Baazar Style Retail Limited

Consumer Cyclical — Apparel Retail · NSE

₹397.00+₹12.95 (+3.37%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: Reasonable but unspectacular business quality, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Baazar Style Retail Limited engages in the retail of various apparel and non-apparel consumer products in India.

IndustryApparel Retail

SectorConsumer Cyclical

Employees4,132

Annual revenue₹1,840 Cr

How does it make money?

Turns over ₹1,840 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 4,132 employees supports ₹44.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin14.9%

Net margin2.5%

Revenue / employee₹44.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are TRENT LTD, TITAN COMPANY LIMITED, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TRENT LTDP/E 87.2x · ROE 25.9%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 13.5% 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.

ROCE13.5%

ROE10.4%

Peer median ROE25.9%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 32.0% and earnings to grow about 67.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+32.0%

Est. earnings growth+67.4%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +134% while net margin moved +293% 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+134%

Margin effect+293%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 2.21x is high — earnings must service borrowings before shareholders see anything
✗ Current ratio of 0.97 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 1.8x — little room if profits dip
✗ Debt has grown 26.6% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

64/ 100

Fair

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

63.1x

2Y Median

117.6x

27 monthly readings · mean 119.3x · range 61.3x–192.4x

Sector Median

69.9x

median of 3 sector peers

🟢Current valuation is approximately 46% below its 2y median of 117.6x. 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 is priced broadly in line with the peer median of 69.9x.

vs. its own history

Cheap

117.6x median over 27 months · -46%

vs. sector peers

Fair

69.9x median of 3 peers · -10%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

63.1x

P/B

6.57x

EV/EBITDA

14.6x

PEG

0.58

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 2.6% to 10.4%.
Return on capital is rising
ROCE has improved from 8.3% to 13.5%.
Valuation below its historical average
At 63.1x the stock trades 46% below its own median of 117.6x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 103% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Short-term liquidity is tight
Current ratio of 0.97 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 103% over 3 years, from ₹490 Cr to ₹995 Cr.
🔴High leverageFinancial
Debt/Equity of 2.21x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.8x — little room if earnings dip.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹23 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.97 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 46% 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.
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?

The debt load needs earnings to hold up
Debt is 3.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
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

1Revenue growth stays above 25% a year✓ 32.7% CAGR
Latest reported year was 28.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹23 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 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

2 good · 5 neutral · 4 weak

Market Cap

₹3,022 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

63.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.57x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹6.29

Profitable

Profitable on a per-share basis

ROE

10.4%

Moderate

Moderate capital efficiency

ROCE

13.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.21x

High

High leverage

Revenue Growth (YoY)

28.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3.6%

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

-₹23 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹397

P/E (Forward)

26.6x

Improving

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

Operating Margin

4.1%

Weak

Thin margins leave little room for error

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.97

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

1.47

High swing

Swings more than the market in both directions

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

381.7 / 383.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹787 Cr	₹972 Cr	₹1,343 Cr	₹1,840 Cr	+32.7%
EBITDA	₹106 Cr	₹146 Cr	₹196 Cr	₹274 Cr	+37.1%
EBITDA Margin	13.5%	15.1%	14.6%	14.9%	—
PAT (Net Profit)	₹5 Cr	₹22 Cr	₹15 Cr	₹47 Cr	+109.4%
EPS	₹0.68	₹2.94	₹2.02	₹6.28	+109.4%
ROE	2.6%	10.2%	3.6%	10.4%	—
ROCE	8.3%	11.4%	7.3%	13.5%	—
Total Debt	₹490 Cr	₹657 Cr	₹996 Cr	₹995 Cr	+26.6%
Free Cash Flow	-₹11 Cr	₹27 Cr	-₹55 Cr	-₹23 Cr	—

🟢 Revenue has grown at 32.7% a year over 3 years.

🟢 EBITDA has grown at 37.1% a year over 3 years.

🟢 EBITDA Margin has risen from 13.5% to 14.9% over 3 years (+1.4 pts).

🟢 PAT (Net Profit) has grown at 109.4% a year over 3 years.

🟢 EPS has grown at 109.4% a year over 3 years.

🟢 ROE has risen from 2.6% to 10.4% over 3 years (+7.8 pts).

🟢 ROCE has risen from 8.3% to 13.5% over 3 years (+5.2 pts).

🔴 Total Debt has grown at 26.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,883 Cr

Total Liabilities

₹1,432 Cr

Total Debt

₹995 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹126 Cr

Capex

-₹148 Cr

Shareholding (proxy)

Institutional Holding

3.9%

Insider Holding

63.9%

Analyst Consensus

Target Price (Mean)

₹485

+22.2% vs CMP

Target Range

₹485 – ₹485

Peer Comparison

Company	P/E	ROE
TRENT LTD	87.2x	25.9%
TITAN COMPANY LIMITED	68.5x	36.7%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

Baazar Style Retail locked at 5% upper circuit for 3rd day; here's why

Business Standard, 18 Aug

Baazar Style Retail Opens Store in Harnaut, Total Count 273

scanx.trade, 14 Oct

Baazar Style Retail shares hit 5% upper circuit on reports of Aditya Halwasia buying company shares worth ₹163 crore

Livemint, 17 Aug

Baazar Style Retail Insiders May Regret Not Buying More, Market Cap Hits ₹25b

Simply Wall Street, 18 Apr

Baazar Style Retail shares rise 8% amid early lead for BJP in West Bengal: Here's why

Moneycontrol.com, 04 MayPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Baazar Style Retail shares zoom nearly 22% in four sessions; what's fuelling the rally?

Business Today, 19 Aug

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate11.7/20

🔴Financial HealthStretched4.5/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate8.5/15

🔴ValuationDemanding6.7/15

🔴RiskHigh2.7/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 25% a year32.7% CAGR
✓EBITDA margin holds above 13%14.9%
✗Debt / EBITDA falls below 3x3.6x
✗Free cash flow remains positive-₹23 Cr
✗Interest cover stays above 3x1.8x