Mahalaxmi Fabric Mills Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹19.75₹0.00 (0.00%)

DalalBaazaar Score

30 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mahalaxmi Fabric Mills Limited manufactures and trades in traditional textile and technical textile products in India. The company offers finished and processed, cotton, polyester, denim, bottom-weight, and other fabrics. It also engages in fabric print and fab dyeing activities.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees119

Annual revenue₹127 Cr

How does it make money?

Turns over ₹127 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 119 employees supports ₹1.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.06 Cr

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 2.3% 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 -11% while net margin moved -92% 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-11%

Margin effect-92%

DalalBaazaar Score

30/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

26/ 100

Weak

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

Valuation

54/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

7.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 3.3% to 10.5% over 3 years.

🔴 What Needs Attention0

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

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 161% over 3 years, from ₹30 Cr to ₹77 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.3x to 1.0x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.87 — 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 3.3% to 10.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.8x 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.
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 9%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹31 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 2.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹21 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.21x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-2.42

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.0%

Weak

Weak capital efficiency

ROCE

2.3%

Weak

Low return on total capital employed

Debt/Equity

0.79x

Moderate

Moderate leverage

Revenue Growth (YoY)

-9.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-98.4%

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

-₹31 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.6%

Weak

Thin margins leave little room for error

Net Margin

-1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.87

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.23

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

18.8 / 18.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

62.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹143 Cr	₹159 Cr	₹144 Cr	₹127 Cr	-3.9%
EBITDA	₹5 Cr	₹8 Cr	₹4 Cr	₹13 Cr	+41.4%
EBITDA Margin	3.3%	5.0%	2.5%	10.5%	—
PAT (Net Profit)	-₹0 Cr	₹1 Cr	₹8 Cr	-₹0 Cr	—
EPS	₹-0.31	₹1.34	₹7.45	₹-0.02	—
ROE	-0.4%	1.6%	8.1%	-0.0%	—
ROCE	2.5%	4.1%	10.9%	2.3%	—
Total Debt	₹30 Cr	₹36 Cr	₹44 Cr	₹77 Cr	+37.7%
Free Cash Flow	-₹96 Cr	-₹6 Cr	-₹13 Cr	-₹31 Cr	—

🔴 Revenue has shrunk at 3.9% a year over 3 years.

🟢 EBITDA has grown at 41.4% a year over 3 years.

🟢 EBITDA Margin has risen from 3.3% to 10.5% over 3 years (+7.2 pts).

🟡 ROE has held roughly flat at -0.0% over 3 years.

🟡 ROCE has held roughly flat at 2.3% over 3 years.

🔴 Total Debt has grown at 37.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹200 Cr

Total Liabilities

₹102 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹40 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.6%

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

Mahalaxmi Fabric Mills (MFML.NS) Trades Higher: Shares Up 2.17% to ₹18.39 - Factor Crowding

https://www.siam.in/, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Mahalaxmi Fabric Mills holds 35th AGM on September 30

scanx.trade, 30 Sept

Mahalaxmi Fabric Mills passes all FY26 AGM resolutions with requisite majority

scanx.trade, 01 Oct

RSD Finance Ltd leads gainers in 'B' group

Business Standard, 31 Jul

Mahalaxmi Fabric Mills Limited (MFML) Company Information

Simply Wall Street, 30 Aug

Control Print Ltd leads losers in 'B' group

Business Standard, 23 Jul

Watch Items

Revenue growth is negative (-9.6%) 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

MiddlingValuation

WeakBusiness Quality · Financial Health · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑