Super Spinning Mills Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹6.95+₹0.08 (+1.16%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Super Spinning Mills Limited engages in the infrastructure services in India. It offers rental services. The company was incorporated in 1962 and is based in Coimbatore, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees5

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹-92 reaches shareholders as profit, with ₹74 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹1.26 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.26 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.6% 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 +14% while net margin moved -74% 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+14%

Margin effect-74%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✓ ROE has improved by 10.1 points over the period

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

55/ 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

57.9x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 16% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

69.2x median of 4 peers · -16%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

11.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 65% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -21.8% to -11.7%.

🔴 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

🔴The company is lossmakingFinancial
Net profit of -₹6 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 50.5 points, from 124.9% to 74.4%.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.33 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 65% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹3 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 124.9% to 74.4%. 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 3.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 4.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 72%✓ 74.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.2x
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✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 4.4% CAGR
Latest reported year was -0.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 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 · 2 neutral · 4 weak

Market Cap

₹39 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

57.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.77x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.12

Profitable

Profitable on a per-share basis

ROE

-11.7%

Weak

Weak capital efficiency

ROCE

4.6%

Weak

Low return on total capital employed

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

-0.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

64.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

49.2%

Good

Healthy core-business profitability

Net Margin

-82.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.33

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

7.3 / 6.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

18.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹7 Cr	₹7 Cr	₹6 Cr	+4.4%
EBITDA	₹7 Cr	₹6 Cr	₹5 Cr	₹5 Cr	-12.2%
EBITDA Margin	124.9%	87.7%	74.0%	74.4%	—
PAT (Net Profit)	-₹20 Cr	-₹21 Cr	-₹16 Cr	-₹6 Cr	—
EPS	₹-3.56	₹-3.8	₹-2.98	₹-1.05	—
ROE	-21.8%	-29.2%	-29.7%	-11.7%	—
ROCE	4.0%	2.1%	5.3%	4.6%	—
Total Debt	₹44 Cr	₹28 Cr	₹22 Cr	₹15 Cr	-29.7%
Free Cash Flow	-₹10 Cr	₹3 Cr	—	₹3 Cr	—

🟢 Revenue has grown at 4.4% a year over 3 years.

🔴 EBITDA has shrunk at 12.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 124.9% to 74.4% over 3 years (-50.5 pts).

🟢 ROE has risen from -21.8% to -11.7% over 3 years (+10.1 pts).

🟡 ROCE has held roughly flat at 4.6% over 3 years.

🟢 Total Debt has shrunk at 29.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹10 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹90 Cr

Total Liabilities

₹40 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

46.5%

Corporate Actions

Ex-Dividend Date

08 Sept 2008

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

Super Spinning Mills Co-Promoter Group Buys 1.79 Lakh Shares Via Open Market

Sahi, 03 Sept

Super Spinning Mills (NSE:SUPERSPIN): Has It Filed Its Q2 FY27 Depository Compliance Certificate?

Kalkine India, 15 OctResults

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

Super Spinning Mills Share Price Forecast to 2030

Univest, 31 Jul

Super Spinning Mills promoter raises stake to 17.67%

scanx.trade, 27 Jun

Super Spinning Mills Ltd Downgraded to Strong Sell Amid Weak Fundamentals and Bearish Technicals

MarketsMojo, 29 SeptAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Super Spinning Mills Q2 2026 Earnings: Loss Per Share of ₹1.05 as Revenue Slips 4.8% Year-on-Year - Share Dilution Risk

https://www.siam.in/, 14 SeptResults

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

Watch Items

Revenue growth is negative (-0.6%) 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.
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

MiddlingBusiness Quality · Financial Health · Valuation · Risk

WeakGrowth · Profitability

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.

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