Maral Overseas Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹56.10−₹0.85 (−1.49%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Maral Overseas Limited, a textile company, produces and sells yarns, fabrics, and apparel in India, North America, Europe, Gulf, the Middle East, the Far East and South East Asia, Africa, and internationally. It operates in three segments: Yarn, Fabric, and Garment.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees4,584

Annual revenue₹955 Cr

How does it make money?

Turns over ₹955 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 4,584 employees supports ₹20.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹20.8 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 11.2% 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 -121% 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-121%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.6% a year

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

76/ 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

10.7x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 85% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 3.6% to 7.9% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -11.3% to 2.9%.
Return on capital is rising
ROCE has improved from 1.2% to 11.2%.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 2 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 3.65x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🟡Receivables growing faster than salesFinancial
Receivables up 28% against revenue up -5% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.93 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.6% to 7.9%. 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 85% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.0x 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 28% against revenue up -5%. 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.
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 6%✓ 7.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.0x
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✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹75 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 11.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 4 neutral · 2 weak

Market Cap

₹233 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.7x

Cheap

Cheap against the generic band

P/B Ratio

2.10x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.26

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

11.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.65x

High

High leverage

Revenue Growth (YoY)

16.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

113.5%

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

₹75 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.3%

Weak

Thin margins leave little room for error

Net Margin

2.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.93

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

58.3 / 57.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,002 Cr	₹960 Cr	₹1,019 Cr	₹955 Cr	-1.6%
EBITDA	₹36 Cr	₹60 Cr	₹50 Cr	₹75 Cr	+28.2%
EBITDA Margin	3.6%	6.2%	4.9%	7.9%	—
PAT (Net Profit)	-₹16 Cr	-₹10 Cr	-₹24 Cr	₹3 Cr	—
EPS	₹-3.84	₹-2.35	₹-5.83	₹0.79	—
ROE	-11.3%	-7.4%	-22.2%	2.9%	—
ROCE	1.2%	6.6%	3.1%	11.2%	—
Total Debt	₹372 Cr	₹476 Cr	₹449 Cr	₹374 Cr	+0.2%
Free Cash Flow	-₹77 Cr	-₹64 Cr	₹44 Cr	₹75 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.6% a year).

🟢 EBITDA has grown at 28.2% a year over 3 years.

🟢 EBITDA Margin has risen from 3.6% to 7.9% over 3 years (+4.3 pts).

🟢 PAT (Net Profit) has turned positive, from -₹16 Cr to ₹3 Cr.

🟢 EPS has turned positive, from ₹-3.84 to ₹0.79.

🟢 ROE has risen from -11.3% to 2.9% over 3 years (+14.2 pts).

🟢 ROCE has risen from 1.2% to 11.2% over 3 years (+10.0 pts).

🟡 Total Debt has been broadly flat over 3 years (0.2% a year).

🟢 Free Cash Flow has turned positive, from -₹77 Cr to ₹75 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹690 Cr

Total Liabilities

₹580 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹90 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.3%

Corporate Actions

Ex-Dividend Date

17 Aug 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 mixed5 general

Maral Overseas vs Nifty 50: Share Price Performance Compared

Univest, 06 Oct

Maral Overseas to consolidate garment unit operations in Noida by August 31

scanx.trade, 09 Jun

Maral Overseas reports standalone net profit of Rs 5.98 crore in the June 2026 quarter

Business Standard, 30 JulResults

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

Maral Overseas Share Price Forecast: 3 Year Outlook to 2030

Univest, 21 Jul

Maral Overseas Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 22 Sept

Maral Overseas Shareholders Overwhelmingly Approve Independent Director Appointment

scanx.trade, 22 Dec

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Profitability

WeakFinancial Health · Growth · Risk

Points for each in the Score ↑

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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑