Standard Industries Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹14.95−₹0.43 (−2.80%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, 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, though profits are falling even as sales grow. Debt is 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 Standard Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Standard Industries Limited, together with its subsidiary, engages in trading of textiles and chemical products in India. It operates through Property Division, Trading, Manufacturing, and Others segments.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees12

Annual revenue₹34 Cr

How does it make money?

Turns over ₹34 Cr a year. Of every ₹100 of sales, about ₹-57 reaches shareholders as profit, with ₹-43 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹2.84 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.84 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?Little sign of one

Returns on capital of -15.1% 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 +62% while net margin moved -155% 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+62%

Margin effect-155%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.10 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

57/ 100

Average

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.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

1.6x

3Y Median

5.8x

40 monthly readings · mean 6.1x · range 3.5x–10.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 73% below its 3y median of 5.8x. 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 98% below the peer median of 69.2x.

vs. its own history

Cheap

5.8x median over 40 months · -73%

vs. sector peers

Cheap

69.2x median of 4 peers · -98%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 86% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 14.7% to -16.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.9% to -15.1% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 6 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 3.14x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -22.0x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹20 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 115.7 points, from 72.3% to -43.5%.
🔴Inventory building faster than salesFinancial
Inventory up 2806% against revenue up 62% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -5.7x to -22.0x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 86% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 73% 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 98% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 72.3% to -43.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.14x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 14.7% to -16.9%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.5% CAGR
Latest reported year was 1734.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -45%✓ -43.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -22.0x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -15.1%
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

5 good · 1 neutral · 5 weak

Market Cap

₹96 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.6x

Cheap

Cheap against the generic band

P/B Ratio

0.84x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹9.63

Profitable

Profitable on a per-share basis

ROE

-16.9%

Weak

Weak capital efficiency

ROCE

-15.1%

Weak

Low return on total capital employed

Debt/Equity

3.14x

High

High leverage

Revenue Growth (YoY)

1734.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-44.4%

Falling

Profits are shrinking

Dividend Yield

3.34%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

44.4%

Good

Healthy core-business profitability

Net Margin

28.6%

Good

Strong bottom-line conversion

Current Ratio

1.96

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

15.9 / 17.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

19.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹21 Cr	₹27 Cr	₹28 Cr	₹34 Cr	+17.5%
EBITDA	₹15 Cr	-₹11 Cr	-₹11 Cr	-₹15 Cr	—
EBITDA Margin	72.3%	-40.3%	-40.6%	-43.5%	—
PAT (Net Profit)	₹22 Cr	-₹0 Cr	-₹14 Cr	-₹20 Cr	—
EPS	₹3.37	₹-0.02	₹-2.1	₹-3.03	—
ROE	14.7%	-0.1%	-11.3%	-16.9%	—
ROCE	14.9%	-1.6%	-8.3%	-15.1%	—
Total Debt	₹26 Cr	₹22 Cr	₹13 Cr	₹4 Cr	-48.5%
Free Cash Flow	-₹114 Cr	-₹7 Cr	-₹1 Cr	-₹14 Cr	—

🟢 Revenue has grown at 17.5% a year over 3 years.

🔴 EBITDA has turned negative, from ₹15 Cr to -₹15 Cr.

🔴 EBITDA Margin has fallen from 72.3% to -43.5% over 3 years (-115.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹22 Cr to -₹20 Cr.

🔴 EPS has turned negative, from ₹3.37 to ₹-3.03.

🔴 ROE has fallen from 14.7% to -16.9% over 3 years (-31.7 pts).

🔴 ROCE has fallen from 14.9% to -15.1% over 3 years (-30.0 pts).

🟢 Total Debt has shrunk at 48.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹192 Cr

Total Liabilities

₹77 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹43 Cr

Capex

-₹57 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.6%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

11 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

2 positive4 general

Standard Industries (BSE:530017) - Stock Analysis

Simply Wall Street, 09 Oct

Standard Industries Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

Standard Industries Q1FY27 profit surges to ₹80 crore on property sales

scanx.trade, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Standard Industries Q1 FY27 Revenue Surges to ₹189.67 Cr on Property Asset Sale

Whalesbook, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Reliance Industries down 2%, at 17-month low; what's making Street nervous?

Business Standard, 24 Sept

Business Watch: Investor seeks Ashland sale; WuXi sues the Pentagon

Chemical & Engineering News, 16 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingFinancial Health

WeakBusiness Quality · Profitability · 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. 6 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑