Minaxi Textiles Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹1.26−₹0.07 (−5.26%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:55 pm

Understanding the Business

Company site ↗

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

What does this company do?

Minaxi Textiles Limited engages in weaving, manufacturing, and selling cotton and cotton mixture fabrics in India. It offers suiting lycra fabric, cotton quilts, broken twill fabric, and satin fabric.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees17

Annual revenue₹23 Cr

How does it make money?

Turns over ₹23 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 17 employees supports ₹1.33 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.33 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?Some evidence

ROCE of 30.4% 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 -16% while net margin moved -134% 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-16%

Margin effect-134%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.6% a year
✗ Profit fell 94.6% in the latest year

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

49/ 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

63.0x

Sector Median

69.2x

median of 4 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

69.2x median of 4 peers · -9%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

22.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -20.8% to 3.6% over 3 years.
Debt is being paid down
Total debt is down 40% over 3 years.
Return on equity is rising
ROE has improved from -104.9% to 42.5%.
Return on capital is rising
ROCE has improved from -34.7% to 30.4%.
High return on capital employed
ROCE of 30.4% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 2.90x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from -20.8% to 3.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 40% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 15.0x 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
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 2%✓ 3.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 15.0x
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✓ 3.5x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 27%✓ 30.4%
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 · 3 neutral · 3 weak

Market Cap

₹6 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

63.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.39x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.02

Profitable

Profitable on a per-share basis

ROE

42.5%

Strong

Strong capital efficiency

ROCE

30.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.90x

High

High leverage

Revenue Growth (YoY)

9.7%

Modest

Modest growth

Profit Growth (YoY)

-94.6%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.8%

Average

Average margins

Net Margin

0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.16

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.22

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1.3 / 1.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹27 Cr	₹33 Cr	₹29 Cr	₹23 Cr	-5.6%
EBITDA	-₹6 Cr	-₹3 Cr	₹1 Cr	₹1 Cr	—
EBITDA Margin	-20.8%	-8.6%	3.0%	3.6%	—
PAT (Net Profit)	-₹6 Cr	-₹3 Cr	-₹1 Cr	₹2 Cr	—
EPS	₹-1.26	₹-0.63	₹-0.11	₹0.36	—
ROE	-104.9%	-111.4%	-22.8%	42.5%	—
ROCE	-34.7%	-22.0%	10.3%	30.4%	—
Total Debt	₹20 Cr	₹17 Cr	₹14 Cr	₹12 Cr	-15.7%
Free Cash Flow	₹3 Cr	₹5 Cr	₹3 Cr	₹0 Cr	-75.8%

🔴 Revenue has shrunk at 5.6% a year over 3 years.

🟢 EBITDA has turned positive, from -₹6 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -20.8% to 3.6% over 3 years (+24.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹6 Cr to ₹2 Cr.

🟢 EPS has turned positive, from ₹-1.26 to ₹0.36.

🟢 ROE has risen from -104.9% to 42.5% over 3 years (+147.4 pts).

🟢 ROCE has risen from -34.7% to 30.4% over 3 years (+65.1 pts).

🟢 Total Debt has shrunk at 15.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 75.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹22 Cr

Total Liabilities

₹18 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

44.8%

Corporate Actions

Ex-Dividend Date

20 Sept 2007

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 positive3 mixed1 negative1 general

Minaxi Textiles passes all AGM resolutions with near-unanimous support

scanx.trade, 25 Sept

Minaxi Textiles Limited Submits Audited Financial Results for Year Ended 31st March, 2026 to BSE

scanx.trade, 11 MayResults

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

Schneider Electric President Systems standalone net profit declines 45.09% in the June 2026 quarter

Business Standard, 12 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Minaxi Textiles (BSE:531456) Stock Forecast & Analyst Predictions

Simply Wall Street, 15 NovAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Q4 Results Today: SBI, Swiggy, Hyundai Motor, Urban Company Over 75 Companies To Declare Earnings

NDTV Profit, 08 MayResults

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

Motisons Jewellers standalone net profit rises 37.61% in the June 2026 quarter

Business Standard, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

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

DalalBaazaar Thesis

StrongProfitability

MiddlingBusiness Quality · Financial Health · Valuation

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

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑