Mayur Leather Products Limited

Consumer Cyclical — Footwear & Accessories · BSE

₹39.51−₹1.99 (−4.80%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: Strong business and financial position. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Mayur Leather Products Limited engages in the manufacture and export of leather shoe uppers, footwear, and other leather products in India. It also offers synthetic leather footwear. The company was incorporated in 1987 and is based in Jaipur, India.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees7

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 12.8% 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.

ROCE12.8%

ROE52.2%

Peer median ROE25.9%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.44 — historically steadier than the index
✗ 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

52/ 100

Average

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

Valuation

65/ 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

1.3Y Median

169.1x

16 monthly readings · mean 129.4x · range 12.5x–204.1x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 90% below its 1.3y median of 169.1x. 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 75% below the peer median of 69.2x.

vs. its own history

Cheap

169.1x median over 16 months · -90%

vs. sector peers

Cheap

69.2x median of 4 peers · -75%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

17.2x

P/B

6.37x

EV/EBITDA

30.4x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 10% over 3 years.
Return on equity is rising
ROE has improved from -270.8% to 37.9%.
Return on capital is rising
ROCE has improved from -76.3% to 12.8%.
Valuation below its historical average
At 17.2x the stock trades 90% below its own median of 169.1x.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Short-term liquidity is tight
Current ratio of 1.00 — near-term obligations exceed near-term assets.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Short-term liquidity is tightFinancial
Current ratio of 1.00 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 90% 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 75% 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 5.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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

1Debt / EBITDA falls below 3x✗ 5.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 10%✓ 12.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 169.1x✓ 17.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 10 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)
✓ 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 · 6 neutral · 2 weak

Market Cap

₹19 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

6.37x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹2.3

Profitable

Profitable on a per-share basis

ROE

52.2%

Strong

Strong capital efficiency

ROCE

12.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.43x

Moderate

Moderate leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

1933.5%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹39.51

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.00

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

40.8 / 34.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

46.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹0 Cr	—	—	—
EBITDA	-₹2 Cr	₹0 Cr	₹0 Cr	₹1 Cr	—
EBITDA Margin	-48.9%	47.1%	—	—	—
PAT (Net Profit)	-₹3 Cr	-₹1 Cr	₹0 Cr	₹1 Cr	—
EPS	₹-7.22	₹-1.8	₹0.12	₹2.47	—
ROE	-270.8%	-42.8%	3.0%	37.9%	—
ROCE	-76.3%	-7.2%	1.5%	12.8%	—
Total Debt	₹4 Cr	₹4 Cr	₹4 Cr	₹4 Cr	-3.6%
Free Cash Flow	-₹2 Cr	-₹0 Cr	-₹1 Cr	-₹1 Cr	—

🟢 EBITDA has turned positive, from -₹2 Cr to ₹1 Cr.

🟢 PAT (Net Profit) has turned positive, from -₹3 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-7.22 to ₹2.47.

🟢 ROE has risen from -270.8% to 37.9% over 3 years (+308.6 pts).

🟢 ROCE has risen from -76.3% to 12.8% over 3 years (+89.1 pts).

🟢 Total Debt has shrunk at 3.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14 Cr

Total Liabilities

₹11 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.6%

Corporate Actions

Ex-Dividend Date

22 Sept 2016

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

Mayur Leather Products (BSE:531680) Receives Open Offer Proposal After Ownership Change

Kalkine India, 29 Sept

Mayur Leather shareholders approve director re-appointments and new auditor

scanx.trade, 29 Sept

Ghanshyam Hansrajani launches $370K open offer for Mayur Leather stake

Dealroom, 22 Sept

What Are Carton, Paper and Synthetic Leather Stocks?

Univest, 12 Oct

Mayur Leather Products (BSE: 531680) Sees Open Offer at ₹27.92 per Share by Ghanshyam Hansrajani for 26% Stake

Kalkine India, 29 Sept

Mayur Leather Products files draft offer letter for 26% stake at ₹27.92

scanx.trade, 15 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate9.8/20

🔴Financial HealthStretched8.8/20

🟡GrowthModest10/20

🟢ProfitabilityStrong10.6/15

🟡ValuationFair9.1/15

🔴RiskHigh4/10

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.

This thesis breaks if

✗Debt / EBITDA falls below 3x5.3x
✗Free cash flow remains positive-₹1 Cr
✓ROCE stays above 10%12.8%
✓Valuation vs its own median of 169.1x17.2x today