Shiva Mills Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹57.85+₹2.18 (+3.92%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shiva Mills Limited engages in the manufacturing and marketing of cotton yarns in India. It operates spinning unit and owns 22 windmills with a total installed capacity of 10.65 MW. The company also exports its products.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees587

Annual revenue₹139 Cr

How does it make money?

Turns over ₹139 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 587 employees supports ₹23.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹23.6 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 -0.1% 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 -12% while net margin moved -99% 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-12%

Margin effect-99%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.3% a year

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

87/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

14.9x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 79% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -79%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -0.6% to 4.6% over 3 years.
Return on equity is rising
ROE has improved from -7.2% to -0.1%.
Return on capital is rising
ROCE has improved from -6.9% to -0.1%.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 3 high

🔴Thin interest coverageFinancial
Operating profit covers interest only -0.4x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Inventory building faster than salesFinancial
Inventory up 88% against revenue up -12% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -0.6% to 4.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 79% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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
3 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 3%✓ 4.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -0.4x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹13 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -0.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ 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

5 good · 4 neutral · 2 weak

Market Cap

₹50 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.9x

Cheap

Cheap against the generic band

P/B Ratio

0.54x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.89

Profitable

Profitable on a per-share basis

ROE

-0.1%

Weak

Weak capital efficiency

ROCE

-0.1%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

1.4%

Modest

Modest growth

Profit Growth (YoY)

97.7%

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

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.6%

Average

Average margins

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.35

Defensive

Steadier than the market

52W Range Position

55%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

59.2 / 60.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹158 Cr	₹157 Cr	₹169 Cr	₹139 Cr	-4.3%
EBITDA	-₹1 Cr	₹3 Cr	₹3 Cr	₹6 Cr	—
EBITDA Margin	-0.6%	2.1%	2.0%	4.6%	—
PAT (Net Profit)	-₹7 Cr	-₹3 Cr	-₹4 Cr	-₹0 Cr	—
EPS	₹-8.28	₹-3.76	₹-4.41	₹-0.1	—
ROE	-7.2%	-3.4%	-4.1%	-0.1%	—
ROCE	-6.9%	-3.5%	-3.3%	-0.1%	—
Total Debt	—	₹10 Cr	₹10 Cr	—	—
Free Cash Flow	₹19 Cr	-₹20 Cr	₹1 Cr	₹13 Cr	-10.8%

🔴 Revenue has shrunk at 4.3% a year over 3 years.

🟢 EBITDA has turned positive, from -₹1 Cr to ₹6 Cr.

🟢 EBITDA Margin has risen from -0.6% to 4.6% over 3 years (+5.2 pts).

🟢 ROE has risen from -7.2% to -0.1% over 3 years (+7.1 pts).

🟢 ROCE has risen from -6.9% to -0.1% over 3 years (+6.7 pts).

🔴 Free Cash Flow has shrunk at 10.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹107 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹16 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.4%

Corporate Actions

Ex-Dividend Date

17 Aug 2022

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

Shiva Mills (SHIVAMILLS) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Shiva Mills Ltd is Rated Sell by MarketsMOJO

MarketsMojo, 15 Oct

Top 15 Low-Price Stocks In India To Buy In October 2026

Samco, 17 Oct

Shiva Mills Lim Standalone June 2026 Net Sales at Rs 38.10 crore, up 1.43% Y-o-Y

Moneycontrol.com, 10 Aug

Shiva Mills NSE:SHIVAMILLS Trading Window Closure Q2 FY27

Kalkine India, 25 SeptResults

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

Shiva Mills shareholders approve FY26 financials, appoint new auditors

scanx.trade, 27 Aug

Watch Items

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.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑