Euro Leder Fashion Limited

Consumer Cyclical — Apparel Manufacturing · BSE

₹30.47+₹1.45 (+5.00%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Euro Leder Fashion Limited engages in the manufacture and sale of leather garments and leather accessories in India. It offers biker and bomber jackets, blazers, dresses, skirts, pants, scarfs, long coats, and shorts, as well as bags.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Annual revenue₹27 Cr

How does it make money?

Turns over ₹27 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹7 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 9.3% 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 -30% while net margin moved -93% 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-30%

Margin effect-93%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 11.4% a year
✗ Profit has declined at 64.0% a year
✗ Profit fell 76.9% in the latest year

Quality vs. Valuation

Company Quality

32/ 100

Weak

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

Valuation

44/ 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

13.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 51% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
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

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 95% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 51% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

The debt load needs earnings to hold up
Debt is 6.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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

1EBITDA margin holds above 5%✓ 6.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 9.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹14 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

0.82x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.05

Loss-making

Negative earnings per share — the business is losing money

ROE

0.1%

Weak

Weak capital efficiency

ROCE

9.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.80x

Moderate

Moderate leverage

Revenue Growth (YoY)

28.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-76.9%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.1%

Average

Average margins

Net Margin

-0.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.02

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.24

Defensive

Steadier than the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

25.9 / 22.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

82.7

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹39 Cr	₹32 Cr	₹17 Cr	₹27 Cr	-11.4%
EBITDA	₹2 Cr	₹2 Cr	₹1 Cr	₹2 Cr	-6.7%
EBITDA Margin	5.8%	7.1%	4.1%	6.8%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-64.0%
EPS	₹0.98	₹0.78	₹0.05	₹0.05	-62.9%
ROE	2.7%	2.1%	1.3%	0.1%	—
ROCE	11.0%	11.5%	8.2%	9.3%	—
Total Debt	₹24 Cr	₹19 Cr	₹13 Cr	₹12 Cr	-21.1%
Free Cash Flow	-₹3 Cr	₹6 Cr	₹4 Cr	₹2 Cr	—

🔴 Revenue has shrunk at 11.4% a year over 3 years.

🔴 EBITDA has shrunk at 6.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 6.8% over 3 years.

🔴 PAT (Net Profit) has shrunk at 64.0% a year over 3 years.

🔴 EPS has shrunk at 62.9% a year over 3 years.

🔴 ROE has fallen from 2.7% to 0.1% over 3 years (-2.6 pts).

🔴 ROCE has fallen from 11.0% to 9.3% over 3 years (-1.7 pts).

🟢 Total Debt has shrunk at 21.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹38 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

58.0%

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 mixed1 negative4 general

Leather stocks down today: Super Tannery, AKI India, Amin Tannery, Euro-Leder Fashion under pressure; Here's why

Livemint, 15 Sept

Euro Leder Fashion Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 21 Sept

Euro Leder Fashion Ltd. (BSE:EUROLED) Explained: Business Model, Ind

Kalkine India, 14 Sept

Euro Leder Fashion FY26 Results: Net profit falls 91% on tax hit

scanx.trade, 31 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Euro Leder Fashion Ltd. Peer Comparison – Compare with Others

Value Research, 11 Sept

Euro Leder Fashion Ltd Submits Quarterly Compliance Certificate for Q4FY26

scanx.trade, 06 AprResults

🟡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

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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Growth · Profitability

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑