Superhouse Limited

Consumer Cyclical — Footwear & Accessories · NSE

₹159.41+₹1.86 (+1.18%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Superhouse Limited engages in the manufacture and sale of leather and leather products, as well as textile garments in India and internationally. The company offers finished leather, leather shoes, leather uppers, and other leather goods, along with riding accessories.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees1,335

Annual revenue₹649 Cr

How does it make money?

Turns over ₹649 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 1,335 employees supports ₹48.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹48.6 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 4.4% 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 -11% while net margin moved -87% 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-11%

Margin effect-87%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.7% a year
✗ Profit has declined at 51.2% a year
✗ Profit fell 66.2% in the latest year

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

59/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

21.4x

3Y Median

17.3x

40 monthly readings · mean 18.8x · range 8.2x–59.4x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 24% above its 3y median of 17.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 69% below the peer median of 69.2x.

vs. its own history

Expensive

17.3x median over 40 months · +24%

vs. sector peers

Cheap

69.2x median of 4 peers · -69%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

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 Attention2

Return on equity is falling
ROE has dropped from 6.1% to 0.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 9.7% to 4.4% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 88% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.4 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹40 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 8.9% to 6.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 24% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 6.1% to 0.7%. 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 5%✓ 6.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹40 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 4.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

4 good · 4 neutral · 3 weak

Market Cap

₹176 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.44

Profitable

Profitable on a per-share basis

ROE

0.7%

Weak

Weak capital efficiency

ROCE

4.4%

Weak

Low return on total capital employed

Debt/Equity

0.37x

Low

Conservative leverage

Revenue Growth (YoY)

0.1%

Modest

Modest growth

Profit Growth (YoY)

-66.2%

Falling

Profits are shrinking

Dividend Yield

0.50%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹40 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.4%

Weak

Thin margins leave little room for error

Net Margin

1.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

159.5 / 164.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

36.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹727 Cr	₹638 Cr	₹631 Cr	₹649 Cr	-3.7%
EBITDA	₹64 Cr	₹45 Cr	₹39 Cr	₹42 Cr	-13.1%
EBITDA Margin	8.9%	7.0%	6.2%	6.5%	—
PAT (Net Profit)	₹27 Cr	₹12 Cr	₹9 Cr	₹3 Cr	-51.2%
EPS	₹24.04	₹11.61	₹8.48	₹2.87	-50.8%
ROE	6.1%	2.8%	2.0%	0.7%	—
ROCE	9.7%	6.0%	5.3%	4.4%	—
Total Debt	₹192 Cr	₹205 Cr	₹211 Cr	₹181 Cr	-2.0%
Free Cash Flow	-₹15 Cr	-₹10 Cr	-₹5 Cr	₹40 Cr	—

🔴 Revenue has shrunk at 3.7% a year over 3 years.

🔴 EBITDA has shrunk at 13.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.9% to 6.5% over 3 years (-2.4 pts).

🔴 PAT (Net Profit) has shrunk at 51.2% a year over 3 years.

🔴 EPS has shrunk at 50.8% a year over 3 years.

🔴 ROE has fallen from 6.1% to 0.7% over 3 years (-5.4 pts).

🔴 ROCE has fallen from 9.7% to 4.4% over 3 years (-5.3 pts).

🟡 Total Debt has been broadly flat over 3 years (-2.0% a year).

🟢 Free Cash Flow has turned positive, from -₹15 Cr to ₹40 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹862 Cr

Total Liabilities

₹373 Cr

Cash & Equivalents

₹17 Cr

Operating Cash Flow

₹53 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.9%

Corporate Actions

Dividend Rate

₹0.8

Ex-Dividend Date

15 Sept 2026

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 positive1 mixed3 general

Superhouse Share Price

Upstox, 16 Oct

Superhouse vs Nifty 50: 1Y Return -1.33% vs -9.64%

Univest, 14 Oct

Superhouse Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Sept

Income Investors Should Know That Superhouse Limited (NSE:SUPERHOUSE) Goes Ex-Dividend Soon

Simply Wall Street, 11 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Superhouse shareholders approve ₹0.80 dividend for FY26

scanx.trade, 30 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Superhouse 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.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

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

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑