Pashupati Cotspin Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹84.93+₹4.17 (+5.16%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Pashupati Cotspin Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Pashupati Cotspin Limited engages in the ginning, manufacture, processing, and sale of cotton bales, cotton yarn, and black cotton seeds (delineate seeds) in India. It offers yarn cones, cotton cakes, and seed; eli twist and lycra cotton yarn and wash oil.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees486

Annual revenue₹677 Cr

How does it make money?

Turns over ₹677 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 486 employees supports ₹1.39 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin5.0%

Net margin1.5%

Revenue / employee₹1.39 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.

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 11.5% 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.

ROCE11.5%

ROE6.3%

Peer median ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +84% while net margin moved +46% 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+84%

Margin effect+46%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.3% is weak

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

35/ 100

Expensive

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

94.4x

3Y Median

98.9x

40 monthly readings · mean 95.2x · range 33.9x–196.9x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 98.9x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 36% above the peer median of 69.2x.

vs. its own history

Fair

98.9x median over 40 months · -5%

vs. sector peers

Expensive

69.2x median of 4 peers · +36%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

94.4x

P/B

7.85x

EV/EBITDA

42.2x

PEG

2.43

Dividend Yield

0.06%

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 43% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 7.1% to 5.0% over 3 years.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 43% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 7.1% to 5.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 36% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 17% a year✓ 22.5% CAGR
Latest reported year was 9.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 2.5x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹37 Cr
Profit that never becomes cash eventually stops being profit.

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

3 good · 5 neutral · 3 weak

Market Cap

₹1,341 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

94.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

7.85x

Rich

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

EPS (TTM)

₹0.9

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

11.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.60x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.7%

Modest

Modest growth

Profit Growth (YoY)

265.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.06%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹37 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹84.93

Operating Margin

7.8%

Average

Average margins

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.02

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.13

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

77.0 / 80.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹368 Cr	₹653 Cr	₹632 Cr	₹677 Cr	+22.5%
EBITDA	₹26 Cr	₹41 Cr	₹40 Cr	₹34 Cr	+9.2%
EBITDA Margin	7.1%	6.3%	6.3%	5.0%	—
PAT (Net Profit)	₹4 Cr	₹8 Cr	₹14 Cr	₹10 Cr	+38.9%
EPS	₹0.25	₹0.54	₹0.89	₹0.66	+37.5%
ROE	3.5%	7.0%	9.1%	6.3%	—
ROCE	9.9%	15.6%	15.7%	11.5%	—
Total Debt	₹173 Cr	₹151 Cr	₹113 Cr	₹99 Cr	-17.1%
Free Cash Flow	-₹2 Cr	₹47 Cr	₹11 Cr	₹37 Cr	—

🟢 Revenue has grown at 22.5% a year over 3 years.

🟢 EBITDA has grown at 9.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.1% to 5.0% over 3 years (-2.1 pts).

🟢 PAT (Net Profit) has grown at 38.9% a year over 3 years.

🟢 EPS has grown at 37.5% a year over 3 years.

🟢 ROE has risen from 3.5% to 6.3% over 3 years (+2.8 pts).

🟢 ROCE has risen from 9.9% to 11.5% over 3 years (+1.6 pts).

🟢 Total Debt has shrunk at 17.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹37 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹307 Cr

Total Liabilities

₹142 Cr

Total Debt

₹99 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹37 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

87.1%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

23 Sept 2026

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

PASHUPATI Stock Price and Chart — NSE:PASHUPATI

TradingView, 29 Sept

Pashupati Cotspin Share Price near 52-week low: analysis

Univest, 09 Oct

how Fair Value analysis spotted Pashupati Cotspin’s 56% decline By Investing.com

Investing.com India, 03 Oct

Pashupati Cotspin Ltd

Equitypandit, 08 Apr

Does Pashupati Cotspin (NSE:PASHUPATI) Deserve A Spot On Your Watchlist?

Simply Wall Street, 30 Sept

Pashupati Cotspin board to mull bonus share issue on Oct 03

Business Standard, 29 Sept

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟢Financial HealthStrong15.4/20

🟢GrowthStrong14.9/20

🔴ProfitabilityWeak4.5/15

🔴ValuationDemanding5.3/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓Revenue growth stays above 17% a year22.5% CAGR
✓EBITDA margin holds above 3%5.0%
✗Debt / EBITDA stays below 2x2.9x
✗Interest cover stays above 3x2.5x
✓Free cash flow remains positive₹37 Cr