Super Tannery Limited

Consumer Cyclical — Footwear & Accessories · NSE

₹8.28+₹0.05 (+0.61%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Super Tannery Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Super Tannery Limited, together with its subsidiaries, manufactures, sells, and exports leather products in India. The company offers leather for automotive and furniture upholstery, safety, bags, belts, and sporting goods, as well as accessories.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees450

Annual revenue₹236 Cr

How does it make money?

Turns over ₹236 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 450 employees supports ₹52.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin9.8%

Net margin2.9%

Revenue / employee₹52.5 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.

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 11.7% 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.

ROCE11.7%

ROE6.1%

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 +10% while net margin moved -3% 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+10%

Margin effect-3%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.1% is weak

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

74/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

12.9x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 81% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -81%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.9x

P/B

0.82x

EV/EBITDA

7.7x

PEG

6.00

Dividend Yield

0.60%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 35% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Short-term liquidity is tight
Current ratio of 0.98 — near-term obligations exceed near-term assets.

Red Flags

4 items require attention · 1 high · 3 watch

🔴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.
🟡Debt is increasingFinancial
Total debt is up 35% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹21 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.98 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 81% 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?

The debt load needs earnings to hold up
Debt is 4.0x 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 3.3% 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.

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

1EBITDA margin holds above 8%✓ 9.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹21 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.7x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✗ 3.3% CAGR
Latest reported year was 11.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

5 / 10 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

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹89 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.9x

Cheap

Cheap against the generic band

P/B Ratio

0.82x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.64

Profitable

Profitable on a per-share basis

ROE

6.1%

Weak

Weak capital efficiency

ROCE

11.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.83x

Moderate

Moderate leverage

Revenue Growth (YoY)

11.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

10.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.60%

Modest

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

Free Cash Flow

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹8.28

Operating Margin

5.8%

Average

Average margins

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.98

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

35.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹214 Cr	₹218 Cr	₹270 Cr	₹236 Cr	+3.3%
EBITDA	₹18 Cr	₹20 Cr	₹23 Cr	₹23 Cr	+8.6%
EBITDA Margin	8.4%	9.4%	8.4%	9.8%	—
PAT (Net Profit)	₹6 Cr	₹6 Cr	₹7 Cr	₹7 Cr	+2.2%
EPS	₹0.59	₹0.54	₹0.62	₹0.62	+1.7%
ROE	6.9%	6.0%	6.4%	6.1%	—
ROCE	10.8%	11.0%	12.5%	11.7%	—
Total Debt	₹68 Cr	₹78 Cr	₹69 Cr	₹92 Cr	+10.5%
Free Cash Flow	₹12 Cr	-₹5 Cr	₹18 Cr	-₹21 Cr	—

🟢 Revenue has grown at 3.3% a year over 3 years.

🟢 EBITDA has grown at 8.6% a year over 3 years.

🟢 EBITDA Margin has risen from 8.4% to 9.8% over 3 years (+1.3 pts).

🟢 PAT (Net Profit) has grown at 2.2% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (1.7% a year).

🟡 ROE has held roughly flat at 6.1% over 3 years.

🟡 ROCE has held roughly flat at 11.7% over 3 years.

🔴 Total Debt has grown at 10.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹12 Cr to -₹21 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹294 Cr

Total Liabilities

₹184 Cr

Total Debt

₹92 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹25 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.0%

Corporate Actions

Dividend Rate

₹0.05

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

6 general

SUPTANERY Historical Data

Equitypandit, 19 Aug

SUPTANERY Stock Price and Chart — NSE:SUPTANERY

TradingView, 18 Aug

Super Tannery Consolidated June 2026 Net Sales at Rs 75.87 crore, up 11.91% Y-o-Y

Moneycontrol.com, 24 Aug

Super Tannery Ltd Locks at Upper Circuit With 4.13% Gain — Buyers Queue, Sellers Absent

MarketsMojo, 13 Oct

Super Tannery Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Super Tannery Ltd (NSE: SUPTANERY) Gains 9.98% as Stock Movement Draws Market Attention

Kalkine India, 25 Aug

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🔴Financial HealthStretched8.7/20

🔴GrowthWeak7.4/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive13/15

🟡RiskModerate5.4/10

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 8%9.8%
✗Debt / EBITDA falls below 3x4.0x
✗Free cash flow remains positive-₹21 Cr
✗Interest cover stays above 3x2.7x
✗Revenue growth stays above 4% a year3.3% CAGR