Fiberweb (India) Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹26.70+₹0.35 (+1.33%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt 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 Fiberweb (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Fiberweb (India) Limited manufactures and sells spunbond and melt-blown nonwoven fabrics from polypropylene in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees114

Annual revenue₹84 Cr

How does it make money?

Turns over ₹84 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 114 employees supports ₹74.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹74.0 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 7.6% 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 +28% while net margin moved -2707% 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+28%

Margin effect-2707%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.19 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

69/ 100

Cheap

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

14.8x

2Y Median

8.3x

28 monthly readings · mean 12.2x · range 5.4x–24.9x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 78% above its 2y median of 8.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 79% below the peer median of 69.2x.

vs. its own history

Expensive

8.3x median over 28 months · +78%

vs. sector peers

Cheap

69.2x median of 4 peers · -79%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.8% to 22.3% over 3 years.
Return on equity is rising
ROE has improved from -0.2% to 5.4%.
Return on capital is rising
ROCE has improved from -0.1% to 7.6%.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 90% over 3 years, from ₹6 Cr to ₹12 Cr.
🔴High leverageFinancial
Debt/Equity of 6.45x — earnings must service borrowings before shareholders see anything.
🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.8% to 22.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 79% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 6.45x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 78% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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
3 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 20%✓ 22.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 7% a year✓ 8.7% CAGR
Latest reported year was -65.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 7.6%
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

3 good · 2 neutral · 6 weak

Market Cap

₹77 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.8x

Cheap

Cheap against the generic band

P/B Ratio

0.41x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.81

Profitable

Profitable on a per-share basis

ROE

5.4%

Weak

Weak capital efficiency

ROCE

7.6%

Weak

Low return on total capital employed

Debt/Equity

6.45x

High

High leverage

Revenue Growth (YoY)

-65.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-94.9%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.1%

Average

Average margins

Net Margin

8.0%

Average

Average bottom-line conversion

Current Ratio

3.89

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

26.5 / 26.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹66 Cr	₹86 Cr	₹101 Cr	₹84 Cr	+8.7%
EBITDA	₹3 Cr	₹12 Cr	₹22 Cr	₹19 Cr	+80.6%
EBITDA Margin	4.8%	14.2%	22.2%	22.3%	—
PAT (Net Profit)	-₹0 Cr	₹7 Cr	₹15 Cr	₹10 Cr	—
EPS	₹-0.1	₹2.52	₹5.21	₹3.48	—
ROE	-0.2%	4.5%	8.5%	5.4%	—
ROCE	-0.1%	4.9%	10.0%	7.6%	—
Total Debt	₹6 Cr	₹7 Cr	₹8 Cr	₹12 Cr	+23.8%
Free Cash Flow	-₹9 Cr	-₹2 Cr	-₹5 Cr	-₹4 Cr	—

🟢 Revenue has grown at 8.7% a year over 3 years.

🟢 EBITDA has grown at 80.6% a year over 3 years.

🟢 EBITDA Margin has risen from 4.8% to 22.3% over 3 years (+17.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹10 Cr.

🟢 EPS has turned positive, from ₹-0.1 to ₹3.48.

🟢 ROE has risen from -0.2% to 5.4% over 3 years (+5.6 pts).

🟢 ROCE has risen from -0.1% to 7.6% over 3 years (+7.7 pts).

🔴 Total Debt has grown at 23.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹205 Cr

Total Liabilities

₹19 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹17 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

52.1%

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

Fiberweb (India) vs Nifty 50: Share Price Performance Compared

Univest, 23 Sept

FIBERWEB Historical Data

Equitypandit, 04 Mar

Fiberweb (India) Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 06 Feb

Fiberweb promoter Pravin Sheth buys 31,790 shares on open market

scanx.trade, 15 Sept

Fiberweb India: Best Stock in Its Sector? Key Metrics

Univest, 25 Sept

Fiberweb (India) Limited Schedules 74th Board Meeting on May 14, 2026 to Approve Q4 and Full-Year FY26 Audited Results

scanx.trade, 14 MayResults

🟡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 (-65.9%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health · Growth · Profitability

WeakRisk

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. 3 high-severity red flags sit above this conclusion and should be read first.

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