Sunil Industries Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹79.80₹0.00 (0.00%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Sunil Industries Limited manufactures and sells textiles in India. The company offers cotton fabrics; flannelette clothes and rolls; polyester/cotton and polyester/viscose blended products; and polyester/viscose dope dyed products.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees30

Annual revenue₹226 Cr

How does it make money?

Turns over ₹226 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 30 employees supports ₹7.53 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin6.0%

Net margin2.0%

Revenue / employee₹7.53 Cr

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?Some evidence

ROCE of 18.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.9%

ROE8.5%

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 -1% while net margin moved +35% 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-1%

Margin effect+35%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.5% is weak

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

81/ 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

9.3x

3Y Median

9.5x

40 monthly readings · mean 9.9x · range 5.1x–19.4x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 9.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 87% below the peer median of 69.2x.

vs. its own history

Fair

9.5x median over 40 months · -2%

vs. sector peers

Cheap

69.2x median of 4 peers · -87%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.3x

P/B

0.62x

EV/EBITDA

5.0x

PEG

0.91

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 45% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 111% against revenue growth of -1% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 111% against revenue up -1% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 45% 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 87% 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?

Sales are being booked faster than collected
Receivables are up 111% against revenue up -1%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 4%✓ 6.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.3x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹17 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 16%✓ 18.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

5 good · 4 neutral · 2 weak

Market Cap

₹34 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.3x

Cheap

Cheap against the generic band

P/B Ratio

0.62x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.58

Profitable

Profitable on a per-share basis

ROE

8.5%

Moderate

Moderate capital efficiency

ROCE

18.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.65x

Moderate

Moderate leverage

Revenue Growth (YoY)

-25.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-33.5%

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

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹79.8

Operating Margin

4.3%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.47

Defensive

Steadier than the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

81.1 / 77.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹227 Cr	₹180 Cr	₹172 Cr	₹226 Cr	-0.2%
EBITDA	₹11 Cr	₹12 Cr	₹14 Cr	₹14 Cr	+5.9%
EBITDA Margin	5.0%	6.5%	8.1%	6.0%	—
PAT (Net Profit)	₹3 Cr	₹2 Cr	₹4 Cr	₹5 Cr	+10.2%
EPS	₹8.19	₹5.32	₹9.29	₹10.95	+10.2%
ROE	8.0%	4.9%	7.9%	8.5%	—
ROCE	19.4%	18.6%	19.9%	18.9%	—
Total Debt	₹64 Cr	₹54 Cr	₹55 Cr	₹35 Cr	-17.9%
Free Cash Flow	-₹9 Cr	₹9 Cr	₹9 Cr	₹17 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.2% a year).

🟢 EBITDA has grown at 5.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 6.0% over 3 years.

🟢 PAT (Net Profit) has grown at 10.2% a year over 3 years.

🟢 EPS has grown at 10.2% a year over 3 years.

🟡 ROE has held roughly flat at 8.5% over 3 years.

🟡 ROCE has held roughly flat at 18.9% over 3 years.

🟢 Total Debt has shrunk at 17.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹9 Cr to ₹17 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹142 Cr

Total Liabilities

₹88 Cr

Total Debt

₹35 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹20 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.7%

Corporate Actions

Ex-Dividend Date

21 Sept 1995

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 mixed1 negative3 general

Aether Industries: Sunil Singhania Stake in Specialty Chemicals

Univest, 13 Oct

Up 137% in 1 year, ace investor Sunil Singhania raises stake in this specialty chemicals stock - Should you buy too?

Livemint, 13 Oct

Sunil Singhania adds new stock to portfolio in Q2 after 140% rally; likely exits Cyient DLM

The Economic Times, 12 OctResults

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

Sunil Industries independent director steps down after second term

scanx.trade, 26 May

Kesoram Industries reports consolidated net loss of Rs 20.19 crore in the June 2026 quarter

Business Standard, 01 AugResults

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

Sunil Industries Q3FY26 Results: Revenue Declines 73% to ₹1621.39 Lakhs

scanx.trade, 12 FebResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-25.9%) 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

🟡Business QualityAdequate10.3/20

🟡Financial HealthAdequate12.7/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive11.8/15

🟡RiskModerate5.2/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 4%6.0%
✗Debt / EBITDA stays below 2x2.6x
✗Interest cover stays above 3x2.3x
✓Free cash flow remains positive₹17 Cr
✓ROCE stays above 16%18.9%