Nivaka Fashions Limited

Consumer Cyclical — Apparel Manufacturing · BSE

₹0.70−₹0.01 (−1.41%)

DalalBaazaar Score

32 / 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, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Nivaka Fashions Limited engages in the manufacturing, trading, and sale of ethnic wear products for men and women in India and internationally.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees10

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹-31569 reaches shareholders as profit, with ₹-27269 left at the operating level before interest, tax and depreciation. Each of its 10 employees supports ₹16,500 of revenue a year, the signature of a people-led business.

EBITDA margin-27269.0%

Net margin-31569.1%

Revenue / employee₹16,500

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 -91.2% 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.

ROCE-91.2%

ROE-119.0%

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 -100% while net margin moved -5732046% 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-100%

Margin effect-5732046%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROCE of -91.2% is below 10% — capital is not working hard
✗ ROCE has fallen by 92.4 points — returns are eroding
✗ EBITDA margin of -27269.0% is thin — little cushion if costs rise
✗ The business is lossmaking at the net level

Quality vs. Valuation

Company Quality

31/ 100

Weak

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

Valuation

29/ 100

Expensive

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

P/E (Trailing)

Not meaningful

P/B

1.65x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 52% over 3 years.
Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 9.3% to -27269.0% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 0.2% to -119.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 1.2% to -91.2% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.47 — near-term obligations exceed near-term assets.

Red Flags

6 items require attention · 3 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -26.4x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹5 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 27278.2 points, from 9.3% to -27269.0%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -1.5x to -26.4x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.47 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 52% 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?

Margins are being competed away
EBITDA margin has fallen from 9.3% to -27269.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 0.2% to -119.0%. 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.
Several serious flags at once
3 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 -27271%✓ -27269.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -26.4x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -91.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

₹7 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

1.65x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.47

Loss-making

Negative earnings per share — the business is losing money

ROE

-119.0%

Weak

Weak capital efficiency

ROCE

-91.2%

Weak

Low return on total capital employed

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

-98.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-934.1%

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

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹0.7

Operating Margin

-81810.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.47

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.14

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.7 / 0.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

8.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹2 Cr	₹1 Cr	₹0 Cr	-84.1%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	-₹4 Cr	—
EBITDA Margin	9.3%	30.7%	14.8%	-27269.0%	—
PAT (Net Profit)	₹0 Cr	-₹0 Cr	-₹1 Cr	-₹5 Cr	—
EPS	₹0	₹-0.02	₹-0.05	₹-0.51	—
ROE	0.2%	-2.5%	-5.3%	-119.0%	—
ROCE	1.2%	-0.6%	-2.6%	-91.2%	—
Total Debt	₹2 Cr	₹2 Cr	₹2 Cr	₹1 Cr	-21.5%
Free Cash Flow	₹1 Cr	₹1 Cr	-₹2 Cr	-₹6 Cr	—

🔴 Revenue has shrunk at 84.1% a year over 3 years.

🔴 EBITDA has turned negative, from ₹0 Cr to -₹4 Cr.

🔴 EBITDA Margin has fallen from 9.3% to -27269.0% over 3 years (-27278.2 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹5 Cr.

🔴 EPS has turned negative, from ₹0 to ₹-0.51.

🔴 ROE has fallen from 0.2% to -119.0% over 3 years (-119.2 pts).

🔴 ROCE has fallen from 1.2% to -91.2% over 3 years (-92.4 pts).

🟢 Total Debt has shrunk at 21.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9 Cr

Total Liabilities

₹4 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.6%

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

2 mixed1 negative3 general

Nivaka Fashions Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Nivaka Fashions CFO Mitesh Thakkar resigns as executive director

scanx.trade, 07 OctManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Nivaka Fashions Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Nivaka Fashions discloses voting results of 43rd AGM held on Sep 28

scanx.trade, 28 SeptResults

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

Nivaka Fashions (BSE:542206) - Stock Analysis

Simply Wall Street, 25 Sept

Nivaka Fashions FY26 Results: Net loss widens to ₹520.89 lakh

scanx.trade, 03 SeptResults

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

Watch Items

Revenue growth is negative (-98.9%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟡Financial HealthAdequate9.6/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak3.8/15

🔴ValuationDemanding5.1/15

🔴RiskHigh4/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -27271%-27269.0%
✗Free cash flow remains positive-₹6 Cr
✗Interest cover stays above 3x-26.4x
✗ROCE stays above 8%-91.2%