New Light Industries Limited

Consumer Cyclical — Apparel Manufacturing · BSE

₹1.34₹0.00 (0.00%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

New Light Industries Limited manufactures and sells garments, tailored apparel and uniforms in India and internationally.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees3

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹2.37 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.37 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 3.8% 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.

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 +17% while net margin moved -169% 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+17%

Margin effect-169%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.2% — barely ahead of inflation
✗ Latest-year revenue growth of -14.0% is below the longer-term trend — momentum is fading
✗ Profit fell 80.0% in the latest year

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

52/ 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

33.5x

2Y Median

13.8x

28 monthly readings · mean 49.2x · range 8.7x–406.2x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 143% above its 2y median of 13.8x. 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 52% below the peer median of 69.2x.

vs. its own history

Expensive

13.8x median over 28 months · +143%

vs. sector peers

Cheap

69.2x median of 4 peers · -52%

vs. generic bands

Fair

15x–35x

EV/EBITDA

25.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from -5.6% to 6.1% over 3 years.
Debt is being paid down
Total debt is down 100% over 3 years.
Cash generation is improving
Free cash flow is up 58% over 3 years.
Return on equity is rising
ROE has improved from -30.2% to 2.8%.
Return on capital is rising
ROCE has improved from -19.5% to 3.8%.
Very low debt
Debt/Equity of 0.06x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 299% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -5.6% to 6.1%. 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 100% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 52% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹0 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 143% 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.
Growth barely outpaces inflation
Revenue compounding at 5.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 4%✓ 6.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.2% CAGR
Latest reported year was -14.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 3.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

4 good · 3 neutral · 4 weak

Market Cap

₹12 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.5x

Fair

Fairly valued against the generic band

P/B Ratio

0.78x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.04

Profitable

Profitable on a per-share basis

ROE

2.8%

Weak

Weak capital efficiency

ROCE

3.8%

Weak

Low return on total capital employed

Debt/Equity

0.06x

Low

Conservative leverage

Revenue Growth (YoY)

-14.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-80.0%

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

2.8%

Weak

Thin margins leave little room for error

Net Margin

3.0%

Average

Average bottom-line conversion

Current Ratio

24.39

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.22

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1.3 / 1.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹12 Cr	₹17 Cr	₹7 Cr	+5.2%
EBITDA	-₹0 Cr	₹0 Cr	₹1 Cr	₹0 Cr	—
EBITDA Margin	-5.6%	3.7%	6.2%	6.1%	—
PAT (Net Profit)	-₹1 Cr	₹0 Cr	₹1 Cr	₹0 Cr	—
EPS	₹-0.24	₹0.17	₹0.14	₹0.05	—
ROE	-30.2%	11.1%	7.9%	2.8%	—
ROCE	-19.5%	11.5%	7.0%	3.8%	—
Total Debt	₹5 Cr	₹4 Cr	₹0 Cr	₹0 Cr	-87.6%
Free Cash Flow	₹0 Cr	₹0 Cr	-₹7 Cr	₹0 Cr	+16.4%

🟢 Revenue has grown at 5.2% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EBITDA Margin has risen from -5.6% to 6.1% over 3 years (+11.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-0.24 to ₹0.05.

🟢 ROE has risen from -30.2% to 2.8% over 3 years (+33.1 pts).

🟢 ROCE has risen from -19.5% to 3.8% over 3 years (+23.3 pts).

🟢 Total Debt has shrunk at 87.6% a year over 3 years.

🟢 Free Cash Flow has grown at 16.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

49.4%

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

2 negative4 general

New Light Industries Q1 Results: Net profit falls 79% YoY to ₹5.64 lakh

scanx.trade, 13 AugResults

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

87 Best Penny Stocks Under 5 Rs In India For October 2026

Samco, 14 Oct

New Light Industries Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

Lighting Market By Lighting Type & Application | Report [2034]

Fortune Business Insights, 28 Sept

New Light Industries revenue falls 59% in FY26 to ₹709.04 lakh

scanx.trade, 07 SeptResults

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

New Light Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Watch Items

Revenue growth is negative (-14.0%) 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

StrongFinancial Health

MiddlingProfitability · Valuation

WeakBusiness Quality · Growth · 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 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑