Filatex India Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹106.15+₹0.17 (+0.16%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

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

In simple words: Reasonable but unspectacular business quality, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Filatex India Limited manufactures, sells, and trades polyester filament yarn, and synthetic yarn and textiles in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees2,615

Annual revenue₹4,153 Cr

How does it make money?

Turns over ₹4,153 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 2,615 employees supports ₹1.59 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.6%

Net margin4.4%

Revenue / employee₹1.59 Cr

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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 14.2% 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.

ROCE14.2%

ROE12.2%

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 -3% while net margin moved +111% 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-3%

Margin effect+111%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.20 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

67/ 100

Fair

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

24.7x

3Y Median

23.4x

40 monthly readings · mean 22.3x · range 12.3x–36.2x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 23.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 64% below the peer median of 69.2x.

vs. its own history

Fair

23.4x median over 40 months · +5%

vs. sector peers

Cheap

69.2x median of 4 peers · -64%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

24.7x

P/B

3.14x

EV/EBITDA

15.4x

PEG

0.92

Dividend Yield

0.28%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 5.2% to 7.6% over 3 years.
Debt is being paid down
Total debt is down 50% over 3 years.
Return on equity is rising
ROE has improved from 8.2% to 12.2%.
Return on capital is rising
ROCE has improved from 10.2% to 14.2%.
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 · 2 high

🔴High leverageFinancial
Debt/Equity of 9.99x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 5.2% to 7.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 50% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 64% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Leverage amplifies any setback
Debt/Equity of 9.99x. Interest is payable whether or not the business has a good year.
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 6%✓ 7.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹53 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 11%✓ 14.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 23.4x✓ 24.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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 · 7 neutral · 1 weak

Market Cap

₹4,714 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.7x

Fair

Fairly valued against the generic band

P/B Ratio

3.14x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.3

Profitable

Profitable on a per-share basis

ROE

12.2%

Moderate

Moderate capital efficiency

ROCE

14.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

9.99x

High

High leverage

Revenue Growth (YoY)

9.1%

Modest

Modest growth

Profit Growth (YoY)

18.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.28%

Modest

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

Free Cash Flow

₹53 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹106.15

P/E (Forward)

8.0x

Improving

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

Operating Margin

5.0%

Average

Average margins

Net Margin

4.5%

Average

Average bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

89%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

106.9 / 91.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,290 Cr	₹4,277 Cr	₹4,242 Cr	₹4,153 Cr	-1.1%
EBITDA	₹221 Cr	₹237 Cr	₹260 Cr	₹315 Cr	+12.4%
EBITDA Margin	5.2%	5.5%	6.1%	7.6%	—
PAT (Net Profit)	₹90 Cr	₹111 Cr	₹134 Cr	₹183 Cr	+26.8%
EPS	₹2.02	₹2.49	₹3.01	₹4.13	+26.9%
ROE	8.2%	9.2%	10.1%	12.2%	—
ROCE	10.2%	10.6%	11.7%	14.2%	—
Total Debt	₹304 Cr	₹233 Cr	₹147 Cr	₹150 Cr	-20.9%
Free Cash Flow	₹213 Cr	₹98 Cr	₹260 Cr	₹53 Cr	-37.1%

🟡 Revenue has been broadly flat over 3 years (-1.1% a year).

🟢 EBITDA has grown at 12.4% a year over 3 years.

🟢 EBITDA Margin has risen from 5.2% to 7.6% over 3 years (+2.4 pts).

🟢 PAT (Net Profit) has grown at 26.8% a year over 3 years.

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

🟢 ROE has risen from 8.2% to 12.2% over 3 years (+4.0 pts).

🟢 ROCE has risen from 10.2% to 14.2% over 3 years (+4.0 pts).

🟢 Total Debt has shrunk at 20.9% a year over 3 years.

🔴 Free Cash Flow has shrunk at 37.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,470 Cr

Total Liabilities

₹966 Cr

Total Debt

₹150 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹246 Cr

Capex

-₹193 Cr

Shareholding (proxy)

Institutional Holding

9.3%

Insider Holding

71.8%

Corporate Actions

Dividend Rate

₹0.3

Ex-Dividend Date

15 Sept 2026

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

Filatex India (NSEI:FILATEX) - Stock Analysis

Simply Wall Street, 15 Oct

Filatex India: Best Stock in Its Sector? Key Metrics

Univest, 25 Sept

Filatex India shares can rally to Rs 118? Why Equirus Prive initiated coverage on the stock

The Economic Times, 04 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.

Filatex India Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Textile stocks Gokaldas, Indo Count, PDS, Filatex soar up to 6%; here's why

Business Standard, 14 Oct

Filatex India Ltd is Rated Hold

MarketsMojo, 16 Oct

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟢Financial HealthStrong13.5/20

🟡GrowthModest10.5/20

🟡ProfitabilityModerate8.5/15

🟡ValuationFair9.3/15

🔴RiskHigh4.3/10

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

This thesis breaks if

✓EBITDA margin holds above 6%7.6%
✓Free cash flow remains positive₹53 Cr
✓Debt / EBITDA stays below 2x0.5x
✓ROCE stays above 11%14.2%
✓Valuation vs its own median of 23.4x24.7x today