Lovable Lingerie Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹70.99+₹0.77 (+1.10%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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.

Understanding the Business

Company site ↗

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

What does this company do?

Lovable Lingerie Limited manufactures and sells hosiery garment products in India. The company provides brassieres, panties, lingerie accessories, and garments. It offers its products under the Lovable and Daisy Dee brand names.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees493

Annual revenue₹42 Cr

How does it make money?

Turns over ₹42 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹-4 left at the operating level before interest, tax and depreciation. Each of its 493 employees supports ₹8.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-3.6%

Net margin7.9%

Revenue / employee₹8.6 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.

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 0.6% 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.

ROCE0.6%

ROE1.9%

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 -56% while net margin moved -10657% 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-56%

Margin effect-10657%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 23.8% a year
✗ Profit fell 1.6% in the latest year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

82/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

18.6x

2Y Median

46.0x

28 monthly readings · mean 49.2x · range 26.5x–78.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 60% below its 2y median of 46.0x. 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 73% below the peer median of 69.2x.

vs. its own history

Cheap

46.0x median over 28 months · -60%

vs. sector peers

Cheap

69.2x median of 4 peers · -73%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.6x

P/B

0.58x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 58% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Valuation below its historical average
At 18.6x the stock trades 60% below its own median of 46.0x.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from -1.0% to -3.6% over 3 years.
Receivables growing faster than sales
Receivables are up 22% against revenue growth of -56% — customers are taking longer to pay.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.51x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 22% against revenue up -56% — sales are being booked faster than they are collected.
🟡Margins are compressingFinancial
EBITDA margin is down 2.6 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 58% 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 60% 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 73% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from -1.0% to -3.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 1.51x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 22% against revenue up -56%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 -6%✓ -3.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 0.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 46.0x✓ 18.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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 · 3 neutral · 5 weak

Market Cap

₹105 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.6x

Fair

Fairly valued against the generic band

P/B Ratio

0.58x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.81

Profitable

Profitable on a per-share basis

ROE

1.9%

Weak

Weak capital efficiency

ROCE

0.6%

Weak

Low return on total capital employed

Debt/Equity

1.51x

High

High leverage

Revenue Growth (YoY)

-22.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-1.6%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹70.99

P/E (Forward)

4.0x

Improving

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

Operating Margin

10.0%

Average

Average margins

Net Margin

8.5%

Average

Average bottom-line conversion

Current Ratio

5.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

69.6 / 71.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹95 Cr	₹64 Cr	₹42 Cr	₹42 Cr	-23.8%
EBITDA	-₹1 Cr	₹1 Cr	-₹11 Cr	-₹2 Cr	—
EBITDA Margin	-1.0%	1.1%	-25.2%	-3.6%	—
PAT (Net Profit)	-₹0 Cr	₹4 Cr	₹2 Cr	₹3 Cr	—
EPS	₹-0.05	₹2.89	₹1.21	₹2.26	—
ROE	-0.0%	2.4%	1.0%	1.9%	—
ROCE	0.2%	3.0%	-1.9%	0.6%	—
Total Debt	₹7 Cr	₹10 Cr	₹10 Cr	₹3 Cr	-25.2%
Free Cash Flow	-₹7 Cr	-₹8 Cr	₹5 Cr	₹2 Cr	—

🔴 Revenue has shrunk at 23.8% a year over 3 years.

🔴 EBITDA Margin has fallen from -1.0% to -3.6% over 3 years (-2.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹3 Cr.

🟢 EPS has turned positive, from ₹-0.05 to ₹2.26.

🟢 ROE has risen from -0.0% to 1.9% over 3 years (+1.9 pts).

🟡 ROCE has held roughly flat at 0.6% over 3 years.

🟢 Total Debt has shrunk at 25.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹198 Cr

Total Liabilities

₹17 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.0%

Corporate Actions

Ex-Dividend Date

21 Sept 2022

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 positive2 mixed3 general

Compare with LOVABLE LINGERIE

Equitymaster, 16 Oct

Lovable Lingerie Share Price Target 2026: Rs 89.1 Analyst Forecast

Univest, 23 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Lovable Lingerie FY26 net profit rises to ₹334.78 lakh

scanx.trade, 29 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Why Is Lovable Lingerie Share Price Falling Key Reasons 2026

Univest, 16 JunPrice 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.

FASCINATE Stock Price and Chart — NSE:FASCINATE

TradingView, 14 Aug

Lovable Lingerie Limited (LOVABLE.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 26 Nov

Watch Items

Revenue growth is negative (-22.2%) 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

🟡Business QualityAdequate9/20

🟢Financial HealthStrong13.3/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak6.2/15

🟢ValuationAttractive12/15

🔴RiskHigh3.9/10

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -6%-3.6%
✗Interest cover stays above 3x2.6x
✓Free cash flow remains positive₹2 Cr
✗ROCE stays above 8%0.6%
✓Valuation vs its own median of 46.0x18.6x today