Siyaram Silk Mills Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹533.85−₹3.30 (−0.61%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

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

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Siyaram Silk Mills Limited manufactures, brands, and markets fabrics, readymade garments, and indigo dyed yarn in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees2,467

Annual revenue₹2,569 Cr

How does it make money?

Turns over ₹2,569 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 2,467 employees supports ₹1.04 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.04 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 21.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 15.8% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +15% while net margin moved -20% 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-20%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.9% — barely ahead of inflation
✗ Profit has declined at 2.7% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

77/ 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

10.2x

3Y Median

12.2x

40 monthly readings · mean 13.0x · range 8.2x–21.6x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 17% below its 3y median of 12.2x. 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 85% below the peer median of 69.2x.

vs. its own history

Fair

12.2x median over 40 months · -17%

vs. sector peers

Cheap

69.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 21.4% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 22.1% to 15.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.6% to 21.4% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 117% over 3 years, from ₹163 Cr to ₹352 Cr.
🔴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.
🟡Margins are compressingFinancial
EBITDA margin is down 3.1 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 51% against revenue up 15% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 85% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹18 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 17.9% to 14.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 51% against revenue up 15%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.9% 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.
Returns on shareholder capital are falling
ROE has dropped from 22.1% to 15.8%. 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.
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 13%✓ 14.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.9% CAGR
Latest reported year was 14.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹18 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 21.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

9 good · 2 neutral · 0 weak

Market Cap

₹2,422 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.2x

Cheap

Cheap against the generic band

P/B Ratio

1.66x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹52.3

Profitable

Profitable on a per-share basis

ROE

15.8%

Strong

Strong capital efficiency

ROCE

21.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

14.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

138.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.25%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹18 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

4.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

9.0%

Average

Average bottom-line conversion

Current Ratio

2.42

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

537.8 / 565.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,228 Cr	₹2,089 Cr	₹2,218 Cr	₹2,569 Cr	+4.9%
EBITDA	₹400 Cr	₹316 Cr	₹339 Cr	₹382 Cr	-1.5%
EBITDA Margin	17.9%	15.1%	15.3%	14.9%	—
PAT (Net Profit)	₹251 Cr	₹185 Cr	₹197 Cr	₹231 Cr	-2.7%
EPS	₹53.55	₹39.99	₹43.45	₹50.89	-1.7%
ROE	22.1%	16.2%	15.4%	15.8%	—
ROCE	28.6%	22.1%	20.6%	21.4%	—
Total Debt	₹163 Cr	₹175 Cr	₹262 Cr	₹352 Cr	+29.4%
Free Cash Flow	₹178 Cr	₹70 Cr	₹112 Cr	₹18 Cr	-53.4%

🟢 Revenue has grown at 4.9% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-1.5% a year).

🔴 EBITDA Margin has fallen from 17.9% to 14.9% over 3 years (-3.1 pts).

🔴 PAT (Net Profit) has shrunk at 2.7% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (-1.7% a year).

🔴 ROE has fallen from 22.1% to 15.8% over 3 years (-6.3 pts).

🔴 ROCE has fallen from 28.6% to 21.4% over 3 years (-7.3 pts).

🔴 Total Debt has grown at 29.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 53.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,191 Cr

Total Liabilities

₹731 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹93 Cr

Capex

-₹75 Cr

Shareholding (proxy)

Institutional Holding

2.7%

Insider Holding

69.3%

Corporate Actions

Dividend Rate

₹12

Ex-Dividend Date

24 Jul 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

4 positive2 general

Read This Before Considering Siyaram Silk Mills Limited (NSE:SIYSIL) For Its Upcoming ₹5.00 Dividend

Simply Wall Street, 20 JulCapital return

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

Siyaram Silk Mills (SIYSIL) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Textile stocks’ dividend race: Premco Global, Monte Carlo, Siyaram, Ambika Cotton - Which stock spins highest yield?

Livemint, 15 OctCapital return

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

Textile Stocks Dividend Yield: Premco, Ambika, Monte Carlo

Univest, 16 OctCapital return

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

Siyaram Silk Mills Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

Siyaram Silk Mills consolidated net profit rises 137.28% in the June 2026 quarter

Business Standard, 31 JulResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability · Risk

WeakGrowth

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.

All 5 tripwires holding · see Key things to watch ↑