Gini Silk Mills Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹55.03−₹4.49 (−7.54%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, 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, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gini Silk Mills Limited manufactures and sells shirting and suiting products under the GINI brand in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees117

Annual revenue₹39 Cr

How does it make money?

Turns over ₹39 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 117 employees supports ₹33.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹33.4 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 4.0% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -15% while net margin moved +23% 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-15%

Margin effect+23%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.5% a year
✗ Profit CAGR of only 1.2%

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

73/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

13.9x

3Y Median

20.2x

40 monthly readings · mean 22.2x · range 13.7x–48.6x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 31% below its 3y median of 20.2x. 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 80% below the peer median of 69.2x.

vs. its own history

Cheap

20.2x median over 40 months · -31%

vs. sector peers

Cheap

69.2x median of 4 peers · -80%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

11.8x

PEG

11.70

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 60% 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

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 6.50x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 60% 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 31% 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 80% 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 6.50x. 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.

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

1EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 4.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 7.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

5 good · 2 neutral · 4 weak

Market Cap

₹31 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.9x

Cheap

Cheap against the generic band

P/B Ratio

0.59x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.96

Profitable

Profitable on a per-share basis

ROE

3.1%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

6.50x

High

High leverage

Revenue Growth (YoY)

-1.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

452.0%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-5.7%

Weak

Thin margins leave little room for error

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

1.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

58.0 / 58.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹46 Cr	₹44 Cr	₹40 Cr	₹39 Cr	-5.5%
EBITDA	₹4 Cr	₹5 Cr	₹3 Cr	₹3 Cr	-9.5%
EBITDA Margin	8.4%	10.4%	8.1%	7.4%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹2 Cr	₹2 Cr	+1.2%
EPS	₹2.74	₹5.43	₹3.23	₹2.84	+1.2%
ROE	3.6%	6.4%	3.6%	3.1%	—
ROCE	5.5%	8.3%	5.0%	4.0%	—
Total Debt	₹8 Cr	₹9 Cr	₹4 Cr	₹3 Cr	-26.5%
Free Cash Flow	-₹0 Cr	₹3 Cr	₹0 Cr	₹2 Cr	—

🔴 Revenue has shrunk at 5.5% a year over 3 years.

🔴 EBITDA has shrunk at 9.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.4% to 7.4% over 3 years (-1.0 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.2% a year).

🟡 EPS has been broadly flat over 3 years (1.2% a year).

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

🔴 ROCE has fallen from 5.5% to 4.0% over 3 years (-1.5 pts).

🟢 Total Debt has shrunk at 26.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹64 Cr

Total Liabilities

₹12 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.7%

Corporate Actions

Ex-Dividend Date

16 Mar 2020

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 mixed1 negative3 general

Gini Silk Mills Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Gini Silk Mills seeks ₹3.90 crore RPT approval at AGM

scanx.trade, 05 Aug

Gini Silk Mills Schedules Board Meeting on May 22, 2026 to Approve Q4FY26 Audited Financial Results

scanx.trade, 22 MayResults

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

GINI SILK MILLS LTD. Share Price

Upstox, 27 Mar

Gini Silk Mills FY26 Results: Net profit falls 12% to ₹158.58 lakh

scanx.trade, 05 AugResults

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

Q4 results 2026: BEL to LIC among 500 companies to declare Q4 results next week; full list here

Livemint, 17 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 (-1.0%) 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.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑