Seasons Textiles Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹18.34+₹0.39 (+2.17%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Seasons Textiles Limited manufactures, trades in, and exports furnishing fabrics in India. The company offers indoor and outdoor fabrics, and recycled polyester. It also exports its products to the United States, Europe, the Middle East, and the United Kingdom.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees115

Annual revenue₹23 Cr

How does it make money?

Turns over ₹23 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 115 employees supports ₹19.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹19.9 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 3.3% 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 -2% while net margin moved -135% 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-2%

Margin effect-135%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.8% a year
✗ Latest-year revenue growth of -25.2% is below the longer-term trend — momentum is fading
✗ Profit fell 21.7% in the latest year

Quality vs. Valuation

Company Quality

43/ 100

Weak

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.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

107.9x

Sector Median

69.2x

median of 4 sector peers

⚠️Against its sector it trades 56% above the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

69.2x median of 4 peers · +56%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

10.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 17% over 3 years.
Cash generation is improving
Free cash flow is up 381% over 3 years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 17% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 56% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 12%✓ 13.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.5x
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✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 3.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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 · 2 neutral · 5 weak

Market Cap

₹14 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

107.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.39x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.17

Profitable

Profitable on a per-share basis

ROE

0.5%

Weak

Weak capital efficiency

ROCE

3.3%

Weak

Low return on total capital employed

Debt/Equity

0.57x

Low

Conservative leverage

Revenue Growth (YoY)

-25.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-21.7%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

14.5%

Average

Average margins

Net Margin

0.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.11

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

17.8 / 18.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹23 Cr	₹26 Cr	₹27 Cr	₹23 Cr	-0.8%
EBITDA	₹3 Cr	₹4 Cr	₹3 Cr	₹3 Cr	-3.4%
EBITDA Margin	14.7%	14.2%	11.1%	13.5%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	-₹0 Cr	₹0 Cr	—
EPS	₹-0.65	₹-0.28	₹-0.45	₹0.22	—
ROE	-1.4%	-0.6%	-1.0%	0.5%	—
ROCE	3.2%	3.8%	3.4%	3.3%	—
Total Debt	₹24 Cr	₹24 Cr	₹22 Cr	₹20 Cr	-6.1%
Free Cash Flow	₹1 Cr	-₹0 Cr	₹3 Cr	₹4 Cr	+68.8%

🟡 Revenue has been broadly flat over 3 years (-0.8% a year).

🔴 EBITDA has shrunk at 3.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 14.7% to 13.5% over 3 years (-1.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-0.65 to ₹0.22.

🟢 ROE has risen from -1.4% to 0.5% over 3 years (+1.9 pts).

🟡 ROCE has held roughly flat at 3.3% over 3 years.

🟢 Total Debt has shrunk at 6.1% a year over 3 years.

🟢 Free Cash Flow has grown at 68.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹59 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.7%

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 mixed5 general

Seasons Textiles Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Seasons Textiles Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

BLS Infotech reports standalone net loss of Rs 0.07 crore in the June 2026 quarter

Business Standard, 13 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

India must make garments for all seasons: Giriraj Singh

The Economic Times, 12 Mar

Seasons Textiles Limited (SEASONST.BO) stock historical prices and data

Yahoo Finance Singapore, 17 Sept

Caprolactam Market Softens in China as Inventory Pressure Persists; US Prices Hold Steady

ChemAnalyst, 25 Nov

Watch Items

Revenue growth is negative (-25.2%) 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.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation

WeakGrowth · 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.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑