.1%
EBITDA	₹20 Cr	₹17 Cr	-₹7 Cr	-₹7 Cr	—
EBITDA Margin	5.6%	5.0%	-4.6%	-4.0%	—
PAT (Net Profit)	₹6 Cr	₹2 Cr	-₹18 Cr	-₹16 Cr	—
EPS	₹1.19	₹0.34	₹-3.22	₹-2.63	—
ROE	23.0%	5.4%	-88.9%	-163.4%	—
ROCE	23.6%	16.3%	-44.7%	-43.1%	—
Total Debt	₹74 Cr	₹62 Cr	₹68 Cr	₹58 Cr	-7.7%
Free Cash Flow	₹9 Cr	₹28 Cr	₹3 Cr	₹31 Cr	+50.0%

🔴 Revenue has shrunk at 22.1% a year over 3 years.

🔴 EBITDA has turned negative, from ₹20 Cr to -₹7 Cr.

🔴 EBITDA Margin has fallen from 5.6% to -4.0% over 3 years (-9.6 pts).

🔴 PAT (Net Profit) has turned negative, from ₹6 Cr to -₹16 Cr.

🔴 EPS has turned negative, from ₹1.19 to ₹-2.63.

🔴 ROE has fallen from 23.0% to -163.4% over 3 years (-186.4 pts).

🔴 ROCE has fallen from 23.6% to -43.1% over 3 years (-66.7 pts).

🟢 Total Debt has shrunk at 7.7% a year over 3 years.

🟢 Free Cash Flow has grown at 50.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹112 Cr

Total Liabilities

₹102 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹31 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

5.4%

Insider Holding

56.4%

Corporate Actions

Ex-Dividend Date

30 Aug 2006

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

Celebrity Fashions Share Price Forecast: 3 Year Outlook to 2030

Univest, 15 Jul

Celebrity Fashions discloses voting results of 37th AGM

scanx.trade, 01 OctResults

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

Compare with CELEBRITY FASHIONS

Equitymaster, 21 Sept

Celebrity Fashions Q2 FY27 Update

Univest, 17 SeptResults

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

Celebrity Fashions FY26 Results: Net loss narrows 14% to ₹15.72 crore

scanx.trade, 08 SeptResults

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

Get These Celebrity Fall Looks at a Fraction of the Price

TODAY.com, 09 Oct

Watch Items

Revenue growth is negative (-35.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial 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. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑