Delta Manufacturing Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹56.80+₹0.01 (+0.02%)

DalalBaazaar Score

24 / 100

🔴 Weak

Verdict

HIGH RISK

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 company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Delta Manufacturing Limited manufactures and sells hard ferrites, soft ferrites, textile woven labels, heat transfer labels, fabric printed labels, and elastic/woven tape in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees251

Annual revenue₹62 Cr

How does it make money?

Turns over ₹62 Cr a year. Of every ₹100 of sales, about ₹-20 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 251 employees supports ₹24.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹24.6 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 -3.8% 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%

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 -22% while net margin moved -5% 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-22%

Margin effect-5%

DalalBaazaar Score

24/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 8.0% a year
✗ Profit fell 2.6% in the latest year

Quality vs. Valuation

Company Quality

22/ 100

Weak

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

Valuation

20/ 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

33.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -8.6% to 4.8% over 3 years.
Return on capital is rising
ROCE has improved from -23.4% to -3.8%.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from -44.6% to -538.2% — each rupee of shareholder capital earns less than it did.

Red Flags

6 items require attention · 4 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 17.33x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.7x — little room if earnings dip.
🔴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 -₹12 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.9x to -0.7x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.50 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -8.6% to 4.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 13.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from -44.6% to -538.2%. 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.
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

1EBITDA margin holds above 3%✓ 4.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 13.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -0.7x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -3.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

1 good · 2 neutral · 8 weak

Market Cap

₹62 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

26.67x

Rich

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

EPS (TTM)

₹-2.72

Loss-making

Negative earnings per share — the business is losing money

ROE

-538.2%

Weak

Weak capital efficiency

ROCE

-3.8%

Weak

Low return on total capital employed

Debt/Equity

17.33x

High

High leverage

Revenue Growth (YoY)

33.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-2.6%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

3.8%

Weak

Thin margins leave little room for error

Net Margin

-15.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.50

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

55.8 / 56.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹80 Cr	₹67 Cr	₹56 Cr	₹62 Cr	-8.0%
EBITDA	-₹7 Cr	-₹1 Cr	₹6 Cr	₹3 Cr	—
EBITDA Margin	-8.6%	-1.5%	10.0%	4.8%	—
PAT (Net Profit)	-₹17 Cr	-₹10 Cr	-₹12 Cr	-₹12 Cr	—
EPS	₹-15.43	₹-9.57	₹-11.14	₹-11.44	—
ROE	-44.6%	-38.7%	-82.8%	-538.2%	—
ROCE	-23.4%	-14.4%	8.4%	-3.8%	—
Total Debt	₹40 Cr	₹40 Cr	₹28 Cr	₹40 Cr	-0.2%
Free Cash Flow	-₹5 Cr	-₹0 Cr	-₹1 Cr	-₹11 Cr	—

🔴 Revenue has shrunk at 8.0% a year over 3 years.

🟢 EBITDA has turned positive, from -₹7 Cr to ₹3 Cr.

🟢 EBITDA Margin has risen from -8.6% to 4.8% over 3 years (+13.4 pts).

🔴 ROE has fallen from -44.6% to -538.2% over 3 years (-493.6 pts).

🟢 ROCE has risen from -23.4% to -3.8% over 3 years (+19.7 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.2% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹68 Cr

Total Liabilities

₹66 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.0%

Corporate Actions

Ex-Dividend Date

10 Aug 2001

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

6 general

Delta Manufacturing (DELTAMAGNT.NS) Slips 2% to ₹55.12 as Stock Drifts Toward Key Support - Channel Breakout

https://www.siam.in/, 14 Oct

Delta Manufacturing Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 22 Sept

Delta Manufacturing Ltd leads gainers in 'B' group

Business Standard, 28 Jul

Delta Manufacturing Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Top Volume Gainers, July 28, 2026, 3:30 PM IST

HDFC Sky, 28 Jul

Delta Manufacturing shareholders approve FY26 financials at 44th AGM

scanx.trade, 30 Sept

Watch Items

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

DalalBaazaar Thesis

MiddlingRisk

WeakBusiness Quality · Financial Health · Growth · 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.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑