Dollar Industries Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹275.00+₹2.05 (+0.75%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dollar Industries Limited manufactures and sells hosiery products in knitted inner wears, casual wears, and thermal wears in India and internationally.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees2,244

Annual revenue₹1,849 Cr

How does it make money?

Turns over ₹1,849 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 2,244 employees supports ₹82.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹82.4 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?Some evidence

ROCE of 16.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 9.4% and earnings to grow about 25.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.4%

Est. earnings growth+25.9%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +35% while net margin moved +51% 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+35%

Margin effect+51%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.32 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

81/ 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

13.9x

3Y Median

24.7x

40 monthly readings · mean 31.3x · range 13.9x–62.6x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 44% below its 3y median of 24.7x. 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 80% below the peer median of 69.2x.

vs. its own history

Cheap

24.7x median over 40 months · -44%

vs. sector peers

Cheap

69.2x median of 4 peers · -80%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.0x

PEG

0.52

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 7.2% to 11.1% over 3 years.
Return on equity is rising
ROE has improved from 7.4% to 11.3%.
Return on capital is rising
ROCE has improved from 11.0% to 16.5%.
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

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 66% over 3 years, from ₹175 Cr to ₹291 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.2% to 11.1%. 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 44% 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 80% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹95 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

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 8% a year✓ 10.6% CAGR
Latest reported year was 1.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹95 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹1,560 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.9x

Cheap

Cheap against the generic band

P/B Ratio

1.64x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹19.77

Profitable

Profitable on a per-share basis

ROE

11.3%

Moderate

Moderate capital efficiency

ROCE

16.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

1.4%

Modest

Modest growth

Profit Growth (YoY)

22.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.09%

Modest

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

Free Cash Flow

₹95 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

11.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.5%

Average

Average margins

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

2.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

275.1 / 272.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,367 Cr	₹1,548 Cr	₹1,681 Cr	₹1,849 Cr	+10.6%
EBITDA	₹98 Cr	₹161 Cr	₹188 Cr	₹205 Cr	+27.8%
EBITDA Margin	7.2%	10.4%	11.2%	11.1%	—
PAT (Net Profit)	₹53 Cr	₹90 Cr	₹91 Cr	₹107 Cr	+26.9%
EPS	₹9.26	₹15.9	₹16.05	₹18.94	+26.9%
ROE	7.4%	11.5%	10.6%	11.3%	—
ROCE	11.0%	16.8%	16.7%	16.5%	—
Total Debt	₹175 Cr	₹321 Cr	₹344 Cr	₹291 Cr	+18.5%
Free Cash Flow	₹80 Cr	-₹107 Cr	₹17 Cr	₹95 Cr	+5.9%

🟢 Revenue has grown at 10.6% a year over 3 years.

🟢 EBITDA has grown at 27.8% a year over 3 years.

🟢 EBITDA Margin has risen from 7.2% to 11.1% over 3 years (+3.9 pts).

🟢 PAT (Net Profit) has grown at 26.9% a year over 3 years.

🟢 EPS has grown at 26.9% a year over 3 years.

🟢 ROE has risen from 7.4% to 11.3% over 3 years (+3.9 pts).

🟢 ROCE has risen from 11.0% to 16.5% over 3 years (+5.5 pts).

🔴 Total Debt has grown at 18.5% a year over 3 years.

🟢 Free Cash Flow has grown at 5.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,545 Cr

Total Liabilities

₹590 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹139 Cr

Capex

-₹43 Cr

Shareholding (proxy)

Institutional Holding

2.1%

Insider Holding

73.7%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

28 Jul 2026

Analyst Consensus

Recommendations

1 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹387

+40.7% vs CMP

Target Range

₹323 – ₹451

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

2 positive1 mixed3 general

Dollar Industries (NSEI:DOLLAR) Stock Forecast & Analyst Predictions

Simply Wall Street, 12 AugAnalyst view

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

Dollar Industries Stock Signals to Watch This Week

Univest, 24 Sept

Dollar Industries (DOLLAR.NS) Rises 2.62% to ₹274.0, Nearing Resistance Zone - Option Breadth

https://www.siam.in/, 20 Sept

Dollar Industries consolidated net profit rises 22.05% in the June 2026 quarter

Business Standard, 10 AugResults

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

Dollar Industries Reports 12.7% Revenue Surge to ₹620 Cr; Eyes Price Hikes for Q1

Sahi, 25 MayResults

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

Dollar Industries to hold EGM on Jul 22 for composite scheme

scanx.trade, 18 Jun

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability · Risk

Points for each in the Score ↑

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.

All 5 tripwires holding · see Key things to watch ↑