Indo Count Industries Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹440.70+₹3.20 (+0.73%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Indo Count Industries Limited manufactures and sells home textile products in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees3,599

Annual revenue₹3,872 Cr

How does it make money?

Turns over ₹3,872 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 3,599 employees supports ₹1.08 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.08 Cr

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?Little sign of one

Returns on capital of 9.5% 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.

Peer median ROE25.9%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 20.8% and earnings to grow about 55.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.8%

Est. earnings growth+55.6%

Analysts6

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +39% while net margin moved -67% 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+39%

Margin effect-67%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 9.5% is below 10% — capital is not working hard
✗ ROCE has fallen by 10.1 points — returns are eroding
✗ EBITDA margin of 11.8% is thin — little cushion if costs rise
✗ Net margin of 3.4% is slim
• Revenue has compounded at 11.7% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

39/ 100

Expensive

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

57.8x

3Y Median

22.1x

40 monthly readings · mean 26.6x · range 14.9x–73.4x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 161% above its 3y median of 22.1x. 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 16% below the peer median of 69.2x.

vs. its own history

Expensive

22.1x median over 40 months · +161%

vs. sector peers

Fair

69.2x median of 4 peers · -16%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

21.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.4% to 5.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.6% to 9.5% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 53% over 3 years, from ₹876 Cr to ₹1,342 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.1 points, from 16.9% to 11.8%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.9x to 2.3x.
🟡Profit is decliningFinancial
Net profit is down 54% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 16.9% to 11.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 161% 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 15.4% to 5.4%. 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
Small 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

1Revenue growth stays above 9% a year✓ 11.7% CAGR
Latest reported year was 25.9%. 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 stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 2.3x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹371 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹8,728 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

57.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.62

Profitable

Profitable on a per-share basis

ROE

5.4%

Weak

Weak capital efficiency

ROCE

9.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.57x

Low

Conservative leverage

Revenue Growth (YoY)

25.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

67.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.34%

Modest

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

Free Cash Flow

₹371 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

18.6x

Improving

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

Operating Margin

8.1%

Average

Average margins

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

1.71

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

83%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

450.3 / 438.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,782 Cr	₹3,271 Cr	₹3,817 Cr	₹3,872 Cr	+11.7%
EBITDA	₹471 Cr	₹601 Cr	₹571 Cr	₹457 Cr	-1.0%
EBITDA Margin	16.9%	18.4%	15.0%	11.8%	—
PAT (Net Profit)	₹277 Cr	₹338 Cr	₹250 Cr	₹127 Cr	-22.9%
EPS	₹13.97	₹17.06	₹12.62	₹6.4	-22.9%
ROE	15.4%	16.2%	11.0%	5.4%	—
ROCE	19.6%	21.6%	15.4%	9.5%	—
Total Debt	₹876 Cr	₹956 Cr	₹1,449 Cr	₹1,342 Cr	+15.3%
Free Cash Flow	₹413 Cr	₹11 Cr	₹143 Cr	₹371 Cr	-3.5%

🟢 Revenue has grown at 11.7% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-1.0% a year).

🔴 EBITDA Margin has fallen from 16.9% to 11.8% over 3 years (-5.1 pts).

🔴 PAT (Net Profit) has shrunk at 22.9% a year over 3 years.

🔴 EPS has shrunk at 22.9% a year over 3 years.

🔴 ROE has fallen from 15.4% to 5.4% over 3 years (-10.1 pts).

🔴 ROCE has fallen from 19.6% to 9.5% over 3 years (-10.1 pts).

🔴 Total Debt has grown at 15.3% a year over 3 years.

🔴 Free Cash Flow has shrunk at 3.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,492 Cr

Total Liabilities

₹2,137 Cr

Cash & Equivalents

₹114 Cr

Operating Cash Flow

₹573 Cr

Capex

-₹202 Cr

Shareholding (proxy)

Institutional Holding

13.7%

Insider Holding

61.6%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

17 Aug 2026

Analyst Consensus

Recommendations

5 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹484.67

+10.0% vs CMP

Target Range

₹385 – ₹550

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 positive5 general

Indo Count Industries (NSEI:ICIL) - Stock Analysis

Simply Wall Street, 12 Oct

Indo Count Industries AGM passes dividend, executive pay waivers

scanx.trade, 14 OctCapital return

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

Textile stocks Gokaldas, Indo Count, PDS, Filatex soar up to 6%; here's why

Business Standard, 14 Oct

Indo Count Industries Share Price +15.28% 8-Week High 2030 Percent Volume 18 Aug 2026

Univest, 18 Aug

Indo Count Industries (ICIL.NS) Edges Lower to ₹471.1 as Home Textile Major Holds Mid-Range - Weak Sell Signals

https://www.siam.in/, 07 Oct

Indo Count Industries: Lhochhar Trust ਨੇ ਵੋਟਿੰਗ ਅਧਿਕਾਰਾਂ ਵਿੱਚ ਕੀਤਾ ਬਦਲਾਅ, ਜਾਣੋ ਕੀ ਹੈ ਨਿਵੇਸ਼ਕਾਂ ਲਈ ਅਪਡੇਟ

Whalesbook, 14 Oct

Watch Items

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

DalalBaazaar Thesis

MiddlingFinancial Health · Risk

WeakBusiness Quality · Growth · Profitability · Valuation

Points for each in the Score ↑

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

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑