Shubham Polyspin Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹30.98₹0.00 (0.00%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shubham Polyspin Limited manufactures and sells polypropylene (PP) multifilament yarns and fabrics in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees64

Annual revenue₹51 Cr

How does it make money?

Turns over ₹51 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 64 employees supports ₹79.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹79.4 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 10.2% 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 +15% while net margin moved +7% 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+15%

Margin effect+7%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.0% is weak

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

60/ 100

Fair

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

34.8x

3Y Median

36.0x

40 monthly readings · mean 51.6x · range 25.4x–117.9x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 36.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 50% below the peer median of 69.2x.

vs. its own history

Fair

36.0x median over 40 months · -3%

vs. sector peers

Cheap

69.2x median of 4 peers · -50%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.2x

PEG

4.87

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 19% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 110% against revenue up 15% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 19% 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 50% 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?

Growth barely outpaces inflation
Revenue compounding at 4.8% 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.
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

1EBITDA margin holds above 5%✓ 7.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✓ 4.8% CAGR
Latest reported year was -18.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

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

3 good · 5 neutral · 3 weak

Market Cap

₹38 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.8x

Fair

Fairly valued against the generic band

P/B Ratio

2.18x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.89

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

10.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.49x

Low

Conservative leverage

Revenue Growth (YoY)

-18.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

18.8%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

3.9%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.17

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

32.0 / 35.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹44 Cr	₹49 Cr	₹52 Cr	₹51 Cr	+4.8%
EBITDA	₹3 Cr	₹3 Cr	₹3 Cr	₹4 Cr	+2.1%
EBITDA Margin	7.9%	6.5%	5.5%	7.3%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+7.1%
EPS	₹0.69	₹0.71	₹0.58	₹0.86	+7.6%
ROE	5.8%	5.6%	4.4%	6.0%	—
ROCE	11.2%	10.3%	8.0%	10.2%	—
Total Debt	₹10 Cr	₹9 Cr	₹8 Cr	₹8 Cr	-6.8%
Free Cash Flow	₹3 Cr	₹4 Cr	₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 4.8% a year over 3 years.

🟢 EBITDA has grown at 2.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.3% over 3 years.

🟢 PAT (Net Profit) has grown at 7.1% a year over 3 years.

🟢 EPS has grown at 7.6% a year over 3 years.

🟡 ROE has held roughly flat at 6.0% over 3 years.

🔴 ROCE has fallen from 11.2% to 10.2% over 3 years (-1.0 pts).

🟢 Total Debt has shrunk at 6.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹29 Cr

Total Liabilities

₹12 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.4%

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 positive1 negative4 general

Compare with

Equitymaster, 07 Oct

August Bonus Issue: 3 Stocks Approve And Recommend Bonus Share

Goodreturns, 11 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Shubham Polyspin Limited Share Price

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Multibagger stock attracts FPI investment from Mauritius. Should you buy?

Livemint, 15 Jul

Deepak Builders & Engineers India standalone net profit declines 80.79% in the June 2026 quarter

Business Standard, 15 AugResults

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

Spright Agro Ltd. Stock News: Significant 9.3% Price Rise

Univest, 27 Jul

Watch Items

Revenue growth is negative (-18.7%) on the latest reported period — check if this is one-off or a trend.
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

MiddlingBusiness Quality · Financial Health · Valuation · Risk

WeakGrowth · Profitability

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.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑