Pasupati Spinning & Weaving Mills Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹36.50−₹1.19 (−3.16%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Pasupati Spinning & Weaving Mills Limited operates as a textile company in India. It operates through Textile and Textile Articles; and Logistics & Warehousing Services segments. The company offers fabrics, bedsheets, acrylic fibers, and cotton and polyester blended yarns.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees231

Annual revenue₹99 Cr

How does it make money?

Turns over ₹99 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 231 employees supports ₹42.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin10.0%

Net margin2.2%

Revenue / employee₹42.9 lakh

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?Some evidence

ROCE of 16.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE16.7%

ROE6.6%

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 -28% while net margin moved +180% 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-28%

Margin effect+180%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.6% is weak

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

84/ 100

Cheap

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

9.1x

3Y Median

33.1x

40 monthly readings · mean 35.6x · range 14.7x–58.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 73% below its 3y median of 33.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 87% below the peer median of 69.2x.

vs. its own history

Cheap

33.1x median over 40 months · -73%

vs. sector peers

Cheap

69.2x median of 4 peers · -87%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.1x

P/B

1.01x

EV/EBITDA

8.6x

PEG

0.34

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 7.4% to 10.0% over 3 years.
Return on capital is rising
ROCE has improved from 12.9% to 16.7%.
Valuation below its historical average
At 9.1x the stock trades 73% below its own median of 33.1x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 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 1.52x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.8x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.4% to 10.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 73% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 87% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

The debt load needs earnings to hold up
Debt is 5.2x 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 8%✓ 10.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.2x
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✗ 1.8x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 14%✓ 16.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

7 good · 2 neutral · 2 weak

Market Cap

₹34 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.1x

Cheap

Cheap against the generic band

P/B Ratio

1.01x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.03

Profitable

Profitable on a per-share basis

ROE

6.6%

Weak

Weak capital efficiency

ROCE

16.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.52x

High

High leverage

Revenue Growth (YoY)

25.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

152.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹36.5

Operating Margin

11.2%

Average

Average margins

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

1.07

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

71%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

36.3 / 35.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹137 Cr	₹108 Cr	₹100 Cr	₹99 Cr	-10.3%
EBITDA	₹10 Cr	₹9 Cr	₹8 Cr	₹10 Cr	-0.7%
EBITDA Margin	7.4%	7.9%	8.4%	10.0%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+26.4%
EPS	₹1.18	₹0.63	₹0.94	₹2.37	+26.2%
ROE	3.7%	1.9%	2.8%	6.6%	—
ROCE	12.9%	14.1%	12.4%	16.7%	—
Total Debt	₹51 Cr	₹52 Cr	₹54 Cr	₹51 Cr	-0.0%
Free Cash Flow	₹4 Cr	₹0 Cr	-₹5 Cr	₹3 Cr	-14.7%

🔴 Revenue has shrunk at 10.3% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-0.7% a year).

🟢 EBITDA Margin has risen from 7.4% to 10.0% over 3 years (+2.6 pts).

🟢 PAT (Net Profit) has grown at 26.4% a year over 3 years.

🟢 EPS has grown at 26.2% a year over 3 years.

🟢 ROE has risen from 3.7% to 6.6% over 3 years (+2.9 pts).

🟢 ROCE has risen from 12.9% to 16.7% over 3 years (+3.7 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.0% a year).

🔴 Free Cash Flow has shrunk at 14.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹107 Cr

Total Liabilities

₹74 Cr

Total Debt

₹51 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

91.1%

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 positive1 mixed4 general

Pasupati Spinning & Weaving Mills Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Pasupati Spinning & Weaving Mills Ltd Valuation Shifts to Very Attractive Amid Strong Market Performance

MarketsMojo, 05 Oct

Pasupati Spinning shareholders approve FMCG expansion at 46th AGM

scanx.trade, 30 SeptCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Pashupati Cotspin Share Price near 52-week low: analysis

Univest, 09 Oct

Pasupati Spinning alters MoA to add food, beverage business objects

scanx.trade, 12 Aug

CSL Finance standalone net profit rises 2.32% in the March 2026 quarter

Business Standard, 26 MayResults

🟢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

🟡Business QualityAdequate11.5/20

🟡Financial HealthAdequate9/20

🟡GrowthModest10.5/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive13.2/15

🔴RiskHigh3.9/10

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

This thesis breaks if

✓EBITDA margin holds above 8%10.0%
✗Debt / EBITDA falls below 3x5.2x
✗Interest cover stays above 3x1.8x
✓Free cash flow remains positive₹3 Cr
✓ROCE stays above 14%16.7%