Hisar Spinning Mills Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹53.50₹0.00 (0.00%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Hisar Spinning Mills Limited manufactures and sells cotton blended yarns in India and internationally. The company was incorporated in 1992 and is based in Hisar, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees75

Annual revenue₹44 Cr

How does it make money?

Turns over ₹44 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 75 employees supports ₹58.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin15.6%

Net margin7.5%

Revenue / employee₹58.8 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?Some evidence

ROCE of 15.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.5%

ROE11.6%

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 -2% while net margin moved +2% 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-2%

Margin effect+2%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.8% a year
✗ Profit has declined at 0.1% a year

Quality vs. Valuation

Company Quality

50/ 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

5.8x

3Y Median

6.7x

40 monthly readings · mean 7.4x · range 4.5x–13.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 14% below its 3y median of 6.7x. 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 92% below the peer median of 69.2x.

vs. its own history

Fair

6.7x median over 40 months · -14%

vs. sector peers

Cheap

69.2x median of 4 peers · -92%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

5.8x

P/B

0.70x

EV/EBITDA

3.1x

PEG

0.33

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 111% over 3 years.
Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.4% to 11.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.4% to 15.5% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 92% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Returns on shareholder capital are falling
ROE has dropped from 16.4% to 11.6%. 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 14%✓ 15.6%
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✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 12%✓ 15.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 6.7x✓ 5.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 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

8 good · 3 neutral · 0 weak

Market Cap

₹20 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.8x

Cheap

Cheap against the generic band

P/B Ratio

0.70x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹9.29

Profitable

Profitable on a per-share basis

ROE

11.6%

Moderate

Moderate capital efficiency

ROCE

15.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

12.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

17.5%

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

CMP

₹53.5

Operating Margin

11.5%

Average

Average margins

Net Margin

7.6%

Average

Average bottom-line conversion

Current Ratio

7.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

54.6 / 50.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

30.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹45 Cr	₹42 Cr	₹45 Cr	₹44 Cr	-0.8%
EBITDA	₹7 Cr	₹5 Cr	₹6 Cr	₹7 Cr	-0.7%
EBITDA Margin	15.6%	11.3%	12.6%	15.6%	—
PAT (Net Profit)	₹3 Cr	₹2 Cr	₹3 Cr	₹3 Cr	-0.1%
EPS	₹8.87	₹5.41	₹7.84	₹8.85	-0.1%
ROE	16.4%	9.1%	11.6%	11.6%	—
ROCE	20.4%	12.5%	15.2%	15.5%	—
Total Debt	₹3 Cr	₹3 Cr	₹7 Cr	₹4 Cr	+6.3%
Free Cash Flow	₹1 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+28.3%

🟡 Revenue has been broadly flat over 3 years (-0.8% a year).

🟡 EBITDA has been broadly flat over 3 years (-0.7% a year).

🟡 EBITDA Margin has held roughly flat at 15.6% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (-0.1% a year).

🟡 EPS has been broadly flat over 3 years (-0.1% a year).

🔴 ROE has fallen from 16.4% to 11.6% over 3 years (-4.7 pts).

🔴 ROCE has fallen from 20.4% to 15.5% over 3 years (-4.9 pts).

🔴 Total Debt has grown at 6.3% a year over 3 years.

🟢 Free Cash Flow has grown at 28.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹33 Cr

Total Liabilities

₹5 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

52.8%

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

HP Cotton Textile Mills seeks settlement of ₹21.20 lakh entry tax demand

scanx.trade, 29 Sept

Q1 Results Next Week: HAL, IRCTC, MRF, Vodafone Idea, RVNL & More; Full List of Companies Announcing Earnings

Goodreturns, 08 AugResults

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

HP Cotton Textile Mills schedules 45th AGM for September 18, 2026

scanx.trade, 12 Aug

VCL Stock Price and Chart — NSE:VCL

TradingView, 05 Apr

Home First Finance Company India Share Price

The Economic Times, 06 Feb

Q4 results: Aurobindo Pharma, Shilpa Medicare, Nazara Technologies to announce March quarter numbers on May 26; check details

Upstox, 25 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

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

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟢Financial HealthStrong17.8/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate7.1/15

🟢ValuationAttractive11.8/15

🟡RiskModerate5.2/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 14%15.6%
✓Free cash flow remains positive₹2 Cr
✓Debt / EBITDA stays below 2x0.5x
✓ROCE stays above 12%15.5%
✓Valuation vs its own median of 6.7x5.8x today