Sri Lakshmi Saraswathi Textiles (Arni) Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹33.41₹0.00 (0.00%)

DalalBaazaar Score

27 / 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, 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 Sri Lakshmi Saraswathi Textiles (Arni) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sri Lakshmi Saraswathi Textiles (Arni) Limited engages in the manufacture and sale of yarns in India. The company offers cotton, polyester cotton, and open-end yarns, as well as surgical face masks. Its products are used to manufacture woven and knitted fabrics.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees915

Annual revenue₹87 Cr

How does it make money?

Turns over ₹87 Cr a year. Of every ₹100 of sales, about ₹-18 reaches shareholders as profit, with ₹-9 left at the operating level before interest, tax and depreciation. Each of its 915 employees supports ₹9.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹9.5 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 -5.8% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -42% while net margin moved +36% 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-42%

Margin effect+36%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

19/ 100

Weak

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

Valuation

36/ 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

—

Red Flags

6 items require attention · 3 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 334% over 3 years, from ₹16 Cr to ₹70 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -2.7x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹16 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -3.1x to -2.7x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹17 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.15 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

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
3 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 -11%✓ -8.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹17 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -2.7x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -5.8%
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

3 good · 2 neutral · 6 weak

Market Cap

₹11 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

0.09x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-52.49

Loss-making

Negative earnings per share — the business is losing money

ROE

-12.2%

Weak

Weak capital efficiency

ROCE

-5.8%

Weak

Low return on total capital employed

Debt/Equity

0.52x

Low

Conservative leverage

Revenue Growth (YoY)

-5.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

25.5%

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

-₹17 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-24.4%

Weak

Thin margins leave little room for error

Net Margin

-20.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.15

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.33

Defensive

Steadier than the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

34.2 / 32.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹151 Cr	₹127 Cr	₹99 Cr	₹87 Cr	-16.7%
EBITDA	-₹15 Cr	-₹14 Cr	-₹14 Cr	-₹8 Cr	—
EBITDA Margin	-10.1%	-11.1%	-14.6%	-8.8%	—
PAT (Net Profit)	-₹20 Cr	-₹20 Cr	-₹21 Cr	-₹16 Cr	—
EPS	₹-59.92	₹-59.96	₹-63.42	₹-47.24	—
Total Debt	₹16 Cr	₹19 Cr	₹46 Cr	₹70 Cr	+63.1%
Free Cash Flow	-₹2 Cr	₹3 Cr	-₹23 Cr	-₹17 Cr	—

🔴 Revenue has shrunk at 16.7% a year over 3 years.

🟢 EBITDA Margin has risen from -10.1% to -8.8% over 3 years (+1.3 pts).

🔴 Total Debt has grown at 63.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹329 Cr

Total Liabilities

₹200 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹13 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.2%

Corporate Actions

Ex-Dividend Date

23 Jul 2014

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

3 mixed1 general

Sri Lakshmi Textiles Q1FY27 Results: Net loss widens to ₹551.84 lakh

scanx.trade, 21 AugResults

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

Q1 results: Tata Motors, IRCTC, HAL, Abbott India, and 545 more on Aug 12

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.

Sri Lakshmi Saraswathi Textiles (Arni) Limited (521161) Company Information

Simply Wall Street, 14 Nov

Q1 Results Today: Astral, Bata India, Muthoot Microfin, BEML among 260+ companies to announce earnings on August 11

Livemint, 11 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

Revenue growth is negative (-5.8%) 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

MiddlingValuation · Risk

WeakBusiness Quality · Financial Health · Growth · Profitability

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. 3 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 ↑