SEL Manufacturing Company Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹23.23₹0.00 (0.00%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

SEL Manufacturing Company Limited operates as a textile company primarily in India. Its products portfolio includes knitted garments, terry towels, knitted and processed fabrics, and various yarns.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹15 Cr

How does it make money?

Turns over ₹15 Cr a year. Of every ₹100 of sales, about ₹-1088 reaches shareholders as profit, with ₹-33 left at the operating level before interest, tax and depreciation.

EBITDA margin-33.1%

Net margin-1087.9%

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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of -129.6% 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.

ROCE-129.6%

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 -97% while net margin moved +3032% 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-97%

Margin effect+3032%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 100

Weak

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

Valuation

30/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

Not meaningful

P/B

—

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash generation is improving
Free cash flow is up 77% over 3 years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from -12.5% to -33.1% over 3 years.
Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.
Short-term liquidity is tight
Current ratio of 0.02 — near-term obligations exceed near-term assets.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -1.1x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹168 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 20.6 points, from -12.5% to -33.1%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -0.9x to -1.1x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.02 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from -12.5% to -33.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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
4 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

1EBITDA margin holds above -35%✓ -33.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -1.1x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹78 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

3 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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

1 good · 4 neutral · 6 weak

Market Cap

₹77 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-50.94

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-129.6%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-47.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-28.4%

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

₹78 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹23.23

Operating Margin

-751.3%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.02

Tight

Tight short-term liquidity

Beta (vs Nifty)

-1.69

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

25.3 / 26.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹535 Cr	₹352 Cr	₹33 Cr	₹15 Cr	-69.3%
EBITDA	-₹67 Cr	-₹53 Cr	-₹9 Cr	-₹5 Cr	—
EBITDA Margin	-12.5%	-15.2%	-28.9%	-33.1%	—
PAT (Net Profit)	-₹186 Cr	-₹193 Cr	-₹131 Cr	-₹168 Cr	—
EPS	₹-56.11	₹-58.23	₹-39.45	₹-50.66	—
ROCE	-13.6%	-17.5%	-13.7%	-129.6%	—
Total Debt	₹932 Cr	₹940 Cr	₹962 Cr	₹985 Cr	+1.9%
Free Cash Flow	₹44 Cr	₹37 Cr	₹67 Cr	₹78 Cr	+20.9%

🔴 Revenue has shrunk at 69.3% a year over 3 years.

🔴 EBITDA Margin has fallen from -12.5% to -33.1% over 3 years (-20.6 pts).

🔴 ROCE has fallen from -13.6% to -129.6% over 3 years (-116.0 pts).

🟡 Total Debt has been broadly flat over 3 years (1.9% a year).

🟢 Free Cash Flow has grown at 20.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹859 Cr

Total Liabilities

₹1,259 Cr

Total Debt

₹985 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹78 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.6%

Corporate Actions

Ex-Dividend Date

05 Feb 2008

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

SEL MANUFACTURING CO LTD Share Price - Live NSE: SELMC Stock Price & Chart

Upstox, 12 Oct

SEL Manufacturing Company Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

SEL Manufacturing Company Share Price Forecast to 2030

Univest, 27 Jul

SEL Manufacturing promoter declares no new encumbrance in FY26

scanx.trade, 19 Jun

SEL Manufacturing Company reports standalone net loss of Rs 42.00 crore in the June 2026 quarter

Business Standard, 06 AugResults

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

SEL Manufacturing Company Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Watch Items

Revenue growth is negative (-47.6%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

SEL Manufacturing Company Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -35%-33.1%
✗Interest cover stays above 3x-1.1x
✓Free cash flow remains positive₹78 Cr