Shine Fashions (India) Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹20.80+₹0.69 (+3.43%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

The 60-second version of Shine Fashions (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shine Fashions (India) Limited engages in processing, manufacturing, trading, importing, and exporting of various types of fabrics and textile raw materials in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees13

Annual revenue₹102 Cr

How does it make money?

Turns over ₹102 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 13 employees supports ₹7.85 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7.85 Cr

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?Some evidence

ROCE of 15.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +384% while net margin moved -31% 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+384%

Margin effect-31%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 10.0% is moderate
✗ ROE has fallen by 4.8 points over the period

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

82/ 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

18.1x

3Y Median

24.9x

40 monthly readings · mean 28.4x · range 6.4x–129.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 3y median of 24.9x. 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 74% below the peer median of 69.2x.

vs. its own history

Cheap

24.9x median over 40 months · -27%

vs. sector peers

Cheap

69.2x median of 4 peers · -74%

vs. generic bands

Fair

15x–35x

EV/EBITDA

5.5x

PEG

0.37

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 6.6% to 12.3% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 14.1% to 9.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.8% to 15.6% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 895% over 3 years, from ₹2 Cr to ₹20 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 2188% against revenue up 384% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 240.4x to 4.3x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹24 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 20% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.6% to 12.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 27% 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 74% 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?

Returns on shareholder capital are falling
ROE has dropped from 14.1% to 9.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.
Several serious flags at once
2 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 52% a year✓ 69.2% CAGR
Latest reported year was 22.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹24 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 15.6%
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

3 good · 6 neutral · 2 weak

Market Cap

₹56 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.77x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.15

Profitable

Profitable on a per-share basis

ROE

10.0%

Moderate

Moderate capital efficiency

ROCE

15.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.64x

Moderate

Moderate leverage

Revenue Growth (YoY)

22.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-58.0%

Falling

Profits are shrinking

Dividend Yield

0.10%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

8.8%

Good

Assets are working hard

Operating Margin

8.9%

Average

Average margins

Net Margin

2.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.60

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

21.1 / 23.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹21 Cr	₹54 Cr	₹82 Cr	₹102 Cr	+69.2%
EBITDA	₹1 Cr	₹5 Cr	₹9 Cr	₹13 Cr	+108.1%
EBITDA Margin	6.6%	9.8%	11.6%	12.3%	—
PAT (Net Profit)	₹1 Cr	₹4 Cr	₹7 Cr	₹3 Cr	+49.1%
EPS	₹0.4	₹1.75	₹2.99	—	—
ROE	14.1%	38.4%	29.9%	9.3%	—
ROCE	20.8%	50.4%	39.7%	15.6%	—
Total Debt	₹2 Cr	₹1 Cr	₹6 Cr	₹20 Cr	+115.1%
Free Cash Flow	-₹1 Cr	₹1 Cr	₹2 Cr	-₹24 Cr	—

🟢 Revenue has grown at 69.2% a year over 3 years.

🟢 EBITDA has grown at 108.1% a year over 3 years.

🟢 EBITDA Margin has risen from 6.6% to 12.3% over 3 years (+5.7 pts).

🟢 PAT (Net Profit) has grown at 49.1% a year over 3 years.

🔴 ROE has fallen from 14.1% to 9.3% over 3 years (-4.8 pts).

🔴 ROCE has fallen from 20.8% to 15.6% over 3 years (-5.2 pts).

🔴 Total Debt has grown at 115.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹114 Cr

Total Liabilities

₹83 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹24 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.9%

Corporate Actions

Dividend Rate

₹0.02

Ex-Dividend Date

04 Jul 2025

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

Compare with

Equitymaster, 16 Oct

Shine Fashions AGM approves FY26 financials, re-appoints Binal Mehta

scanx.trade, 01 Oct

Compare with

Equitymaster, 16 Oct

Shine Fashions sets Sep 30 AGM time, confirms new Mumbai venue

scanx.trade, 04 Sept

Shein shares fall in long-awaited stock market debut

BBC, 01 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Shine Fashions (India) (BSE:543244) - Stock Analysis

Simply Wall Street, 04 Nov

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health · Growth

WeakProfitability · Risk

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑