Patspin India Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹5.75−₹0.33 (−5.43%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Patspin India Limited manufactures and sells cotton yarns in India. It also exports its products. The company was incorporated in 1991 and is based in Kochi, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹-455 reaches shareholders as profit, with ₹-92 left at the operating level before interest, tax and depreciation.

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 -271.9% 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 -93% while net margin moved +782% 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-93%

Margin effect+782%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 100

Weak

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

Valuation

30/ 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

Multiples unreliable — equity base is negative

EV/EBITDA

—

PEG

—

Red Flags

7 items require attention · 4 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.7x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹11 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 69.1 points, from -22.9% to -92.0%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -0.3x to -0.7x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.04 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from -22.9% to -92.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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
4 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 -94%✓ -92.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -0.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

2 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ 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

0 good · 4 neutral · 7 weak

Market Cap

₹18 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

Not available

No data

Source didn't return this field

EPS (TTM)

₹-3.74

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-271.9%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-1.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-16.4%

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 burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-7.2%

Weak

Thin margins leave little room for error

Net Margin

-25.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.04

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.1 / 6.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹35 Cr	₹9 Cr	₹8 Cr	₹3 Cr	-58.6%
EBITDA	-₹8 Cr	₹2 Cr	₹1 Cr	-₹2 Cr	—
EBITDA Margin	-22.9%	22.5%	7.3%	-92.0%	—
PAT (Net Profit)	-₹18 Cr	-₹7 Cr	-₹10 Cr	-₹11 Cr	—
EPS	₹-5.94	₹-2.15	₹-3.17	₹-3.69	—
ROCE	-18.1%	2.7%	-9.3%	-271.9%	—
Total Debt	₹77 Cr	₹74 Cr	₹82 Cr	₹82 Cr	+2.1%
Free Cash Flow	₹6 Cr	₹7 Cr	₹1 Cr	-₹0 Cr	—

🔴 Revenue has shrunk at 58.6% a year over 3 years.

🔴 EBITDA Margin has fallen from -22.9% to -92.0% over 3 years (-69.1 pts).

🔴 ROCE has fallen from -18.1% to -271.9% over 3 years (-253.7 pts).

🔴 Total Debt has grown at 2.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹79 Cr

Total Liabilities

₹124 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.2%

Corporate Actions

Ex-Dividend Date

12 Jul 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 positive2 mixed3 general

Patspin India Chairman Emeritus B K Patodia dies, ceases as promoter

scanx.trade, 28 Sept

Patspin India: કંપની પર મોટું આર્થિક સંકટ, **₹34.34 કરોડ**ના લોન ડિફોલ્ટથી રોકાણકારોની ચિંતા વધી

Whalesbook, 07 Oct

Patspin India Q1 FY27 Results: Revenue Rs 11 Cr, Net Loss Rs 2 Cr and Key Highlights

Univest, 11 AugResults

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

Patspin India Ltd Defaults on INR 343.4 Million of Principal and Interest on Loans from Banks and Financial Institutions

www.marketscreener.com, 07 Oct

Patspin India closes trading window from Oct 1 for Q2FY27 results

scanx.trade, 23 SeptResults

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

Prime Industries consolidated net profit rises 171.43% in the June 2026 quarter

Business Standard, 11 AugResults

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

Watch Items

Revenue growth is negative (-1.6%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Patspin India Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 3 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑