STL Global Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹9.70+₹0.08 (+0.83%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 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 STL Global Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

STL Global Limited engages in the textile business in India. It is involved in knitting, dyeing and processing, yarn dyeing, woven processing, thread sewing, and readymade garments manufacturing activities.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees271

Annual revenue₹102 Cr

How does it make money?

Turns over ₹102 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 271 employees supports ₹37.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin0.8%

Net margin-0.2%

Revenue / employee₹37.5 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.

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 -0.3% 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.

ROCE-0.3%

ROE-0.8%

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 -198% 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-198%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

44/ 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

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

1.01x

EV/EBITDA

46.2x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 32% over 3 years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 2.3% to 0.8% over 3 years.
Return on capital is falling
ROCE has declined from 1.8% to -0.3% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 32% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 2.3% to 0.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 15.0x 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 0.3% 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.
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 -1%✓ 0.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 15.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Revenue growth stays above 4% a year✗ 0.3% CAGR
Latest reported year was -19.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -0.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

₹26 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

1.01x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.51

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.8%

Weak

Weak capital efficiency

ROCE

-0.3%

Weak

Low return on total capital employed

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

-19.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

67.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹9.7

Operating Margin

-5.6%

Weak

Thin margins leave little room for error

Net Margin

-1.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.76

Defensive

Steadier than the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.2 / 9.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

59.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹101 Cr	₹87 Cr	₹110 Cr	₹102 Cr	+0.3%
EBITDA	₹2 Cr	-₹1 Cr	₹1 Cr	₹1 Cr	-29.1%
EBITDA Margin	2.3%	-1.4%	0.5%	0.8%	—
PAT (Net Profit)	₹0 Cr	-₹3 Cr	-₹1 Cr	-₹0 Cr	—
EPS	₹0.08	₹-0.96	₹-0.24	₹-0.08	—
ROE	0.7%	-9.6%	-2.5%	-0.8%	—
ROCE	1.8%	-5.6%	-1.3%	-0.3%	—
Total Debt	₹19 Cr	₹19 Cr	₹15 Cr	₹13 Cr	-12.2%
Free Cash Flow	₹9 Cr	-₹5 Cr	₹5 Cr	₹2 Cr	-40.7%

🟡 Revenue has been broadly flat over 3 years (0.3% a year).

🔴 EBITDA has shrunk at 29.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 2.3% to 0.8% over 3 years (-1.5 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.08 to ₹-0.08.

🔴 ROE has fallen from 0.7% to -0.8% over 3 years (-1.6 pts).

🔴 ROCE has fallen from 1.8% to -0.3% over 3 years (-2.1 pts).

🟢 Total Debt has shrunk at 12.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 40.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹55 Cr

Total Liabilities

₹29 Cr

Total Debt

₹13 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.0%

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 mixed4 general

STL Global (SGL) Share/Stock Price Live, NSE

TechGraph, 09 Oct

STL Global NSE:SGL Q2 FY27 Regulation 74(5) Compliance Filing

Kalkine India, 13 OctResults

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

STL Global Share Price Forecast to 2030

Univest, 31 Jul

STL Global sets Sep 30 AGM; narrows FY26 loss to ₹21.55 lakh

scanx.trade, 05 Sept

STL Global SGL Trading Window Closure October 2026

Kalkine India, 25 Sept

STL Global Share Price Target 2026: Rs 12.3 Analyst Forecast

Univest, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Revenue growth is negative (-19.1%) 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

🔴Business QualityWeak6.2/20

🟢Financial HealthStrong17.5/20

🔴GrowthWeak7.6/20

🔴ProfitabilityWeak1.3/15

🟡ValuationFair7.1/15

🔴RiskHigh4.4/10

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. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -1%0.8%
✗Debt / EBITDA falls below 3x15.0x
✗Revenue growth stays above 4% a year0.3% CAGR
✓Free cash flow remains positive₹2 Cr
✗ROCE stays above 8%-0.3%