SPL Industries Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹27.58−₹0.29 (−1.04%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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, 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

SPL Industries Limited designs, manufactures, and sells knitted fabrics and garments in India and internationally. The company operates in two segments, Manufacturing Cotton Knitted Garments and Made Ups and Processing Charges, and Trading of Garments.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees257

Annual revenue₹66 Cr

How does it make money?

Turns over ₹66 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 257 employees supports ₹25.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹25.7 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 3.0% 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 -75% while net margin moved +21% 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-75%

Margin effect+21%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 37.4% a year
✗ Profit has declined at 33.3% a year

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

74/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

9.7x

3Y Median

9.2x

40 monthly readings · mean 10.1x · range 6.4x–15.0x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 9.2x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 86% below the peer median of 69.2x.

vs. its own history

Fair

9.2x median over 40 months · +5%

vs. sector peers

Cheap

69.2x median of 4 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 100% over 3 years.
Very low debt
Debt/Equity of 0.00x 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 12.7% to 3.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.5% to 3.0% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹43 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 70% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 100% 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 86% 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?

Returns on shareholder capital are falling
ROE has dropped from 12.7% to 3.3%. 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 11%✓ 13.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹43 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 3.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 9.2x✓ 9.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

6 good · 2 neutral · 3 weak

Market Cap

₹81 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.7x

Cheap

Cheap against the generic band

P/B Ratio

0.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.85

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

3.0%

Weak

Low return on total capital employed

Debt/Equity

0.00x

Low

Conservative leverage

Revenue Growth (YoY)

16.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

135.5%

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

-₹43 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-7.2%

Weak

Thin margins leave little room for error

Net Margin

11.5%

Good

Strong bottom-line conversion

Current Ratio

5.74

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.78

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

29.3 / 30.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹269 Cr	₹199 Cr	₹132 Cr	₹66 Cr	-37.4%
EBITDA	₹36 Cr	₹18 Cr	₹13 Cr	₹9 Cr	-37.5%
EBITDA Margin	13.4%	9.0%	10.0%	13.3%	—
PAT (Net Profit)	₹24 Cr	₹12 Cr	₹10 Cr	₹7 Cr	-33.3%
EPS	₹8.22	₹4.05	₹3.38	₹2.43	-33.4%
ROE	12.7%	5.9%	4.7%	3.3%	—
ROCE	17.5%	9.2%	6.9%	3.0%	—
Total Debt	₹11 Cr	₹0 Cr	—	₹0 Cr	-92.8%
Free Cash Flow	₹0 Cr	₹4 Cr	₹13 Cr	-₹43 Cr	—

🔴 Revenue has shrunk at 37.4% a year over 3 years.

🔴 EBITDA has shrunk at 37.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 13.3% over 3 years.

🔴 PAT (Net Profit) has shrunk at 33.3% a year over 3 years.

🔴 EPS has shrunk at 33.4% a year over 3 years.

🔴 ROE has fallen from 12.7% to 3.3% over 3 years (-9.4 pts).

🔴 ROCE has fallen from 17.5% to 3.0% over 3 years (-14.5 pts).

🟢 Total Debt has shrunk at 92.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹43 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹235 Cr

Total Liabilities

₹19 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹58 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.9%

Corporate Actions

Ex-Dividend Date

14 Sept 2007

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

SPL Industries Share Price Target 2027 to 2030: Analyst Outlook

Univest, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

SPL Industries Limited's (NSE:SPLIL) Share Price Not Quite Adding Up

Simply Wall Street, 14 Jan

Compare with SPL INDUSTRIES.

Equitymaster, 08 Oct

SPL Industries applies for LOI to set up industrial colony in Haryana

scanx.trade, 08 Oct

SPL Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

SPL Industries NSE:SPLIL SEBI Reg 74(5) Q2 FY27 Certificate

Kalkine India, 10 OctResults

🟡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

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

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability

WeakGrowth · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low.

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