Shree Ram Twistex Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹36.70₹0.00 (0.00%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

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 modest growth. Cash generation is currently the main factor to watch.

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 Shree Ram Twistex Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shree Ram Twistex Limited manufactures, sells, and distributes cotton yarn.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹272 Cr

How does it make money?

Turns over ₹272 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation.

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 11.5% 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 +29% while net margin moved +436% 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+29%

Margin effect+436%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ 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

63/ 100

Average

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

Valuation

88/ 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

7.3x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 89% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -89%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.3x

PEG

0.08

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 8.3% to 12.2% over 3 years.
Debt is being paid down
Total debt is down 46% over 3 years.
Return on equity is rising
ROE has improved from 3.4% to 7.1%.
Return on capital is rising
ROCE has improved from 8.6% to 11.5%.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
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 415% against revenue up 29% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹38 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.3% to 12.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 46% 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 89% 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?

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.
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 10%✓ 12.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹38 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✓ 3.0x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 7% a year✓ 8.8% CAGR
Latest reported year was 46.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

6 / 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 · 4 neutral · 2 weak

Market Cap

₹147 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.3x

Cheap

Cheap against the generic band

P/B Ratio

0.56x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5

Profitable

Profitable on a per-share basis

ROE

7.1%

Weak

Weak capital efficiency

ROCE

11.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

46.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1.7%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹38 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

9.4%

Average

Average margins

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

2.33

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

37.2 / 38.1

Bearish alignment (short < long)

RSI (14)

40.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹211 Cr	₹229 Cr	₹250 Cr	₹272 Cr	+8.8%
EBITDA	₹17 Cr	₹20 Cr	₹22 Cr	₹33 Cr	+24.1%
EBITDA Margin	8.3%	8.8%	8.7%	12.2%	—
PAT (Net Profit)	₹2 Cr	₹7 Cr	₹8 Cr	₹14 Cr	+90.4%
EPS	₹0.51	₹1.64	₹2	₹4.67	+108.8%
ROE	3.4%	9.8%	10.8%	7.1%	—
ROCE	8.6%	12.5%	13.7%	11.5%	—
Total Debt	₹56 Cr	₹67 Cr	₹62 Cr	₹30 Cr	-18.5%
Free Cash Flow	₹5 Cr	-₹7 Cr	₹12 Cr	-₹38 Cr	—

🟢 Revenue has grown at 8.8% a year over 3 years.

🟢 EBITDA has grown at 24.1% a year over 3 years.

🟢 EBITDA Margin has risen from 8.3% to 12.2% over 3 years (+4.0 pts).

🟢 PAT (Net Profit) has grown at 90.4% a year over 3 years.

🟢 EPS has grown at 108.8% a year over 3 years.

🟢 ROE has risen from 3.4% to 7.1% over 3 years (+3.8 pts).

🟢 ROCE has risen from 8.6% to 11.5% over 3 years (+2.9 pts).

🟢 Total Debt has shrunk at 18.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹38 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹309 Cr

Total Liabilities

₹110 Cr

Cash & Equivalents

₹34 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹16 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.8%

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

6 general

SHREE RAM TWISTEX LIMITED Share Price - Live NSE: SRTL Stock Price & Chart

Upstox, 16 Oct

Shree Ram Twistex vs Nifty 50: 6M Return -20.86% vs -6.36%

Univest, 12 Oct

Compare with

Equitymaster, 16 Oct

Shree Ram Twistex shares settle at 5% UC post 35% discount listing on NSE

Moneycontrol.com, 02 Mar

Shree Ram Twistex shares list at 35% discount to IPO price on bourses

The Economic Times, 02 Mar

Shree Ram Twistex IPO listing date tomorrow: Here’s what GMP, subscription status hint ahead of debut

Livemint, 01 Mar

Watch Items

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

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑