Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity.
In simple words: The company is currently losing money, with modest growth. Thin profit margins are the main factor to watch.
Decision support, not a buy or sell call.
As of 18 Oct 2026, 6:10 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.
The 60-second version of Kiran Syntex Limited — what it does, how it earns, and who it competes with, before any of the numbers below.
What does this company do?
Kiran Syntex Limited engages in the manufacture and supply of polyester dyed yarns in India. It provides polyester mono, polyester filament, polyester air textured, polyester slub, and polyester space dyed yarns for use in textile and apparel industries.
IndustryTextile Manufacturing
SectorConsumer Cyclical
Employees1
Annual revenue₹15 Cr
How does it make money?
Turns over ₹15 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 1 employees supports ₹14.89 Cr of revenue a year, the signature of a capital- or asset-led business.
EBITDA margin0.1%
Net margin-0.5%
Revenue / employee₹14.89 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.
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 0.1% 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.
ROCE0.1%
ROE-3.8%
Peer median ROE25.9%
What has been driving growth?
Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +1372% while net margin moved -94% 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+1372%
Margin effect-94%
DalalBaazaar Score
50/ 100
Moderate
Weighted across six categories. Every point is explained below.
✗ Return on equity is negative
Quality vs. Valuation
Company Quality
51/ 100
Average
How good the business is, ignoring the share price entirely.
vs
Valuation
25/ 100
Expensive
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.
vs. its own history
Not enough price and earnings history
vs. sector peers
Not enough peers with a usable P/E
vs. generic bands
N/A
No P/E — the company is lossmaking
P/E (Trailing)
Not meaningful
P/B
3.15x
EV/EBITDA
309.2x
PEG
—
Dividend Yield
None
What's Good / What's Bad
🟢 What's Going Well5
Margins are improving
EBITDA margin is up from -7.7% to 0.1% over 3 years.
Debt is being paid down
Total debt is down 11% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from -3.3% to 0.1%.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
🔴 What Needs Attention1
Receivables growing faster than sales
Receivables are up 1564% against revenue growth of 1372% — customers are taking longer to pay.
Red Flags
2 items require attention · 2 high
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 1564% against revenue up 1372% — sales are being booked faster than they are collected.
Investment Thesis
🟢 Bull CaseWhat could make this work?
Margin expansion has further to run
EBITDA margin has risen from -7.7% to 0.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹0 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
🔴 Bear CaseWhat could go wrong?
The debt load needs earnings to hold up
Debt is 10.9x 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 1564% against revenue up 1372%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
1Revenue growth stays above 109% a year✓ 145.1% CAGR
Latest reported year was 13.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 10.9x
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✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 0.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
Investment Checklist
8 / 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
3 good · 4 neutral · 4 weak
Market Cap
₹6 Cr
Micro Cap
Smaller company — thin liquidity and deep drawdowns are normal here
P/E (Trailing)
Not meaningful
Loss-making
Earnings are negative, so a P/E multiple can't be read here
P/B Ratio
3.15x
Fair
Moderate premium to the company's book value
EPS (TTM)
₹-0.18
Loss-making
Negative earnings per share — the business is losing money
ROE
-3.8%
Weak
Weak capital efficiency
ROCE
0.1%
Weak
Low return on total capital employed
Debt/Equity
0.11x
Low
Conservative leverage
Revenue Growth (YoY)
13.3%
Healthy
Healthy top-line growth
Profit Growth (YoY)
6.5%
Modest
Slow profit growth
Dividend Yield
None
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
₹14.39
Operating Margin
0.1%
Weak
Thin margins leave little room for error
Net Margin
-0.3%
Weak
Very little revenue reaches the bottom line
Current Ratio
1.06
Adequate
Adequate, but no real cushion
Beta (vs Nifty)
-0.03
Defensive
Steadier than the market
52W Range Position
57%
Mid-range
Mid-range
Technical Snapshot
SMA 20 / SMA 50
14.9 / 14.3
Bullish alignment (short > long)
Price vs SMA 200
Below
Long-term downtrend
RSI (14)
27.3
Oversold zone
Financial Trend (4-Year)
Metric
FY23
FY24
FY25
FY26
3Y CAGR
Revenue
₹1 Cr
—
₹1 Cr
₹15 Cr
+145.1%
EBITDA
-₹0 Cr
-₹0 Cr
-₹0 Cr
₹0 Cr
—
EBITDA Margin
-7.7%
—
-9.1%
0.1%
—
PAT (Net Profit)
-₹0 Cr
-₹0 Cr
-₹0 Cr
-₹0 Cr
—
EPS
₹-0.18
₹-0.21
₹-0.18
₹-0.17
—
ROE
-3.7%
-4.3%
-3.9%
-3.8%
—
ROCE
-3.3%
-4.3%
-3.9%
0.1%
—
Total Debt
₹0 Cr
₹0 Cr
₹0 Cr
₹0 Cr
-3.9%
Free Cash Flow
-₹0 Cr
-₹0 Cr
-₹0 Cr
₹0 Cr
—
🟢 Revenue has grown at 145.1% a year over 3 years.
🟢 EBITDA has turned positive, from -₹0 Cr to ₹0 Cr.
🟢 EBITDA Margin has risen from -7.7% to 0.1% over 3 years (+7.8 pts).
🟡 ROE has held roughly flat at -3.8% over 3 years.
🟢 ROCE has risen from -3.3% to 0.1% over 3 years (+3.4 pts).
🟢 Total Debt has shrunk at 3.9% a year over 3 years.
🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹0 Cr.
🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.
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 QualityWeak7.5/20
🟢Financial HealthStrong16.5/20
🟢GrowthStrong13/20
🔴ProfitabilityWeak1.3/15
🔴ValuationDemanding5.1/15
🟡RiskModerate6.2/10
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. 2 high-severity red flags sit above this conclusion and should be read first.
This thesis breaks if
✓Revenue growth stays above 109% a year145.1% CAGR
