Shree Rajasthan Syntex Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹8.80+₹0.01 (+0.11%)

DalalBaazaar Score

26 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, with both sales and profits growing well. 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 Shree Rajasthan Syntex Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shree Rajasthan Syntex Limited engages in the production of textile products in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees55

Annual revenue₹14 Cr

How does it make money?

Turns over ₹14 Cr a year. Of every ₹100 of sales, about ₹-58 reaches shareholders as profit, with ₹-19 left at the operating level before interest, tax and depreciation. Each of its 55 employees supports ₹25.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹25.2 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 -47.6% 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.

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 -73% 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-73%

Margin effect-31%

DalalBaazaar Score

26/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

22/ 100

Weak

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

Valuation

29/ 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

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 98% over 3 years.

🔴 What Needs Attention0

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

Red Flags

7 items require attention · 4 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -7.7x — little room if earnings dip.
🔴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 -₹8 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 16.4 points, from -2.6% to -19.1%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹7 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 197% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.72 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 98% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from -2.6% to -19.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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
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 -21%✓ -19.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -7.7x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -47.6%
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

2 good · 4 neutral · 5 weak

Market Cap

₹36 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

4.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-2.13

Loss-making

Negative earnings per share — the business is losing money

ROE

-106.2%

Weak

Weak capital efficiency

ROCE

-47.6%

Weak

Low return on total capital employed

Debt/Equity

0.68x

Moderate

Moderate leverage

Revenue Growth (YoY)

10.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

43.8%

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

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-14.5%

Weak

Thin margins leave little room for error

Net Margin

-52.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.72

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

9.0 / 9.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹52 Cr	₹25 Cr	₹13 Cr	₹14 Cr	-35.5%
EBITDA	-₹1 Cr	₹3 Cr	₹1 Cr	-₹3 Cr	—
EBITDA Margin	-2.6%	13.7%	8.5%	-19.1%	—
PAT (Net Profit)	-₹43 Cr	₹112 Cr	-₹14 Cr	-₹8 Cr	—
EPS	₹-31.6	₹40.04	₹-5.13	₹-2.5	—
ROE	—	848.4%	—	-106.2%	—
ROCE	—	379.0%	-100.2%	-47.6%	—
Total Debt	₹92 Cr	₹13 Cr	₹13 Cr	₹2 Cr	-72.6%
Free Cash Flow	₹1 Cr	₹55 Cr	-₹9 Cr	-₹7 Cr	—

🔴 Revenue has shrunk at 35.5% a year over 3 years.

🔴 EBITDA Margin has fallen from -2.6% to -19.1% over 3 years (-16.4 pts).

🔴 ROE has fallen from 848.4% to -106.2% over 3 years (-954.6 pts).

🔴 ROCE has fallen from 379.0% to -47.6% over 3 years (-426.6 pts).

🟢 Total Debt has shrunk at 72.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹26 Cr

Total Liabilities

₹19 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹7 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.6%

Corporate Actions

Ex-Dividend Date

29 Aug 2011

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

Shree Rajasthan Syntex Ltd. Peer Comparison – Compare with Others

Value Research, 03 Sept

Shree Rajasthan Syntex shareholders approve all FY26 resolutions with 100% support

scanx.trade, 29 Sept

Shree Rajasthan Syntex reports standalone net loss of Rs 0.70 crore in the June 2026 quarter

Business Standard, 12 AugResults

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

Anubhav Ladia Increases Stake in Shree Rajasthan Syntex Through Inter-Se Transfer

scanx.trade, 17 Mar

Alok Industries: వాటా తగ్గించుకున్న JM Financial ARC.. ఓపెన్ మార్కెట్‌లో భారీ విక్రయాలు

Whalesbook, 04 Sept

Capricorn Systems Global Solutions reports standalone net profit of Rs 0.09 crore in the June 2026 quarter

Business Standard, 12 AugResults

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

Watch Items

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.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

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

3 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑