Shiva Texyarn Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹158.56+₹0.02 (+0.01%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Shiva Texyarn Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shiva Texyarn Limited engages in the manufacturing of yarn and technical textile products in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees1,430

Annual revenue₹340 Cr

How does it make money?

Turns over ₹340 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 1,430 employees supports ₹23.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin11.3%

Net margin3.0%

Revenue / employee₹23.8 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 12.3% 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.

ROCE12.3%

ROE7.0%

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 -17% while net margin moved -285% 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-17%

Margin effect-285%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 6.1% a year
✗ Profit fell 24.3% in the latest year

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

75/ 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

21.4x

1.3Y Median

19.3x

16 monthly readings · mean 18.8x · range 13.6x–23.0x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 11% above its 1.3y median of 19.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 69% below the peer median of 69.2x.

vs. its own history

Fair

19.3x median over 16 months · +11%

vs. sector peers

Cheap

69.2x median of 4 peers · -69%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.4x

P/B

1.41x

EV/EBITDA

7.4x

PEG

—

Dividend Yield

0.38%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 2.2% to 11.3% over 3 years.
Debt is being paid down
Total debt is down 30% over 3 years.
Return on equity is rising
ROE has improved from -5.0% to 7.0%.
Return on capital is rising
ROCE has improved from 4.0% to 12.3%.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 48% against revenue growth of -17% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 48% against revenue up -17% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.2% to 11.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 30% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 48% against revenue up -17%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 9%✓ 11.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹46 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 12.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 4 neutral · 3 weak

Market Cap

₹218 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.41x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.42

Profitable

Profitable on a per-share basis

ROE

7.0%

Weak

Weak capital efficiency

ROCE

12.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.50x

Low

Conservative leverage

Revenue Growth (YoY)

-3.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-24.3%

Falling

Profits are shrinking

Dividend Yield

0.38%

Modest

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

Free Cash Flow

₹46 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹158.56

Operating Margin

5.4%

Average

Average margins

Net Margin

2.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.66

Defensive

Steadier than the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

166.5 / 169.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹410 Cr	₹334 Cr	₹322 Cr	₹340 Cr	-6.1%
EBITDA	₹9 Cr	₹13 Cr	₹36 Cr	₹38 Cr	+61.3%
EBITDA Margin	2.2%	3.9%	11.2%	11.3%	—
PAT (Net Profit)	-₹7 Cr	-₹11 Cr	₹12 Cr	₹10 Cr	—
EPS	₹-5.12	₹-8.31	₹9.31	₹7.88	—
ROE	-5.0%	-8.7%	8.9%	7.0%	—
ROCE	4.0%	-1.8%	10.8%	12.3%	—
Total Debt	₹104 Cr	₹105 Cr	₹106 Cr	₹73 Cr	-11.1%
Free Cash Flow	₹40 Cr	-₹5 Cr	₹9 Cr	₹46 Cr	+4.8%

🔴 Revenue has shrunk at 6.1% a year over 3 years.

🟢 EBITDA has grown at 61.3% a year over 3 years.

🟢 EBITDA Margin has risen from 2.2% to 11.3% over 3 years (+9.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹7 Cr to ₹10 Cr.

🟢 EPS has turned positive, from ₹-5.12 to ₹7.88.

🟢 ROE has risen from -5.0% to 7.0% over 3 years (+12.0 pts).

🟢 ROCE has risen from 4.0% to 12.3% over 3 years (+8.2 pts).

🟢 Total Debt has shrunk at 11.1% a year over 3 years.

🟢 Free Cash Flow has grown at 4.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹271 Cr

Total Liabilities

₹126 Cr

Total Debt

₹73 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹50 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.5%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

20 Aug 2026

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 mixed1 negative4 general

Is Shiva Texyarn the Best Stock in Its Sector? A Look at the Numbers

Univest, 07 Oct

Shiva Texyarn Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Shiva Texyarn Q1FY27 net profit falls 24% to ₹1.72 crore

scanx.trade, 06 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Momentum Stocks: Coffee Day, Shiva Texyarn, GP Petroleums rally up to 11% on sheer momentum

Moneycontrol.com, 27 May

Why Is Shiva Texyarn Share Price Falling Key Reasons 2026

Univest, 29 JunPrice 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.

S K Sundararaman acquires 1.16% stake in Shiva Texyarn

scanx.trade, 02 Sept

Watch Items

Revenue growth is negative (-3.1%) 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 QualityAdequate10.2/20

🟡Financial HealthAdequate12.7/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate7.1/15

🟢ValuationAttractive10.6/15

🔴RiskHigh4.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 9%11.3%
✗Interest cover stays above 3x2.4x
✓Free cash flow remains positive₹46 Cr
✓Debt / EBITDA stays below 2x1.9x
✓ROCE stays above 9%12.3%