Lambodhara Textiles Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹129.10−₹2.98 (−2.26%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Lambodhara Textiles Limited engages in the manufacture and sale of synthetic yarns in India. It operates through Textile, Power Generation, and Real Estate segments. The company offers slub, multi count and multi twist, siro, and neppy yarns.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees494

Annual revenue₹238 Cr

How does it make money?

Turns over ₹238 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 494 employees supports ₹48.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹48.2 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 11.7% 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 has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +17% while net margin moved -46% 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+17%

Margin effect-46%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.4% — barely ahead of inflation
✗ Profit has declined at 14.0% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of -8.8% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

88/ 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

10.8x

3Y Median

16.9x

40 monthly readings · mean 19.5x · range 8.2x–41.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 36% below its 3y median of 16.9x. 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 84% below the peer median of 69.2x.

vs. its own history

Cheap

16.9x median over 40 months · -36%

vs. sector peers

Cheap

69.2x median of 4 peers · -84%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 31% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.2% to 8.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.0% to 11.7% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.7x to 2.4x.
🟡Profit is decliningFinancial
Net profit is down 36% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 31% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 36% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 84% 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 ₹16 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?

Margins are being competed away
EBITDA margin has fallen from 15.8% to 13.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 5.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 16.2% to 8.6%. 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.
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.

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

1EBITDA margin holds above 11%✓ 13.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✓ 5.4% CAGR
Latest reported year was -8.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹16 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

7 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹134 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.8x

Cheap

Cheap against the generic band

P/B Ratio

1.04x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹11.98

Profitable

Profitable on a per-share basis

ROE

8.6%

Moderate

Moderate capital efficiency

ROCE

11.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

-8.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

65.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.39%

Modest

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

Free Cash Flow

₹16 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.0%

Average

Average margins

Net Margin

5.3%

Average

Average bottom-line conversion

Current Ratio

3.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

65%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

130.8 / 128.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹203 Cr	₹195 Cr	₹232 Cr	₹238 Cr	+5.4%
EBITDA	₹32 Cr	₹22 Cr	₹27 Cr	₹31 Cr	-0.9%
EBITDA Margin	15.8%	11.2%	11.5%	13.2%	—
PAT (Net Profit)	₹17 Cr	₹5 Cr	₹7 Cr	₹11 Cr	-14.0%
EPS	₹16.67	₹4.44	₹6.58	₹10.6	-14.0%
ROE	16.2%	4.2%	5.8%	8.6%	—
ROCE	15.0%	6.4%	9.3%	11.7%	—
Total Debt	₹56 Cr	₹57 Cr	₹48 Cr	₹39 Cr	-11.5%
Free Cash Flow	-₹7 Cr	₹3 Cr	₹14 Cr	₹16 Cr	—

🟢 Revenue has grown at 5.4% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-0.9% a year).

🔴 EBITDA Margin has fallen from 15.8% to 13.2% over 3 years (-2.7 pts).

🔴 PAT (Net Profit) has shrunk at 14.0% a year over 3 years.

🔴 EPS has shrunk at 14.0% a year over 3 years.

🔴 ROE has fallen from 16.2% to 8.6% over 3 years (-7.6 pts).

🔴 ROCE has fallen from 15.0% to 11.7% over 3 years (-3.3 pts).

🟢 Total Debt has shrunk at 11.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹16 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹194 Cr

Total Liabilities

₹66 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹25 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.2%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

22 Sept 2026

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 positive1 mixed4 general

Lambodhara Textiles (LAMBODHARA.NS) Eases 1.66% to ₹126.51 as Stock Holds Above Key Support - High Conviction Picks

https://www.siam.in/, 05 Oct

Lambodhara Textiles Share Price Falls Sharply

Kalkine India, 16 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Lambodhara Textiles Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Lambodhara Textiles Ltd Upgraded to Buy on Strong Valuation and Financial Performance

MarketsMojo, 08 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Volume Gainers, August 24, 2026 at 3:00 PM IST

HDFC Sky, 24 Aug

Lambodhara Textiles NSE:LAMBODHARA Price Movement Clarification

Kalkine India, 26 Aug

Watch Items

Revenue growth is negative (-8.8%) 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

StrongFinancial Health · Valuation

MiddlingBusiness Quality

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

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 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑