Dalmia Industrial Development Limited

Consumer Cyclical — Apparel Manufacturing · BSE

₹9.49+₹0.81 (+9.33%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dalmia Industrial Development Limited primarily engages in the wholesale trading of textile fibers. The company offers a range of designer embroidered and printed, traditional, and semi-embroidered sarees, as well as bridal suites.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation.

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 3.0% 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 +212% while net margin moved -44% 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+212%

Margin effect-44%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.3% is weak

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

43/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

189.8x

3Y Median

527.5x

40 monthly readings · mean 558.3x · range 158.2x–1530.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 64% below its 3y median of 527.5x. 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 174% above the peer median of 69.2x.

vs. its own history

Cheap

527.5x median over 40 months · -64%

vs. sector peers

Expensive

69.2x median of 4 peers · +174%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

29.6x

PEG

9.26

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -20.4% to 19.5% over 3 years.
Return on capital is rising
ROCE has improved from -1.0% to 3.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 4.3x to 1.2x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹7 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -20.4% to 19.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 64% 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.
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?

A premium to the sector to defend
It trades 174% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 35% a year✓ 46.1% CAGR
Latest reported year was -64.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 19.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 3.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

2 / 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
✓ 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

₹19 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

189.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.92x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.05

Profitable

Profitable on a per-share basis

ROE

0.3%

Weak

Weak capital efficiency

ROCE

3.0%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-64.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-34.5%

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

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-1.9%

Weak

Thin margins leave little room for error

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.19

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.01

Defensive

Steadier than the market

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.0 / 9.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹4 Cr	₹3 Cr	+46.1%
EBITDA	-₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	—
EBITDA Margin	-20.4%	2.7%	3.9%	19.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+20.5%
EPS	₹0.02	₹0.01	₹0.05	₹0.03	+14.5%
ROE	0.2%	0.1%	0.5%	0.3%	—
ROCE	-1.0%	0.1%	0.7%	3.0%	—
Free Cash Flow	₹1 Cr	₹2 Cr	-₹1 Cr	-₹7 Cr	—

🟢 Revenue has grown at 46.1% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -20.4% to 19.5% over 3 years (+39.9 pts).

🟢 PAT (Net Profit) has grown at 20.5% a year over 3 years.

🟢 EPS has grown at 14.5% a year over 3 years.

🟡 ROE has held roughly flat at 0.3% over 3 years.

🟢 ROCE has risen from -1.0% to 3.0% over 3 years (+4.1 pts).

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹31 Cr

Total Liabilities

₹10 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹7 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.1%

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 mixed5 general

Dalmia Bharat (NSEI:DALBHARAT) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

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

Dalmia Industrial Development shareholders pass all AGM resolutions

scanx.trade, 30 Sept

Dalmia Industrial Development Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Dalmia Industrial Development Ltd. Peer Comparison – Compare with Others

Value Research, 03 Sept

Dalmia Bharat Sugar Share Price Technicals and Market Cap

Univest, 17 Aug

‘Vikaas bhi, Viraasat bhi’: How Puneet Dalmia is reimagining a 84-year-old legacy for the next century

The Economic Times B2B, 08 Apr

Watch Items

Revenue growth is negative (-64.6%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingBusiness Quality · Growth · Valuation

WeakFinancial Health · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

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