Enterprise International Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹21.50−₹1.00 (−4.44%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

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, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Enterprise International Limited trades in textile goods in India. The company offers silk fabrics, raw silk, tussah silk, thrown silk yarn, linen yarn, and polyester fabrics. It also trades in automobile parts; and processed and packed food items, as well as fruits and nuts.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees6

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹68.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹68.4 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?Little sign of one

Returns on capital of -0.2% 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 -37% while net margin moved -155% 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-37%

Margin effect-155%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 14.4% a year
✗ Latest-year revenue growth of -46.3% is below the longer-term trend — momentum is fading
✗ Profit fell 102.9% in the latest year

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

75/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

11.7x

3Y Median

53.8x

40 monthly readings · mean 75.1x · range 11.1x–220.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 78% below its 3y median of 53.8x. 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 83% below the peer median of 69.2x.

vs. its own history

Cheap

53.8x median over 40 months · -78%

vs. sector peers

Cheap

69.2x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

1469.4x

PEG

—

Red Flags

4 items require attention · 2 high · 2 watch

🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 38% against revenue up -37% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 2.6 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 78% 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 83% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 2.6% to 0.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 38% against revenue up -37%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
2 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 -2%✓ 0.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ -0.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 53.8x✓ 11.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹6 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.7x

Cheap

Cheap against the generic band

P/B Ratio

0.49x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.84

Profitable

Profitable on a per-share basis

ROE

4.1%

Weak

Weak capital efficiency

ROCE

-0.2%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-46.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-102.9%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

3.1%

Average

Average asset productivity

Operating Margin

51.4%

Good

Healthy core-business profitability

Net Margin

14.8%

Good

Strong bottom-line conversion

Current Ratio

10.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.05

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

22.9 / 22.0

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7 Cr	₹5 Cr	₹7 Cr	₹4 Cr	-14.4%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-80.4%
EBITDA Margin	2.6%	6.5%	4.9%	0.0%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹1 Cr	-₹0 Cr	—
EPS	₹0.14	₹0.5	₹1.69	₹-0.05	—
ROE	0.4%	1.1%	3.7%	-0.1%	—
ROCE	1.1%	1.8%	3.6%	-0.2%	—
Free Cash Flow	₹1 Cr	-₹0 Cr	₹1 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 14.4% a year over 3 years.

🔴 EBITDA has shrunk at 80.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 2.6% to 0.0% over 3 years (-2.6 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.14 to ₹-0.05.

🟡 ROE has held roughly flat at -0.1% over 3 years.

🔴 ROCE has fallen from 1.1% to -0.2% over 3 years (-1.2 pts).

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.0%

Corporate Actions

Ex-Dividend Date

15 Sept 1997

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 mixed1 negative3 general

Logitech International (SWX:LOGN) Unveils Its Biggest Enterprise Launch, Is The 5% Upside Enough?

Simply Wall Street, 16 Oct

Enterprise International Ltd Downgraded to Strong Sell Amid Technical and Fundamental Concerns

MarketsMojo, 07 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Arista Networks vs. International Business Machines: Which Technology Stock Is a Better Buy in 2026?

The Motley Fool, 13 Oct

World Stock Market Capitalization Closes Year at $54.6 Trillion

American Enterprise Institute - AEI, 26 Sept

Augmont Enterprises share price jumps over 29% from IPO price on listing day: Should you buy, sell or hold?

Livemint, 31 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

GTL Infrastructure reports standalone net profit of Rs 69.39 crore in the June 2026 quarter

Business Standard, 06 AugResults

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

Watch Items

Revenue growth is negative (-46.3%) 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

StrongValuation

MiddlingBusiness Quality · Financial Health · Profitability

WeakGrowth · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑