Garment Mantra Lifestyle Limited

Consumer Cyclical — Apparel Manufacturing · BSE

₹1.00₹0.00 (0.00%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by 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, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Garment Mantra Lifestyle Limited manufactures, distributes, and sells fabrics and hosiery garments in India.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees59

Annual revenue₹262 Cr

How does it make money?

Turns over ₹262 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 59 employees supports ₹4.44 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.44 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.5% 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 +52% while net margin moved +218% 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+52%

Margin effect+218%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 7.4% is weak

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

84/ 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

6.7x

3Y Median

19.7x

40 monthly readings · mean 62.2x · range 8.4x–225.4x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 66% below its 3y median of 19.7x. 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 90% below the peer median of 69.2x.

vs. its own history

Cheap

19.7x median over 40 months · -66%

vs. sector peers

Cheap

69.2x median of 4 peers · -90%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.1x

PEG

0.10

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 47% over 3 years.
Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 12.5% to 10.5% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹27 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 63% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 47% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 66% 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 90% 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?

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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 15.1% CAGR
Latest reported year was 73.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹27 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 10.5%
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

6 good · 3 neutral · 2 weak

Market Cap

₹59 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.7x

Cheap

Cheap against the generic band

P/B Ratio

0.55x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.15

Profitable

Profitable on a per-share basis

ROE

7.4%

Weak

Weak capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

73.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

56.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹24 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

2.0%

Weak

Assets generate little profit

Operating Margin

-5.6%

Weak

Thin margins leave little room for error

Net Margin

1.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.84

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.09

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1.1 / 1.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹172 Cr	₹164 Cr	₹132 Cr	₹262 Cr	+15.1%
EBITDA	₹6 Cr	₹8 Cr	₹8 Cr	₹8 Cr	+9.0%
EBITDA Margin	3.6%	4.8%	6.1%	3.1%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹3 Cr	₹4 Cr	+69.3%
EPS	₹0.03	₹0.09	₹0.11	₹0.12	+52.2%
ROE	2.7%	6.6%	7.0%	5.5%	—
ROCE	12.5%	15.6%	13.5%	10.5%	—
Total Debt	₹41 Cr	₹78 Cr	₹32 Cr	₹22 Cr	-19.0%
Free Cash Flow	₹4 Cr	₹3 Cr	₹14 Cr	-₹27 Cr	—

🟢 Revenue has grown at 15.1% a year over 3 years.

🟢 EBITDA has grown at 9.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 3.1% over 3 years.

🟢 PAT (Net Profit) has grown at 69.3% a year over 3 years.

🟢 EPS has grown at 52.2% a year over 3 years.

🟢 ROE has risen from 2.7% to 5.5% over 3 years (+2.8 pts).

🔴 ROCE has fallen from 12.5% to 10.5% over 3 years (-2.0 pts).

🟢 Total Debt has shrunk at 19.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹27 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹119 Cr

Total Liabilities

₹37 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹27 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

51.1%

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

2 positive1 mixed3 general

Garment Mantra Lifestyle AGM voting results show all resolutions passed

scanx.trade, 29 SeptResults

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

Garment Mantra Export Order Lifts Sentiment

HDFC Sky, 27 Apr

Garment Mantra opens dedicated Tirupur office for white-label business

scanx.trade, 21 Sept

Rossell Techsys consolidated net profit rises 116.36% in the June 2026 quarter

Business Standard, 28 JulResults

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

Biogen Pharmachem Industries - 13 penny stocks plunge up to 65% in 3 months. Are you affected?

The Economic Times, 17 May

Textile stock hits upper circuit after announcing 1:10 stock split

mint, 05 AprCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

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

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality

WeakProfitability · Risk

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

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑