Classic Filaments Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹105.00₹0.00 (0.00%)

DalalBaazaar Score

34 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Classic Filaments Limited engages in the wholesale in textiles business in India. It offers information technologies services. Classic Filaments Limited was incorporated in 1990 and is based in Surat, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees2

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 -2.8% 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%

DalalBaazaar Score

34/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

26/ 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

145.8x

Sector Median

69.2x

median of 4 sector peers

⚠️Against its sector it trades 111% above the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

69.2x median of 4 peers · +111%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

—

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 851% over 3 years, from ₹0 Cr to ₹0 Cr.
🔴High leverageFinancial
Debt/Equity of 6.88x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.98 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 6.88x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 111% above the peer median. That premium needs a reason that persists, or it closes.
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.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
2ROCE stays above 8%✗ -2.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

1 / 10 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)
✗ 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

1 good · 3 neutral · 7 weak

Market Cap

₹92 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

145.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.99x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.72

Profitable

Profitable on a per-share basis

ROE

-2.8%

Weak

Weak capital efficiency

ROCE

-2.8%

Weak

Low return on total capital employed

Debt/Equity

6.88x

High

High leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

-41.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

8.3%

Average

Average margins

Net Margin

4.2%

Average

Average bottom-line conversion

Current Ratio

0.98

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.57

Defensive

Steadier than the market

52W Range Position

94%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

97.8 / 71.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

52.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹-0.16	₹-0.16	₹-0.18	₹-0.25	—
ROE	-1.7%	-1.7%	-1.9%	-2.8%	—
ROCE	-1.7%	-1.7%	-1.9%	-2.8%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+111.8%
Free Cash Flow	-₹1 Cr	-₹0 Cr	-₹1 Cr	-₹0 Cr	—

🔴 ROE has fallen from -1.7% to -2.8% over 3 years (-1.1 pts).

🔴 ROCE has fallen from -1.7% to -2.8% over 3 years (-1.1 pts).

🔴 Total Debt has grown at 111.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.9%

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 positive5 general

Classic Filaments Ltd. Upper Circuit Streak: Day 3 Price and Data

Univest, 23 Sept

Classic Filaments lists 26.94 lakh preferential shares on BSE

scanx.trade, 24 Sept

Classic Filaments Limited Approves Change of Address

www.marketscreener.com, 28 Sept

52 Week High Shares BSE | 52 Week High Today | Shares Trading 52 Week High BSE

Livemint, 16 Oct

Classic Filaments approves office shift to Haryana with 100% votes

scanx.trade, 28 Sept

AGI Greenpac consolidated net profit rises 11.82% in the June 2026 quarter

Business Standard, 29 JulResults

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

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingGrowth · Risk

WeakBusiness Quality · Financial Health · Profitability · Valuation

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