Marc Loire Fashions Limited

Consumer Cyclical — Footwear & Accessories · BSE

₹46.40+₹2.85 (+6.54%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Marc Loire Fashions Limited manufactures and sells footwear and other accessories in India. It operates through two segments: Footwear and Apparels & its accessories.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees48

Annual revenue₹35 Cr

How does it make money?

Turns over ₹35 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 48 employees supports ₹73.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹73.7 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 8.1% 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 +185% 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+185%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

64/ 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

17.2x

1.4Y Median

7.0x

17 monthly readings · mean 7.5x · range 5.5x–11.2x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 145% above its 1.4y median of 7.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 75% below the peer median of 69.2x.

vs. its own history

Expensive

7.0x median over 17 months · +145%

vs. sector peers

Cheap

69.2x median of 4 peers · -75%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.0x

PEG

0.44

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 2.4% to 7.9% over 3 years.
Very low debt
Debt/Equity of -0.13x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 33.3% to 5.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 44.5% to 8.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Inventory building faster than salesFinancial
Inventory up 1391% against revenue up -5% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹14 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.4% 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 75% 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 price already assumes success
The stock trades 145% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 33.3% to 5.3%. 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 6%✓ 7.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ -0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 8.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 7.0x✗ 17.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

3 good · 5 neutral · 3 weak

Market Cap

₹33 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.2x

Fair

Fairly valued against the generic band

P/B Ratio

0.98x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.7

Profitable

Profitable on a per-share basis

ROE

8.0%

Moderate

Moderate capital efficiency

ROCE

8.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

-0.13x

Low

Conservative leverage

Revenue Growth (YoY)

-25.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-82.8%

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

-₹15 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

5.1%

Average

Average asset productivity

Operating Margin

4.8%

Weak

Thin margins leave little room for error

Net Margin

5.0%

Average

Average bottom-line conversion

Current Ratio

7.29

Comfortable

Healthy short-term liquidity

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

40.3 / 38.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

71.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹37 Cr	₹40 Cr	₹42 Cr	₹35 Cr	-1.8%
EBITDA	₹1 Cr	₹6 Cr	₹7 Cr	₹3 Cr	+45.7%
EBITDA Margin	2.4%	14.2%	15.7%	7.9%	—
PAT (Net Profit)	₹1 Cr	₹4 Cr	₹5 Cr	₹2 Cr	+39.2%
EPS	₹0.92	₹5.74	₹6.63	—	—
ROE	33.3%	67.4%	43.8%	5.3%	—
ROCE	44.5%	93.3%	61.4%	8.1%	—
Total Debt	—	₹1 Cr	₹0 Cr	-₹0 Cr	—
Free Cash Flow	₹1 Cr	-₹0 Cr	₹1 Cr	-₹14 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.8% a year).

🟢 EBITDA has grown at 45.7% a year over 3 years.

🟢 EBITDA Margin has risen from 2.4% to 7.9% over 3 years (+5.5 pts).

🟢 PAT (Net Profit) has grown at 39.2% a year over 3 years.

🔴 ROE has fallen from 33.3% to 5.3% over 3 years (-28.0 pts).

🔴 ROCE has fallen from 44.5% to 8.1% over 3 years (-36.4 pts).

🔴 Total Debt has turned negative, from ₹1 Cr to -₹0 Cr.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹39 Cr

Total Liabilities

₹5 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹13 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.4%

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

Marc Loire Fashions sets Oct 3 record date for EGM on capital hike

scanx.trade, 03 Oct

MARC LOIRE FASHIONS LIMITED Share Price

Upstox, 05 May

Marc Loire Fashions (BSE: 544437): FY26 Profit Dip and Inventory

Kalkine India, 06 Oct

Marc Loire Fashions sets Sept 22 record date for 13th AGM

scanx.trade, 29 Sept

Marc Loire Fashions shares list at 20% discount to IPO price on BSE

The Economic Times, 07 Jul

Marc Loire Fashions appoints Shreya Bhargava as company secretary

scanx.trade, 09 Oct

Watch Items

Revenue growth is negative (-25.9%) 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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Valuation

WeakBusiness Quality · 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 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; Valuation vs its own median of 7.0x · see Key things to watch ↑