Supertex Industries Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹5.88−₹0.11 (−1.84%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:54 pm

Understanding the Business

Company site ↗

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

What does this company do?

Supertex Industries Limited engages in the manufacturing of draw warped and sized yarn beams of polyester and nylon in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees73

Annual revenue₹48 Cr

How does it make money?

Turns over ₹48 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 73 employees supports ₹65.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹65.6 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 8.4% 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 -30% while net margin moved +341% 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-30%

Margin effect+341%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.5% is weak

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

88/ 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

9.0x

3Y Median

82.4x

40 monthly readings · mean 124.4x · range 41.3x–316.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 89% below its 3y median of 82.4x. 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 trades 87% below the peer median of 69.2x.

vs. its own history

Cheap

82.4x median over 40 months · -89%

vs. sector peers

Cheap

69.2x median of 4 peers · -87%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.1x

PEG

0.20

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 13% over 3 years.
Cash generation is improving
Free cash flow is up 35% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 3 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 77% against revenue up -30% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 89% 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.
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.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.6x 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

1EBITDA margin holds above 6%✓ 8.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.6x
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✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 8.4%
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

5 good · 4 neutral · 2 weak

Market Cap

₹7 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.0x

Cheap

Cheap against the generic band

P/B Ratio

0.19x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.65

Profitable

Profitable on a per-share basis

ROE

0.5%

Weak

Weak capital efficiency

ROCE

8.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

-37.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

290.7%

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

15.5%

Good

Healthy core-business profitability

Net Margin

1.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.74

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.65

Defensive

Steadier than the market

52W Range Position

36%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5.7 / 5.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹68 Cr	₹90 Cr	₹73 Cr	₹48 Cr	-11.1%
EBITDA	₹4 Cr	₹4 Cr	₹4 Cr	₹4 Cr	-5.0%
EBITDA Margin	6.5%	4.6%	5.1%	8.0%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹0 Cr	₹0 Cr	+45.8%
EPS	₹0.05	₹0.1	₹-0.07	₹0.14	+45.8%
ROE	0.2%	0.4%	-0.3%	0.5%	—
ROCE	9.5%	10.0%	8.5%	8.4%	—
Total Debt	₹25 Cr	₹23 Cr	₹21 Cr	₹21 Cr	-4.5%
Free Cash Flow	₹2 Cr	₹5 Cr	₹4 Cr	₹3 Cr	+10.6%

🔴 Revenue has shrunk at 11.1% a year over 3 years.

🔴 EBITDA has shrunk at 5.0% a year over 3 years.

🟢 EBITDA Margin has risen from 6.5% to 8.0% over 3 years (+1.4 pts).

🟢 PAT (Net Profit) has grown at 45.8% a year over 3 years.

🟢 EPS has grown at 45.8% a year over 3 years.

🟡 ROE has held roughly flat at 0.5% over 3 years.

🔴 ROCE has fallen from 9.5% to 8.4% over 3 years (-1.0 pts).

🟢 Total Debt has shrunk at 4.5% a year over 3 years.

🟢 Free Cash Flow has grown at 10.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹69 Cr

Total Liabilities

₹39 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

37.8%

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

1 mixed1 negative4 general

Supertex Industries shareholders approve FY26 accounts with 91% majority

scanx.trade, 30 Sept

Supertex Industries (BSE:SUPERTEX): India's Synthetic Yarn Chain

Kalkine India, 11 Sept

Supertex Industries turns profitable in FY26 with ₹16.15 lakh net profit

scanx.trade, 04 Sept

Q4 Results This Week: Over 1,900 Firms To Announce Earnings; Suzlon, ONGC, NBCC, BEML, Asian Paints In Focus

NDTV Profit, 23 MayResults

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

Sebi slaps Rs 31 L fine on 19 entities in Shri Lakshmi Cotsyn matter

The Times of India, 27 AprRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

RISAINTL Stock Price and Chart — BSE:RISAINTL

TradingView, 21 Aug

Watch Items

Revenue growth is negative (-37.7%) 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

StrongFinancial Health · Valuation

MiddlingGrowth

WeakBusiness Quality · Profitability · Risk

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. 3 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 ↑