Riba Textiles Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹60.70−₹1.52 (−2.44%)

DalalBaazaar Score

54 / 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Riba Textiles Limited manufactures and sells terry towels, bathmats, and other textile products in North America, Europe, Asia, Oceania, and India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees367

Annual revenue₹231 Cr

How does it make money?

Turns over ₹231 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 367 employees supports ₹62.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹62.9 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 11.4% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +6% while net margin moved +4% 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+6%

Margin effect+4%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 7.7% is weak

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

81/ 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

7.5x

3Y Median

9.4x

40 monthly readings · mean 9.2x · range 5.7x–12.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 3y median of 9.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 89% below the peer median of 69.2x.

vs. its own history

Cheap

9.4x median over 40 months · -21%

vs. sector peers

Cheap

69.2x median of 4 peers · -89%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.1x

PEG

2.36

What's Good / What's Bad

🟢 What's Going Well1

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 watch

🟡Inventory building faster than salesFinancial
Inventory up 58% against revenue up 6% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 21% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 89% 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 3.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 2.0% 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 7%✓ 9.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.5x
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✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 2.0% CAGR
Latest reported year was -21.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.

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 · 4 neutral · 3 weak

Market Cap

₹59 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.5x

Cheap

Cheap against the generic band

P/B Ratio

0.55x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.14

Profitable

Profitable on a per-share basis

ROE

7.7%

Weak

Weak capital efficiency

ROCE

11.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.72x

Moderate

Moderate leverage

Revenue Growth (YoY)

-21.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-40.0%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

10.2x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

7.9%

Average

Average margins

Net Margin

3.2%

Average

Average bottom-line conversion

Current Ratio

1.19

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

64.3 / 68.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹218 Cr	₹221 Cr	₹265 Cr	₹231 Cr	+2.0%
EBITDA	₹18 Cr	₹19 Cr	₹22 Cr	₹21 Cr	+7.0%
EBITDA Margin	8.1%	8.6%	8.2%	9.3%	—
PAT (Net Profit)	₹7 Cr	₹8 Cr	₹8 Cr	₹8 Cr	+3.2%
EPS	₹7.67	₹8.2	₹8.81	₹8.42	+3.2%
ROE	9.1%	8.9%	8.7%	7.7%	—
ROCE	12.0%	12.4%	12.5%	11.4%	—
Total Debt	₹61 Cr	₹68 Cr	₹61 Cr	₹76 Cr	+7.7%
Free Cash Flow	₹7 Cr	₹10 Cr	₹0 Cr	₹1 Cr	-54.0%

🟡 Revenue has been broadly flat over 3 years (2.0% a year).

🟢 EBITDA has grown at 7.0% a year over 3 years.

🟢 EBITDA Margin has risen from 8.1% to 9.3% over 3 years (+1.2 pts).

🟢 PAT (Net Profit) has grown at 3.2% a year over 3 years.

🟢 EPS has grown at 3.2% a year over 3 years.

🔴 ROE has fallen from 9.1% to 7.7% over 3 years (-1.4 pts).

🟡 ROCE has held roughly flat at 11.4% over 3 years.

🔴 Total Debt has grown at 7.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 54.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹218 Cr

Total Liabilities

₹112 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹28 Cr

Capex

-₹27 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.9%

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

Compare RIBA TEXTILES with

Equitymaster, 14 Oct

Compare with RIBA TEXTILES

Equitymaster, 17 Oct

Riba Textiles Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Riba Textiles passes all resolutions at 38th AGM; Amit Garg reappointed

scanx.trade, 24 Sept

Kerala Ayurveda: 34ਵੀਂ AGM ਵਿੱਚ ਵੱਡਾ ਫੈਸਲਾ, ਕਰਜ਼ਾ ਘਟਾਉਣ ਲਈ ਕੰਪਨੀ ਜਾਰੀ ਕਰੇਗੀ Preferential Shares

Whalesbook, 28 Sept

JM Financial consolidated net profit declines 21.08% in the March 2026 quarter

Business Standard, 30 MayResults

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

Watch Items

Revenue growth is negative (-21.9%) 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 · Valuation

MiddlingBusiness Quality · Risk

WeakGrowth · 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.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Revenue growth stays above 4% a year · see Key things to watch ↑