Gloster Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹540.00+₹3.90 (+0.73%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

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, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Gloster Limited manufactures and exports various jute products in India, the Americas, Europe, Asia, Australia, and internationally. It operates in two segments: Jute Goods and Cables & Other Electrical Products.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees3,702

Annual revenue₹1,418 Cr

How does it make money?

Turns over ₹1,418 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 3,702 employees supports ₹38.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin11.8%

Net margin1.3%

Revenue / employee₹38.3 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.

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 6.3% 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.

ROCE6.3%

ROE1.7%

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 +103% while net margin moved -84% 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+103%

Margin effect-84%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 1.7% is weak
✗ ROE has fallen by 3.4 points over the period

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

56/ 100

Fair

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

46.2x

3Y Median

29.4x

32 monthly readings · mean 28.4x · range 16.7x–37.5x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 57% above its 3y median of 29.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 33% below the peer median of 69.2x.

vs. its own history

Expensive

29.4x median over 32 months · +57%

vs. sector peers

Cheap

69.2x median of 4 peers · -33%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

46.2x

P/B

0.54x

EV/EBITDA

9.2x

PEG

—

Dividend Yield

3.70%

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention7

Margins are compressing
EBITDA margin has slipped from 16.0% to 11.8% over 3 years.
Debt is rising
Total debt is up 1210% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 5.0% to 1.7% — each rupee of shareholder capital earns less than it did.
Receivables growing faster than sales
Receivables are up 681% against revenue growth of 103% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 240% against revenue growth of 103% — stock may not be moving.
Valuation above its historical average
At 46.2x the stock trades 57% above its own median of 29.4x.

Red Flags

8 items require attention · 6 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1210% over 3 years, from ₹73 Cr to ₹959 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 681% against revenue up 103% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 240% against revenue up 103% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 67% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.2 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 33% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 16.0% to 11.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 5.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 681% against revenue up 103%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 57% 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.
Returns on shareholder capital are falling
ROE has dropped from 5.0% to 1.7%. 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.

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

1Revenue growth stays above 20% a year✓ 26.6% CAGR
Latest reported year was 39.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 5.7x
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✗ -₹280 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.5x
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

₹591 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

46.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.54x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹11.7

Profitable

Profitable on a per-share basis

ROE

1.7%

Weak

Weak capital efficiency

ROCE

6.3%

Weak

Low return on total capital employed

Debt/Equity

0.88x

Moderate

Moderate leverage

Revenue Growth (YoY)

39.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

235.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.70%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹280 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹540

Operating Margin

4.8%

Weak

Thin margins leave little room for error

Net Margin

0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

551.2 / 586.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹698 Cr	₹641 Cr	₹728 Cr	₹1,418 Cr	+26.6%
EBITDA	₹112 Cr	₹76 Cr	₹61 Cr	₹168 Cr	+14.5%
EBITDA Margin	16.0%	11.9%	8.4%	11.8%	—
PAT (Net Profit)	₹54 Cr	₹24 Cr	-₹13 Cr	₹18 Cr	-30.7%
EPS	₹49.7	₹22.25	₹-12.2	₹16.57	-30.7%
ROE	5.0%	2.2%	-1.2%	1.7%	—
ROCE	6.0%	3.0%	1.7%	6.3%	—
Total Debt	₹73 Cr	₹194 Cr	₹579 Cr	₹959 Cr	+135.7%
Free Cash Flow	-₹85 Cr	-₹107 Cr	-₹328 Cr	-₹280 Cr	—

🟢 Revenue has grown at 26.6% a year over 3 years.

🟢 EBITDA has grown at 14.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.0% to 11.8% over 3 years (-4.2 pts).

🔴 PAT (Net Profit) has shrunk at 30.7% a year over 3 years.

🔴 EPS has shrunk at 30.7% a year over 3 years.

🔴 ROE has fallen from 5.0% to 1.7% over 3 years (-3.4 pts).

🟡 ROCE has held roughly flat at 6.3% over 3 years.

🔴 Total Debt has grown at 135.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,511 Cr

Total Liabilities

₹1,422 Cr

Total Debt

₹959 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹142 Cr

Capex

-₹138 Cr

Shareholding (proxy)

Institutional Holding

13.6%

Insider Holding

73.1%

Corporate Actions

Dividend Rate

₹20

Ex-Dividend Date

03 Jul 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

2 positive4 general

Smallcap Stock Declares 1:1 Bonus Share & 500% Dividend, Payout Date Soon

Goodreturns, 16 OctCapital return

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

Gloster vs Nifty 50: Share Price Performance Compared

Univest, 25 Sept

Gloster Limited: Stock Holds Near ₹600 as Jute Sector Faces Mixed Cues - Catalyst Driven Stocks

siam.in, 30 Aug

Gloster FY26 profit rises to Rs 387.6 crore, board recommends dividend

scanx.trade, 23 MayCapital return

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

Gloster Share Price For Android - Free App Download - App Store

اداره آمادگی مبارزه با حوادث, 15 Oct

Gloster Share Price Forecast: 3 Year Outlook to 2030

Univest, 16 Jul

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🔴Financial HealthStretched8.1/20

🟡GrowthModest9.3/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair7.6/15

🔴RiskHigh4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 6 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 20% a year26.6% CAGR
✓EBITDA margin holds above 10%11.8%
✗Debt / EBITDA falls below 3x5.7x
✗Free cash flow remains positive-₹280 Cr
✗Interest cover stays above 3x1.5x