Premco Global Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹392.00−₹3.00 (−0.76%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Premco Global Limited, together with its subsidiaries, manufactures and sells elastic and non-elastic woven and knitted narrow fabrics, tapes, and webbings in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees169

Annual revenue₹93 Cr

How does it make money?

Turns over ₹93 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 169 employees supports ₹55.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹55.0 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.2% 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 +1% while net margin moved -37% 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+1%

Margin effect-37%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.4% — barely ahead of inflation
✗ Profit has declined at 14.1% a year
✗ Latest-year revenue growth of -33.7% is below the longer-term trend — momentum is fading
✗ Profit fell 99.5% in the latest year

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

67/ 100

Fair

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

54.2x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 22% 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 · -22%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

11.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 129% over 3 years.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 11.1% to 8.2% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.9 points, from 17.3% to 11.4%.
🟡Debt is increasingFinancial
Total debt is up 50% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 37% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 22% 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 ₹16 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 17.3% to 11.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 0.4% 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.
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 9%✓ 11.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 0.4% CAGR
Latest reported year was -33.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹16 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

5 good · 2 neutral · 4 weak

Market Cap

₹130 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

54.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.23

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

8.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

-33.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-99.5%

Falling

Profits are shrinking

Dividend Yield

2.04%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹16 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-5.7%

Weak

Thin margins leave little room for error

Net Margin

2.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.93

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.16

Defensive

Steadier than the market

52W Range Position

55%

Mid-range

Technical Snapshot

RSI (14)

43.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹92 Cr	₹98 Cr	₹109 Cr	₹93 Cr	+0.4%
EBITDA	₹16 Cr	₹20 Cr	₹18 Cr	₹11 Cr	-12.6%
EBITDA Margin	17.3%	20.5%	16.2%	11.4%	—
PAT (Net Profit)	₹9 Cr	₹10 Cr	₹10 Cr	₹6 Cr	-14.1%
EPS	₹28.54	₹30.97	₹28.77	₹18.12	-14.1%
ROE	8.7%	9.1%	8.9%	6.0%	—
ROCE	11.1%	12.8%	11.5%	8.2%	—
Total Debt	₹12 Cr	₹6 Cr	₹10 Cr	₹18 Cr	+14.4%
Free Cash Flow	₹7 Cr	₹4 Cr	₹2 Cr	₹16 Cr	+31.8%

🟡 Revenue has been broadly flat over 3 years (0.4% a year).

🔴 EBITDA has shrunk at 12.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 17.3% to 11.4% over 3 years (-5.9 pts).

🔴 PAT (Net Profit) has shrunk at 14.1% a year over 3 years.

🔴 EPS has shrunk at 14.1% a year over 3 years.

🔴 ROE has fallen from 8.7% to 6.0% over 3 years (-2.7 pts).

🔴 ROCE has fallen from 11.1% to 8.2% over 3 years (-3.0 pts).

🔴 Total Debt has grown at 14.4% a year over 3 years.

🟢 Free Cash Flow has grown at 31.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹130 Cr

Total Liabilities

₹29 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

₹18 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.5%

Corporate Actions

Dividend Rate

₹8

Ex-Dividend Date

25 Aug 2026

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

4 positive2 general

Premco Global Ltd Share Price

Business Today, 16 Oct

Textile stocks’ dividend race: Premco Global, Monte Carlo, Siyaram, Ambika Cotton - Which stock spins highest yield?

Livemint, 15 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Textile Stocks Dividend Yield: Premco, Ambika, Monte Carlo

Univest, 16 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Special dividend stocks: TCS, JSW Dulux, Premco Global, Honda India Power in 6 firms offering extra payout

IndiaIPO, 11 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Premco Global Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 10 Sept

Premco Global - Vedanta, Coal India among top dividend-yield stocks in 2025, offering returns of up to 25%

The Economic Times, 01 JanCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Revenue growth is negative (-33.7%) 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.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation · Risk

WeakBusiness Quality · Growth · Profitability

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

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