Laxmi Cotspin Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹12.80+₹0.12 (+0.95%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Laxmi Cotspin Limited engages in the processing of textiles in India. The company provides cotton yarn, as well as ring spinning, open end, and TFO yarns; cotton bales; oilseeds; and oil mill products, such as gold and silver oil cake, wash oil, and oil sediment.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees271

Annual revenue₹151 Cr

How does it make money?

Turns over ₹151 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 271 employees supports ₹55.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹55.6 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 4.6% 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.

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 -81% 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-81%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✓ ROE has improved by 10.3 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

36/ 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.

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

EV/EBITDA

16.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -0.5% to 2.7% over 3 years.
Return on equity is rising
ROE has improved from -12.3% to -2.0%.
Return on capital is rising
ROCE has improved from -6.9% to 4.6%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.8x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -0.5% to 2.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 10.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 1.7% 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.
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 1%✓ 2.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 10.6x
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✗ 0.8x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 1.7% CAGR
Latest reported year was -63.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹22 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

0.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-1.72

Loss-making

Negative earnings per share — the business is losing money

ROE

-2.0%

Weak

Weak capital efficiency

ROCE

4.6%

Weak

Low return on total capital employed

Debt/Equity

0.70x

Moderate

Moderate leverage

Revenue Growth (YoY)

-63.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-359.6%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.6%

Weak

Thin margins leave little room for error

Net Margin

-2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.56

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

12.9 / 13.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹143 Cr	₹144 Cr	₹150 Cr	₹151 Cr	+1.7%
EBITDA	-₹1 Cr	₹7 Cr	₹3 Cr	₹4 Cr	—
EBITDA Margin	-0.5%	5.2%	1.7%	2.7%	—
PAT (Net Profit)	-₹6 Cr	-₹0 Cr	₹0 Cr	-₹1 Cr	—
EPS	₹-3.42	₹-0.16	₹0.27	₹-0.7	—
ROE	-12.3%	-0.4%	0.7%	-2.0%	—
ROCE	-6.9%	5.2%	6.8%	4.6%	—
Total Debt	₹42 Cr	₹50 Cr	₹47 Cr	₹43 Cr	+0.3%
Free Cash Flow	₹3 Cr	-₹9 Cr	-₹3 Cr	₹3 Cr	-4.5%

🟡 Revenue has been broadly flat over 3 years (1.7% a year).

🟢 EBITDA has turned positive, from -₹1 Cr to ₹4 Cr.

🟢 EBITDA Margin has risen from -0.5% to 2.7% over 3 years (+3.2 pts).

🟢 ROE has risen from -12.3% to -2.0% over 3 years (+10.3 pts).

🟢 ROCE has risen from -6.9% to 4.6% over 3 years (+11.6 pts).

🟡 Total Debt has been broadly flat over 3 years (0.3% a year).

🔴 Free Cash Flow has shrunk at 4.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹112 Cr

Total Liabilities

₹51 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹3 Cr

Corporate Actions

Ex-Dividend Date

02 Aug 2018

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 mixed3 general

Laxmi Cotspin Q2 FY27 Results Preview

Univest, 17 SeptResults

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

Laxmi Cotspin LAXMICOT Regulation 74(5) Certificate Q2 FY27

Kalkine India, 12 OctResults

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

Laxmi Cotspin Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

Laxmi Cotspin Bull Case vs Bear Case for 2026

Univest, 15 Sept

Aerpace Industries reports consolidated net loss of Rs 4.12 crore in the June 2026 quarter

Business Standard, 12 AugResults

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

Laxmi Cotspin (NSEI:LAXMICOT) - Stock Analysis

Simply Wall Street, 31 Mar

Watch Items

Revenue growth is negative (-63.9%) 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

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

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.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑