Phoenix International Limited

Consumer Cyclical — Footwear & Accessories · NSE

₹35.55−₹3.95 (−10.00%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by 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. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Phoenix International Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Phoenix International Limited, together with its subsidiaries, engages in leasing building properties in India. The company operates in two segments, Shoe Uppers Manufacturing and Rental Services of Immovable Properties. It manufactures and supplies shoe upper products.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Annual revenue₹28 Cr

How does it make money?

Turns over ₹28 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹52 left at the operating level before interest, tax and depreciation.

EBITDA margin52.0%

Net margin9.1%

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 2.7% 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.

ROCE2.7%

ROE0.7%

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 -15% while net margin moved +36% 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-15%

Margin effect+36%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.2% a year
✗ Profit CAGR of only 5.1%

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

68/ 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

22.4x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 68% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -68%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

22.4x

P/B

0.14x

EV/EBITDA

7.3x

PEG

4.41

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 41.2% to 52.0% over 3 years.
Debt is being paid down
Total debt is down 40% over 3 years.
Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.
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

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 41.2% to 52.0%. 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 40% 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 68% 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 ₹19 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 3.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 50%✓ 52.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.6x
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✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹19 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 2.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹60 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.14x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.59

Profitable

Profitable on a per-share basis

ROE

0.7%

Weak

Weak capital efficiency

ROCE

2.7%

Weak

Low return on total capital employed

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

22.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

36.4%

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

₹19 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹35.55

Operating Margin

33.9%

Good

Healthy core-business profitability

Net Margin

9.5%

Average

Average bottom-line conversion

Current Ratio

1.17

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

47%

Mid-range

Technical Snapshot

RSI (14)

62.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹32 Cr	₹27 Cr	₹24 Cr	₹28 Cr	-5.2%
EBITDA	₹13 Cr	₹14 Cr	₹14 Cr	₹14 Cr	+2.5%
EBITDA Margin	41.2%	51.1%	58.1%	52.0%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹2 Cr	₹3 Cr	+5.1%
EPS	₹1.27	₹1.42	₹0.94	₹1.49	+5.4%
ROE	0.6%	0.7%	0.5%	0.7%	—
ROCE	2.3%	2.5%	2.5%	2.7%	—
Total Debt	₹86 Cr	₹76 Cr	₹65 Cr	₹51 Cr	-15.8%
Free Cash Flow	₹18 Cr	₹22 Cr	₹19 Cr	₹19 Cr	+1.7%

🔴 Revenue has shrunk at 5.2% a year over 3 years.

🟢 EBITDA has grown at 2.5% a year over 3 years.

🟢 EBITDA Margin has risen from 41.2% to 52.0% over 3 years (+10.8 pts).

🟢 PAT (Net Profit) has grown at 5.1% a year over 3 years.

🟢 EPS has grown at 5.4% a year over 3 years.

🟡 ROE has held roughly flat at 0.7% over 3 years.

🟡 ROCE has held roughly flat at 2.7% over 3 years.

🟢 Total Debt has shrunk at 15.8% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (1.7% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹439 Cr

Total Liabilities

₹84 Cr

Total Debt

₹51 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹19 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.5%

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 positive5 general

Phoenix International Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Phoenix International FY26 Results: Net profit up 53% to ₹2.61 crore

scanx.trade, 30 SeptResults

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

Phoenix International Ltd

Equitypandit, 18 Mar

Volume Gainers October 13, 2026 at 12:00 PM IST

HDFC Sky, 13 Oct

Top 13 Low PE Ratio Stocks in India 2026

Samco, 08 Oct

Phoenix International schedules 39th AGM for September 30, 2026

scanx.trade, 07 Sept

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong13.7/20

🔴GrowthWeak4.8/20

🔴ProfitabilityWeak6.2/15

🟢ValuationAttractive11.3/15

🟡RiskModerate5.2/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 50%52.0%
✗Debt / EBITDA falls below 3x3.6x
✗Interest cover stays above 3x2.0x
✓Free cash flow remains positive₹19 Cr
✗ROCE stays above 8%2.7%