Globe Enterprises (India) Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹2.07+₹0.05 (+2.48%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Globe Enterprises (India) Limited engages in the manufacture and sale of textile and apparel in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees684

Annual revenue₹547 Cr

How does it make money?

Turns over ₹547 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 684 employees supports ₹79.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹79.9 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 is its competitive advantage?Some evidence

ROCE of 17.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +45% while net margin moved +28% 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+45%

Margin effect+28%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.5% is weak
✗ ROE has fallen by 3.8 points over the period

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

81/ 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

9.0x

4Y Median

9.5x

52 monthly readings · mean 11.1x · range 5.5x–25.5x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 4y median of 9.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 87% below the peer median of 69.2x.

vs. its own history

Fair

9.5x median over 52 months · -5%

vs. sector peers

Cheap

69.2x median of 4 peers · -87%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.1x

PEG

0.40

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 4.3% to 6.2% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.3% to 6.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.8% to 17.8% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 63% over 3 years, from ₹91 Cr to ₹148 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.
🔴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 -₹22 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 112% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.3% to 6.2%. 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 87% 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?

The debt load needs earnings to hold up
Debt is 4.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 10.3% to 6.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1Revenue growth stays above 10% a year✓ 13.1% CAGR
Latest reported year was 47.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹22 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.

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

6 good · 3 neutral · 2 weak

Market Cap

₹93 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.0x

Cheap

Cheap against the generic band

P/B Ratio

0.62x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.23

Profitable

Profitable on a per-share basis

ROE

6.5%

Weak

Weak capital efficiency

ROCE

17.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.14x

Moderate

Moderate leverage

Revenue Growth (YoY)

47.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

200.0%

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

-₹22 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.5%

Weak

Thin margins leave little room for error

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2.1 / 2.0

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.9

Oversold zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹378 Cr	₹384 Cr	₹447 Cr	₹547 Cr	+13.1%
EBITDA	₹16 Cr	₹19 Cr	₹27 Cr	₹34 Cr	+27.3%
EBITDA Margin	4.3%	4.8%	6.0%	6.2%	—
PAT (Net Profit)	₹5 Cr	₹5 Cr	₹9 Cr	₹9 Cr	+22.8%
EPS	₹0.36	₹0.23	₹0.28	₹0.3	-5.5%
ROE	10.3%	8.3%	7.6%	6.5%	—
ROCE	20.8%	18.9%	18.2%	17.8%	—
Total Debt	₹91 Cr	₹105 Cr	₹121 Cr	₹148 Cr	+17.7%
Free Cash Flow	-₹9 Cr	-₹4 Cr	₹10 Cr	-₹22 Cr	—

🟢 Revenue has grown at 13.1% a year over 3 years.

🟢 EBITDA has grown at 27.3% a year over 3 years.

🟢 EBITDA Margin has risen from 4.3% to 6.2% over 3 years (+1.8 pts).

🟢 PAT (Net Profit) has grown at 22.8% a year over 3 years.

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

🔴 ROE has fallen from 10.3% to 6.5% over 3 years (-3.8 pts).

🔴 ROCE has fallen from 20.8% to 17.8% over 3 years (-3.0 pts).

🔴 Total Debt has grown at 17.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹385 Cr

Total Liabilities

₹239 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹18 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.8%

Insider Holding

133.3%

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 mixed4 general

Globe Enterprises (India) Limited (GLOBE.NS) Slips 1.90% to ₹2.07 as Stock Hovers Near Lower Support Band - Triple Top

https://www.siam.in/, 05 Oct

GLOBE ENTERPRISES (INDIA) vs Nifty 50: Returns Compared

Univest, 25 Sept

Globe Enterprises gets NSE observations for Morabia demerger

scanx.trade, 07 Jul

Globe Enterprises (India) Share Price Dips 2.67% to ₹1.82 on NSE; ₹1.73 Support in Focus - ETF NAV Deviation

https://www.siam.in/, 09 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

GLOBE ENTERPRISE (I) LTD Share Price

Upstox, 05 May

Globe Enterprises (India) Q2 FY27 Results Preview: Revenue Growth in Focus

Univest, 17 SeptResults

🟡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

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality

WeakFinancial Health · Profitability · 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. 3 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; Interest cover stays above 3x · see Key things to watch ↑