Prabhhans Industries Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹75.00−₹3.50 (−4.46%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Prabhhans Industries Limited engages in the trading of paper products. It also sells school uniforms, corporate and institutional uniforms, and other garments products.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees16

Annual revenue₹101 Cr

How does it make money?

Turns over ₹101 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 16 employees supports ₹6.32 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.32 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.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 21.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 14.5% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +109% 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+109%

Margin effect-46%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 14.5% is moderate
✗ ROE has fallen by 9.5 points over the period

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

42/ 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

35.2x

3Y Median

28.6x

40 monthly readings · mean 27.8x · range 8.0x–55.7x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 23% above its 3y median of 28.6x. 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 49% below the peer median of 69.2x.

vs. its own history

Expensive

28.6x median over 40 months · +23%

vs. sector peers

Cheap

69.2x median of 4 peers · -49%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

20.4x

PEG

8.44

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 21.7% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 24.0% to 14.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 30.7% to 21.7% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 5032% over 3 years, from ₹0 Cr to ₹11 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.3x to 5.2x.
🟡Inventory building faster than salesFinancial
Inventory up 143% against revenue up 109% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 49% 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 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 23% 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.
Returns on shareholder capital are falling
ROE has dropped from 24.0% to 14.5%. 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.
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

1Revenue growth stays above 21% a year✓ 27.8% CAGR
Latest reported year was -52.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 2.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 19%✓ 21.7%
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

2 good · 6 neutral · 3 weak

Market Cap

₹47 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.2x

Fair

Fairly valued against the generic band

P/B Ratio

4.15x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.13

Profitable

Profitable on a per-share basis

ROE

14.5%

Moderate

Moderate capital efficiency

ROCE

21.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.01x

Moderate

Moderate leverage

Revenue Growth (YoY)

-52.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-73.1%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.8%

Weak

Thin margins leave little room for error

Net Margin

1.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.35

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

85%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

59.0 / 47.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

87.7

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹48 Cr	₹52 Cr	₹87 Cr	₹101 Cr	+27.8%
EBITDA	₹2 Cr	₹2 Cr	₹4 Cr	₹3 Cr	+13.9%
EBITDA Margin	4.0%	4.2%	4.4%	2.8%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+4.2%
EPS	₹2.32	₹2.18	₹3.64	₹2.62	+4.1%
ROE	24.0%	18.4%	23.5%	14.5%	—
ROCE	30.7%	27.5%	37.4%	21.7%	—
Total Debt	₹0 Cr	₹5 Cr	₹7 Cr	₹11 Cr	+271.6%
Free Cash Flow	₹2 Cr	-₹5 Cr	-₹1 Cr	-₹5 Cr	—

🟢 Revenue has grown at 27.8% a year over 3 years.

🟢 EBITDA has grown at 13.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 4.0% to 2.8% over 3 years (-1.2 pts).

🟢 PAT (Net Profit) has grown at 4.2% a year over 3 years.

🟢 EPS has grown at 4.1% a year over 3 years.

🔴 ROE has fallen from 24.0% to 14.5% over 3 years (-9.5 pts).

🔴 ROCE has fallen from 30.7% to 21.7% over 3 years (-9.0 pts).

🔴 Total Debt has grown at 271.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹38 Cr

Total Liabilities

₹27 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

46.1%

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 negative5 general

Prabhhans Industries receives draft letter of offer for open offer

scanx.trade, 15 Oct

Compare with

Equitymaster, 16 Oct

Prabhhans Industries standalone net profit declines 73.81% in the June 2026 quarter

Business Standard, 17 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Prabhhans Industries to consider equity fund raise on September 30

scanx.trade, 25 Sept

Prabhhans Industries Board Approves Proposed Rebranding to Exigo Cleantech

EquityBulls, 04 Oct

Lamosaic India (NSEI:LAMOSAIC) - Stock Analysis

Simply Wall Street, 12 Dec

Watch Items

Revenue growth is negative (-52.2%) 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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Growth

WeakProfitability · Valuation · Risk

Points for each in the Score ↑

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.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑