SBC Exports Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹63.45−₹0.76 (−1.18%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

SBC Exports Limited manufactures and sells hosiery fabrics and garments in India and internationally. The company operates through three segments: Garments Manufacturing; Information Technology Services; and Travel and Tour Operations.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees453

Annual revenue₹403 Cr

How does it make money?

Turns over ₹403 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 453 employees supports ₹89.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹89.0 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 36.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 41.5% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +106% 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+106%

Margin effect+78%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 74.6x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 76.7x
✗ P/B of 30.00x is a steep premium to book

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

47/ 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

74.6x

3Y Median

76.7x

40 monthly readings · mean 81.0x · range 42.0x–150.0x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 76.7x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Fair

76.7x median over 40 months · -3%

vs. sector peers

Fair

69.2x median of 4 peers · +8%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

70.4x

PEG

1.38

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 6.4% to 11.4% over 3 years.
Return on equity is rising
ROE has improved from 20.0% to 31.5%.
Return on capital is rising
ROCE has improved from 28.0% to 36.4%.
High return on capital employed
ROCE of 36.4% 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 Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 746% over 3 years, from ₹27 Cr to ₹227 Cr.
🔴High leverageFinancial
Debt/Equity of 3.06x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 257% against revenue up 106% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 143% against revenue up 106% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 36.4% 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.
Margin expansion has further to run
EBITDA margin has risen from 6.4% to 11.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 5.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 143% against revenue up 106%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
5 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 20% a year✓ 27.2% CAGR
Latest reported year was 85.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 5.0x
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✗ -₹86 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 33%✓ 36.4%
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

₹3,021 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

74.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

30.00x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.85

Profitable

Profitable on a per-share basis

ROE

41.5%

Strong

Strong capital efficiency

ROCE

36.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.06x

High

High leverage

Revenue Growth (YoY)

85.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

0.0%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹95 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

6.0%

Average

Average asset productivity

Operating Margin

8.7%

Average

Average margins

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

1.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

93%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

57.7 / 48.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

85.7

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹196 Cr	₹209 Cr	₹300 Cr	₹403 Cr	+27.2%
EBITDA	₹13 Cr	₹21 Cr	₹26 Cr	₹46 Cr	+54.2%
EBITDA Margin	6.4%	9.8%	8.5%	11.4%	—
PAT (Net Profit)	₹7 Cr	₹9 Cr	₹13 Cr	₹25 Cr	+54.1%
EPS	₹0.22	₹0.3	₹0.28	₹0.53	+34.1%
ROE	20.0%	21.0%	24.0%	31.5%	—
ROCE	28.0%	27.1%	30.4%	36.4%	—
Total Debt	₹27 Cr	₹53 Cr	₹136 Cr	₹227 Cr	+103.7%
Free Cash Flow	-₹15 Cr	-₹22 Cr	-₹76 Cr	-₹86 Cr	—

🟢 Revenue has grown at 27.2% a year over 3 years.

🟢 EBITDA has grown at 54.2% a year over 3 years.

🟢 EBITDA Margin has risen from 6.4% to 11.4% over 3 years (+5.0 pts).

🟢 PAT (Net Profit) has grown at 54.1% a year over 3 years.

🟢 EPS has grown at 34.1% a year over 3 years.

🟢 ROE has risen from 20.0% to 31.5% over 3 years (+11.5 pts).

🟢 ROCE has risen from 28.0% to 36.4% over 3 years (+8.3 pts).

🔴 Total Debt has grown at 103.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹437 Cr

Total Liabilities

₹357 Cr

Cash & Equivalents

₹18 Cr

Operating Cash Flow

-₹72 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

56.4%

Corporate Actions

Ex-Dividend Date

23 Sept 2024

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

2 positive4 general

Compare with

Equitymaster, 16 Oct

SBC Exports Q2 FY27 Profit Rises 37% to Rs 11.38 Crore

Whalesbook, 15 OctResults

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

If EPS Growth Is Important To You, SBC Exports (NSE:SBC) Presents An Opportunity

Simply Wall Street, 30 Sept

SBC Exports Targets 40%-50% Growth in FY27 Driven by Dubai and Middle East Opportunities

Sahi, 20 Aug

SBC Exports Q1 net profit jumps 270% to ₹94.3 lakh; EBITDA margin expands

scanx.trade, 12 AugResults

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

SBC Exports vs Nifty 50: 1Y Return +174.42% vs -10.93%

Univest, 12 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
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

StrongGrowth · Profitability

MiddlingBusiness Quality

WeakFinancial Health · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 5 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 ↑