Manomay Tex India Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹247.65+₹4.06 (+1.67%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

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

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Manomay Tex India Limited manufactures and sells denims and denim fabrics in India and internationally. It also offers cotton yarn/textured yarn.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees1,165

Annual revenue₹691 Cr

How does it make money?

Turns over ₹691 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 1,165 employees supports ₹59.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹59.4 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?Some evidence

ROCE of 16.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +2% while net margin moved +48% 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+2%

Margin effect+48%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 2.03x is high — earnings must service borrowings before shareholders see anything
• Current ratio of 1.37 covers short-term liabilities, without much slack
✓ Free cash flow is positive — the business funds its own capex
✗ Interest cover of only 1.8x — little room if profits dip
✗ Debt has grown 33.8% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

67/ 100

Fair

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

22.2x

3Y Median

22.0x

40 monthly readings · mean 21.9x · range 14.1x–36.5x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 22.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 68% below the peer median of 69.2x.

vs. its own history

Fair

22.0x median over 40 months · +1%

vs. sector peers

Cheap

69.2x median of 4 peers · -68%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.2x

PEG

1.49

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 6.3% to 12.4% 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 Attention0

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

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 139% over 3 years, from ₹145 Cr to ₹348 Cr.
🔴High leverageFinancial
Debt/Equity of 2.03x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.8x — little room if earnings dip.
🔴Inventory building faster than salesFinancial
Inventory up 120% against revenue up 2% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 24% against revenue up 2% — 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 6.3% to 12.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 68% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

The debt load needs earnings to hold up
Debt is 4.0x 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 24% against revenue up 2%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 0.8% 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.
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
4 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 10%✓ 12.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.0x
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✗ 1.8x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 0.8% CAGR
Latest reported year was 20.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.

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

5 good · 5 neutral · 1 weak

Market Cap

₹447 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.2x

Fair

Fairly valued against the generic band

P/B Ratio

2.61x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.16

Profitable

Profitable on a per-share basis

ROE

11.5%

Moderate

Moderate capital efficiency

ROCE

16.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.03x

High

High leverage

Revenue Growth (YoY)

20.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.4%

Average

Average margins

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.08

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

235.7 / 227.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

73.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹675 Cr	₹565 Cr	₹672 Cr	₹691 Cr	+0.8%
EBITDA	₹42 Cr	₹50 Cr	₹87 Cr	₹86 Cr	+26.8%
EBITDA Margin	6.3%	8.8%	13.0%	12.4%	—
PAT (Net Profit)	₹13 Cr	₹13 Cr	₹19 Cr	₹20 Cr	+14.9%
EPS	₹8.72	₹7.2	₹10.67	₹10.88	+7.7%
ROE	11.2%	10.1%	13.0%	11.5%	—
ROCE	15.6%	10.7%	16.9%	16.5%	—
Total Debt	₹145 Cr	₹300 Cr	₹329 Cr	₹348 Cr	+33.8%
Free Cash Flow	-₹4 Cr	-₹141 Cr	-₹17 Cr	₹5 Cr	—

🟡 Revenue has been broadly flat over 3 years (0.8% a year).

🟢 EBITDA has grown at 26.8% a year over 3 years.

🟢 EBITDA Margin has risen from 6.3% to 12.4% over 3 years (+6.2 pts).

🟢 PAT (Net Profit) has grown at 14.9% a year over 3 years.

🟢 EPS has grown at 7.7% a year over 3 years.

🟡 ROE has held roughly flat at 11.5% over 3 years.

🟡 ROCE has held roughly flat at 16.5% over 3 years.

🔴 Total Debt has grown at 33.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹676 Cr

Total Liabilities

₹505 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹26 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.4%

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

6 general

Manomay Tex India (MANOMAY.NS) Ticks Up to ₹240.33, Holding Firm Above ₹228 Support Zone - Low Beta Factor

https://www.siam.in/, 06 Oct

Manomay Tex India vs Nifty 50: Share Price Performance Compared

Univest, 06 Oct

Manomay Tex India adopts FY26 financials at 17th AGM

scanx.trade, 29 Sept

Manomay Tex India Ltd leads losers in 'B' group

Business Standard, 04 May

Manomay Tex India (MANOMAY.NS) Gains 2.23% to ₹234.86, Nears Key Resistance - ALMA Signal

https://www.siam.in/, 10 Sept

Manomay Tex India Share: Bull Case vs Bear Case for 2026

Univest, 16 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingBusiness Quality · Growth · Valuation · Risk

WeakFinancial Health · Profitability

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. 4 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 ↑