Haria Apparels Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹5.10+₹0.20 (+4.08%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Debt is 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 Haria Apparels Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Haria Apparels Limited engages in the manufacturing and sale of textiles and fabrics in India. It also manufactures apparel products. The company was incorporated in 2011 and is based in Mumbai, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹10 Cr

How does it make money?

Turns over ₹10 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation.

EBITDA margin14.4%

Net margin7.4%

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?Some evidence

ROCE of 15.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.8%

ROE10.4%

Peer median ROE25.9%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Profit has declined at 15.2% a year
✗ Profit fell 14.3% in the latest year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

69/ 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

12.1x

3Y Median

9.5x

40 monthly readings · mean 9.0x · range 5.4x–12.2x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 28% above its 3y median of 9.5x. 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 82% below the peer median of 69.2x.

vs. its own history

Expensive

9.5x median over 40 months · +28%

vs. sector peers

Cheap

69.2x median of 4 peers · -82%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.1x

P/B

1.11x

EV/EBITDA

6.3x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 21% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Return on equity is falling
ROE has dropped from 26.7% to 10.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.7% to 15.8% — often a sign of competition or overexpansion.
Valuation above its historical average
At 12.1x the stock trades 28% above its own median of 9.5x.
Short-term liquidity is tight
Current ratio of 0.29 — near-term obligations exceed near-term assets.

Red Flags

4 items require attention · 1 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 4.03x — earnings must service borrowings before shareholders see anything.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.1x to 3.3x.
🟡Profit is decliningFinancial
Net profit is down 39% over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.29 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 21% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 82% 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 4.03x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 28% 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 26.7% to 10.4%. 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.

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

1EBITDA margin holds above 12%✓ 14.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 15.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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 · 3 neutral · 3 weak

Market Cap

₹8 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.1x

Cheap

Cheap against the generic band

P/B Ratio

1.11x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.42

Profitable

Profitable on a per-share basis

ROE

10.4%

Moderate

Moderate capital efficiency

ROCE

15.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.03x

High

High leverage

Revenue Growth (YoY)

-2.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-14.3%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹5.1

Operating Margin

43.4%

Good

Healthy core-business profitability

Net Margin

7.0%

Average

Average bottom-line conversion

Current Ratio

0.29

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.09

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4.9 / 5.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-2.0%
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-15.2%
EPS	₹0.77	₹0.58	₹0.55	₹0.47	-15.2%
ROE	26.7%	16.9%	13.7%	10.4%	—
ROCE	23.7%	18.1%	14.7%	15.8%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-7.7%
Free Cash Flow	₹1 Cr	₹0 Cr	₹1 Cr	₹0 Cr	-7.1%

🔴 EBITDA has shrunk at 2.0% a year over 3 years.

🔴 PAT (Net Profit) has shrunk at 15.2% a year over 3 years.

🔴 EPS has shrunk at 15.2% a year over 3 years.

🔴 ROE has fallen from 26.7% to 10.4% over 3 years (-16.2 pts).

🔴 ROCE has fallen from 23.7% to 15.8% over 3 years (-7.9 pts).

🟢 Total Debt has shrunk at 7.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 7.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17 Cr

Total Liabilities

₹10 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

58.5%

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 mixed5 general

Haria Apparels AGM passes all resolutions with 98.81% votes in favour

scanx.trade, 01 Oct

Readymade Garments Penny Stocks India 2027: 5 Picks

Univest, 16 Sept

Haria Apparels schedules 15th AGM for Sept 30 via VC

scanx.trade, 05 Sept

HARIA APPARELS LTD Share Price

Upstox, 06 Apr

Haria Apparels board to meet on May 30 for Q4FY26 results

scanx.trade, 21 MayResults

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

Haria Apparels Limited (HARIAAPL.BO) Stock Price, News, Quote & History

Yahoo! Finance Canada, 03 Jun

Watch Items

Revenue growth is negative (-2.6%) 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

🟡Business QualityAdequate10.3/20

🟡Financial HealthAdequate10.8/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate7.1/15

🟢ValuationAttractive9.8/15

🟡RiskModerate5.3/10

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.

This thesis breaks if

✓EBITDA margin holds above 12%14.4%
✓Interest cover stays above 3x3.3x
✓Free cash flow remains positive₹0 Cr
✓Debt / EBITDA stays below 2x0.8x
✓ROCE stays above 13%15.8%