Suryavanshi Spinning Mills Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹18.94₹0.00 (0.00%)

DalalBaazaar Score

32 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with modest growth. Solvency — whether it can keep funding itself at all — is 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 Suryavanshi 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?

Suryavanshi Spinning Mills Limited manufactures and sells polyester yarns in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees18

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 18 employees supports ₹38.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin25.3%

Net margin19.1%

Revenue / employee₹38.4 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 has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +395% while net margin moved -218% 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+395%

Margin effect-218%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

30/ 100

Expensive

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

8.5x

2Y Median

7.9x

28 monthly readings · mean 7.6x · range 5.1x–9.3x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 2y median of 7.9x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 88% below the peer median of 69.2x.

vs. its own history

Fair

7.9x median over 28 months · +7%

vs. sector peers

Cheap

69.2x median of 4 peers · -88%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

8.5x

P/B

—

EV/EBITDA

13.5x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 39% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 68.8% to 25.3% over 3 years.
Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.
Short-term liquidity is tight
Current ratio of 0.29 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.8x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 43.5 points, from 68.8% to 25.3%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 14.6x to 1.8x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.29 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 39% 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 88% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 68.8% to 25.3%. 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 8.2x 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.

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

1Revenue growth stays above 53% a year✓ 70.5% CAGR
Latest reported year was 92.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 23%✓ 25.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 8.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.8x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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 · 5 neutral · 2 weak

Market Cap

₹9 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.5x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹2.23

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

92.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

0.0%

Modest

Slow profit growth

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

CMP

₹18.94

Operating Margin

21.2%

Good

Healthy core-business profitability

Net Margin

16.6%

Good

Strong bottom-line conversion

Current Ratio

0.29

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.18

Defensive

Steadier than the market

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

18.2 / 17.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹3 Cr	₹7 Cr	+70.5%
EBITDA	₹1 Cr	₹0 Cr	₹0 Cr	₹2 Cr	+22.1%
EBITDA Margin	68.8%	50.2%	2.5%	25.3%	—
PAT (Net Profit)	-₹0 Cr	₹1 Cr	-₹2 Cr	₹1 Cr	—
EPS	₹-0.46	₹2.95	₹-3.42	₹2.69	—
ROCE	15.2%	82.1%	—	—	—
Total Debt	₹24 Cr	₹18 Cr	₹17 Cr	₹14 Cr	-15.4%
Free Cash Flow	-₹5 Cr	-₹14 Cr	₹1 Cr	₹3 Cr	—

🟢 Revenue has grown at 70.5% a year over 3 years.

🟢 EBITDA has grown at 22.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 68.8% to 25.3% over 3 years (-43.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-0.46 to ₹2.69.

🟢 Total Debt has shrunk at 15.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹5 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15 Cr

Total Liabilities

₹24 Cr

Total Debt

₹14 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.1%

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

Suryavanshi Spinning Mills Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 09 Sept

Suryavanshi Spinning Mills passes all resolutions at 47th AGM

scanx.trade, 01 Oct

Suryavanshi Spinning Mills adopts FY26 accounts at 47th AGM

scanx.trade, 30 Sept

Suryavanshi Spinning Mills Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Crisil Ratings reaffirms ratings of Nahar Spinning Mills at 'A/A1'

Business Standard, 27 Aug

Suryavanshi Spinning Mills sets Sep 19 record date for 47th AGM

scanx.trade, 29 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🟢GrowthStrong18.4/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

Suryavanshi Spinning Mills Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 53% a year70.5% CAGR
✓EBITDA margin holds above 23%25.3%
✗Debt / EBITDA falls below 3x8.2x
✗Interest cover stays above 3x1.8x
✓Free cash flow remains positive₹3 Cr