Garware Synthetics Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹18.89₹0.00 (0.00%)

DalalBaazaar Score

18 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Garware Synthetics Limited engages in the manufacture and sale of nylon monofilaments, bristles, and fishing line and PP bristles in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees65

Annual revenue₹10 Cr

How does it make money?

Turns over ₹10 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 65 employees supports ₹15.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹15.9 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 has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -9% while net margin moved -31% 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-9%

Margin effect-31%

DalalBaazaar Score

18/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

17/ 100

Weak

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

Valuation

30/ 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.

Historical Valuation

Current P/E

63.0x

3Y Median

29.0x

40 monthly readings · mean 327.8x · range 11.8x–1521.0x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 117% above its 3y median of 29.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Expensive

29.0x median over 40 months · +117%

vs. sector peers

Fair

69.2x median of 4 peers · -9%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

17.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 19% over 3 years.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 2 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴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 -₹1 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 37% over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.15 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 19% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 6.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 117% 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.

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

1EBITDA margin holds above 7%✓ 9.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 4x✓ 5.4x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 29.0x✗ 63.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

2 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ 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

2 good · 4 neutral · 5 weak

Market Cap

₹11 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

63.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹0.3

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-35.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

2686.2%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-8.1%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.15

Tight

Tight short-term liquidity

Beta (vs Nifty)

1.36

High swing

Swings more than the market in both directions

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

18.7 / 18.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹11 Cr	₹11 Cr	₹10 Cr	-3.2%
EBITDA	₹1 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+1.7%
EBITDA Margin	8.2%	3.6%	3.2%	9.5%	—
PAT (Net Profit)	₹1 Cr	-₹0 Cr	₹0 Cr	₹0 Cr	-14.4%
EPS	₹1	₹-0.08	₹0.02	₹0.62	-14.7%
ROCE	11.1%	3.9%	—	—	—
Total Debt	₹8 Cr	₹7 Cr	₹6 Cr	₹6 Cr	-6.9%
Free Cash Flow	₹1 Cr	₹0 Cr	₹0 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 3.2% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.7% a year).

🟢 EBITDA Margin has risen from 8.2% to 9.5% over 3 years (+1.3 pts).

🔴 PAT (Net Profit) has shrunk at 14.4% a year over 3 years.

🔴 EPS has shrunk at 14.7% a year over 3 years.

🟢 Total Debt has shrunk at 6.9% a year over 3 years.

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

52.6%

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

Garware Synthetics posts ₹36.22 lakh FY26 profit; seeks chairman pay hike

scanx.trade, 04 Sept

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.

GARWARE SYNTHETICS LTD. Share Price

Upstox, 04 Apr

Fundamentally Strong Stocks Under 20

Alice Blue, 16 Jul

Garware Technical Fibres Q4 Profit Falls 19.7% to ₹57.1 Crore as Revenue Drops

Sahi, 20 MayResults

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

Raghuvir Synthetics Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Watch Items

Revenue growth is negative (-35.4%) 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.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Garware Synthetics Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Valuation vs its own median of 29.0x · see Key things to watch ↑