Subhash Silk Mills Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹44.00−₹0.40 (−0.90%)

DalalBaazaar Score

41 / 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: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Subhash 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?

Subhash Silk Mills Limited engages in the manufacture and sale of fabrics and warehousing activities in India. The company offers garments, such as semiformal and formal wear for men and women, as well as co-ordinates. It also offers school uniforms.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees5

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹-2501 reaches shareholders as profit, with ₹-548 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹61,245 of revenue a year, the signature of a people-led business.

EBITDA margin-548.0%

Net margin-2500.5%

Revenue / employee₹61,245

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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of -6.0% 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.

ROCE-6.0%

ROE-8.0%

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 +465% while net margin moved -196% 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+465%

Margin effect-196%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 9.5 points over the period

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

29/ 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

P/E (Trailing)

Not meaningful

P/B

1.93x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 63% over 3 years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 17563.9% to -548.0% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 1.4% to -8.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 3.1% to -6.0% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.36 — near-term obligations exceed near-term assets.

Red Flags

7 items require attention · 4 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 5.37x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -24.1x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 18112.0 points, from 17563.9% to -548.0%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.4x to -24.1x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.36 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 63% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 17563.9% to -548.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.37x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 1.4% to -8.0%. 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.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 59% a year✓ 78.1% CAGR
Latest reported year was 198.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -550%✓ -548.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -24.1x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -6.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

1 good · 3 neutral · 7 weak

Market Cap

₹19 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

1.93x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.9

Loss-making

Negative earnings per share — the business is losing money

ROE

-8.0%

Weak

Weak capital efficiency

ROCE

-6.0%

Weak

Low return on total capital employed

Debt/Equity

5.37x

High

High leverage

Revenue Growth (YoY)

198.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-247.2%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹44

Operating Margin

0.5%

Weak

Thin margins leave little room for error

Net Margin

-22.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.36

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.49

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

47.3 / 58.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

2.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	—	₹0 Cr	₹0 Cr	+78.1%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	-₹0 Cr	—
EBITDA Margin	17563.9%	—	1898.9%	-548.0%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹0 Cr	-₹1 Cr	—
EPS	₹0.33	₹1.09	₹-0.52	₹-1.81	—
ROE	1.4%	4.4%	-2.1%	-8.0%	—
ROCE	3.1%	5.8%	0.2%	-6.0%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-28.2%
Free Cash Flow	₹0 Cr	₹1 Cr	-₹0 Cr	-₹0 Cr	—

🟢 Revenue has grown at 78.1% a year over 3 years.

🔴 EBITDA has turned negative, from ₹1 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 17563.9% to -548.0% over 3 years (-18112.0 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹1 Cr.

🔴 EPS has turned negative, from ₹0.33 to ₹-1.81.

🔴 ROE has fallen from 1.4% to -8.0% over 3 years (-9.5 pts).

🔴 ROCE has fallen from 3.1% to -6.0% over 3 years (-9.1 pts).

🟢 Total Debt has shrunk at 28.2% a year over 3 years.

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13 Cr

Total Liabilities

₹3 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

4.7%

Insider Holding

80.8%

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

2 mixed4 general

Subhash Silk Mills FY26 Results: Net loss widens to ₹76.57 lakh, income down 48%

scanx.trade, 24 SeptResults

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

Eastern Silk Industries Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

TNA SOLUTIONS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 10 Oct

LS polls: Tumkur hopes yarn will spin again for its textile industry

Business Standard, 24 Apr

Q2 Results Today: Hero MotoCorp, Lemon Tree Hotels, HAL, Glenmark Pharma among 1181 companies to post earnings on Nov 14

Livemint, 14 NovResults

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

PRASHANT INDIA LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 06 Dec

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

🔴Business QualityWeak4.7/20

🔴Financial HealthStretched6.5/20

🟢GrowthStrong18.4/20

🔴ProfitabilityWeak2.5/15

🔴ValuationDemanding5.1/15

🔴RiskHigh3.7/10

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

This thesis breaks if

✓Revenue growth stays above 59% a year78.1% CAGR
✓EBITDA margin holds above -550%-548.0%
✗Free cash flow remains positive-₹0 Cr
✗Interest cover stays above 3x-24.1x
✗ROCE stays above 8%-6.0%