Himatsingka Seide Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹60.95+₹1.62 (+2.73%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Himatsingka Seide Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Himatsingka Seide Limited designs, develops, manufactures, distributes, and retails textile products in North America, India, the Asia Pacific, Europe, the Middle East, Africa, and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees5,284

Annual revenue₹2,337 Cr

How does it make money?

Turns over ₹2,337 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 5,284 employees supports ₹44.2 lakh of revenue a year, the signature of a people-led business.

EBITDA margin21.9%

Net margin2.7%

Revenue / employee₹44.2 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 9.6% 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.

ROCE9.6%

ROE2.9%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -5% while net margin moved -202% 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-5%

Margin effect-202%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.8% a year
✗ Profit fell 54.0% in the latest year

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

80/ 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

14.0x

2Y Median

13.7x

28 monthly readings · mean 14.1x · range 10.2x–18.1x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 2y median of 13.7x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 80% below the peer median of 69.2x.

vs. its own history

Fair

13.7x median over 28 months · +2%

vs. sector peers

Cheap

69.2x median of 4 peers · -80%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.0x

P/B

0.37x

EV/EBITDA

6.6x

PEG

—

Dividend Yield

0.41%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 11.6% to 21.9% over 3 years.
Return on equity is rising
ROE has improved from -4.4% to 2.9%.
Return on capital is rising
ROCE has improved from 3.5% to 9.6%.

🔴 What Needs Attention2

Receivables growing faster than sales
Receivables are up 78% against revenue growth of -5% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 38% against revenue growth of -5% — stock may not be moving.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 78% against revenue up -5% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 38% against revenue up -5% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 28% 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 11.6% to 21.9%. 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 80% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.2x 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 78% against revenue up -5%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
2 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

1EBITDA margin holds above 20%✓ 21.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹177 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 9.6%
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

4 good · 4 neutral · 3 weak

Market Cap

₹766 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.0x

Cheap

Cheap against the generic band

P/B Ratio

0.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.36

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

9.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.23x

Moderate

Moderate leverage

Revenue Growth (YoY)

-5.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-54.0%

Falling

Profits are shrinking

Dividend Yield

0.41%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹177 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹60.95

P/E (Forward)

2.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.5%

Average

Average margins

Net Margin

2.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

63.6 / 68.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,468 Cr	₹2,577 Cr	₹2,554 Cr	₹2,337 Cr	-1.8%
EBITDA	₹286 Cr	₹601 Cr	₹528 Cr	₹512 Cr	+21.4%
EBITDA Margin	11.6%	23.3%	20.7%	21.9%	—
PAT (Net Profit)	-₹64 Cr	₹113 Cr	₹76 Cr	₹62 Cr	—
EPS	₹-6.51	₹11.03	₹6.92	₹4.93	—
ROE	-4.4%	7.2%	3.7%	2.9%	—
ROCE	3.5%	11.6%	8.0%	9.6%	—
Total Debt	₹2,806 Cr	₹2,898 Cr	₹2,567 Cr	₹2,636 Cr	-2.1%
Free Cash Flow	₹344 Cr	₹274 Cr	₹212 Cr	₹177 Cr	-19.9%

🟡 Revenue has been broadly flat over 3 years (-1.8% a year).

🟢 EBITDA has grown at 21.4% a year over 3 years.

🟢 EBITDA Margin has risen from 11.6% to 21.9% over 3 years (+10.3 pts).

🟢 PAT (Net Profit) has turned positive, from -₹64 Cr to ₹62 Cr.

🟢 EPS has turned positive, from ₹-6.51 to ₹4.93.

🟢 ROE has risen from -4.4% to 2.9% over 3 years (+7.3 pts).

🟢 ROCE has risen from 3.5% to 9.6% over 3 years (+6.1 pts).

🟢 Total Debt has shrunk at 2.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 19.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,901 Cr

Total Liabilities

₹3,760 Cr

Total Debt

₹2,636 Cr

Cash & Equivalents

₹47 Cr

Operating Cash Flow

₹204 Cr

Capex

-₹27 Cr

Shareholding (proxy)

Institutional Holding

6.3%

Insider Holding

41.1%

Corporate Actions

Dividend Rate

₹0.25

Ex-Dividend Date

17 Sept 2026

Analyst Consensus

Target Price (Mean)

₹182

+198.6% vs CMP

Target Range

₹155 – ₹209

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

3 negative3 general

Himatsingka Seide Share Price: price action and valuation

Univest, 12 Oct

Himatsingka Seide Q1 profit falls 54% as it pivots to new verticals

scanx.trade, 12 AugResults

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

Himatsingka Seide consolidated net profit declines 54.22% in the June 2026 quarter

Business Standard, 12 AugResults

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

Himatsingka Seide Share Price Forecast: 3 Year Outlook to 2030

Univest, 17 Jul

Himatsingka Seide consolidated net profit declines 88.19% in the March 2026 quarter

Business Standard, 28 MayResults

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

The Street is rewarding textile companies that are rewriting their playbook

Livemint, 19 Feb

Watch Items

Revenue growth is negative (-5.4%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

🟡Business QualityAdequate11.5/20

🟡Financial HealthAdequate10.3/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate7.1/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4.4/10

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. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 20%21.9%
✗Debt / EBITDA falls below 3x5.2x
✗Interest cover stays above 3x1.6x
✓Free cash flow remains positive₹177 Cr
✓ROCE stays above 8%9.6%