Piotex Industries Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹27.35₹0.00 (0.00%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:55 pm

Understanding the Business

Company site ↗

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

What does this company do?

Piotex Industries Limited engages in the contract manufacturing and trading of cotton yarn, fabric, and cotton bales. It also offers garments for corporates, industrials, hotels, hospitals, and schools.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹90 Cr

How does it make money?

Turns over ₹90 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹1 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 4.2% 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.

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 +5% while net margin moved -78% 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+5%

Margin effect-78%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 4.2% is below 10% — capital is not working hard
✗ ROCE has fallen by 55.1 points — returns are eroding
✗ EBITDA margin of 1.3% is thin — little cushion if costs rise
✗ Net margin of 0.7% is slim
• Revenue has compounded at 1.6% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

59/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

21.2x

3Y Median

8.1x

31 monthly readings · mean 8.4x · range 4.0x–16.6x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 160% above its 3y median of 8.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 69% below the peer median of 69.2x.

vs. its own history

Expensive

8.1x median over 31 months · +160%

vs. sector peers

Cheap

69.2x median of 4 peers · -69%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 98% over 3 years.
Cash generation is improving
Free cash flow is up 158% over 3 years.
Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 65.6% to 2.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 59.3% to 4.2% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Inventory building faster than salesFinancial
Inventory up 850% against revenue up 5% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 13.2x to 4.9x.
🟡Profit is decliningFinancial
Net profit is down 77% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.3 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 98% 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 69% 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 ₹7 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?

Margins are being competed away
EBITDA margin has fallen from 5.6% to 1.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 160% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 1.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 65.6% to 2.5%. 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.
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 -1%✓ 1.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.6% CAGR
Latest reported year was -65.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 4.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹14 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.2x

Fair

Fairly valued against the generic band

P/B Ratio

0.53x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.29

Profitable

Profitable on a per-share basis

ROE

2.5%

Weak

Weak capital efficiency

ROCE

4.2%

Weak

Low return on total capital employed

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

-65.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-67.2%

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

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

1.0%

Weak

Assets generate little profit

Operating Margin

1.3%

Weak

Thin margins leave little room for error

Net Margin

0.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.83

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.09

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

27.7 / 29.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹86 Cr	₹118 Cr	₹134 Cr	₹90 Cr	+1.6%
EBITDA	₹5 Cr	₹4 Cr	₹5 Cr	₹1 Cr	-38.0%
EBITDA Margin	5.6%	3.6%	3.6%	1.3%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹3 Cr	₹1 Cr	-39.0%
EPS	₹5.66	₹5.89	₹6.85	—	—
ROE	65.6%	32.0%	13.2%	2.5%	—
ROCE	59.3%	33.2%	18.8%	4.2%	—
Total Debt	₹4 Cr	₹4 Cr	₹2 Cr	₹0 Cr	-73.8%
Free Cash Flow	₹3 Cr	-₹2 Cr	-₹7 Cr	₹7 Cr	+37.2%

🟡 Revenue has been broadly flat over 3 years (1.6% a year).

🔴 EBITDA has shrunk at 38.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 5.6% to 1.3% over 3 years (-4.3 pts).

🔴 PAT (Net Profit) has shrunk at 39.0% a year over 3 years.

🔴 ROE has fallen from 65.6% to 2.5% over 3 years (-63.1 pts).

🔴 ROCE has fallen from 59.3% to 4.2% over 3 years (-55.1 pts).

🟢 Total Debt has shrunk at 73.8% a year over 3 years.

🟢 Free Cash Flow has grown at 37.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹30 Cr

Total Liabilities

₹4 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.6%

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

6 general

PIOTEX INDUSTRIES LIMITED Share Price

Upstox, 05 May

Piotex Industries publishes AGM notice; meeting set for Sept 23

scanx.trade, 26 Aug

Piotex Industries Limited (BSE: 544178) Company Profile | Textiles Sector India

Kalkine India, 16 Sept

Piotex Industries Limited IPO GMP Today, Price Range and Company Details

Alice Blue, 09 May

Piotex Industries IPO Date, Review, Price, Allotment Details

IPO Watch, 07 May

AUDROC Stock Price and Chart — BSE:AUDROC

TradingView, 08 Jun

Watch Items

Revenue growth is negative (-65.7%) 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.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

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

2 of 5 tripwires tripped — Revenue growth stays above 4% a year; ROCE stays above 8% · see Key things to watch ↑