Swaraj Suiting Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹323.45−₹17.00 (−4.99%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Swaraj Suiting Limited manufacturing ecosystem spans cotton processing, spinning, weaving, yarn dyeing, denim, synthetic, and cotton fabrics. It also engages in the trade of yarn, dyes, grey, and finished fabric, as well as weaving on a job work basis.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees1,193

Annual revenue₹577 Cr

How does it make money?

Turns over ₹577 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 1,193 employees supports ₹48.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹48.3 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?Some evidence

ROCE of 17.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +163% while net margin moved +248% 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+163%

Margin effect+248%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.13 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

81/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

12.5x

3Y Median

18.3x

40 monthly readings · mean 19.7x · range 10.8x–43.7x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 31% below its 3y median of 18.3x. 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 82% below the peer median of 69.2x.

vs. its own history

Cheap

18.3x median over 40 months · -31%

vs. sector peers

Cheap

69.2x median of 4 peers · -82%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.1x

PEG

0.11

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 10.9% to 20.1% over 3 years.
Return on equity is rising
ROE has improved from 8.6% to 15.4%.
Return on capital is rising
ROCE has improved from 13.0% to 17.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 188% over 3 years, from ₹113 Cr to ₹327 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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 246% against revenue up 163% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 83% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 10.9% to 20.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 31% 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 82% 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?

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
4 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

1Revenue growth stays above 29% a year✓ 38.0% CAGR
Latest reported year was 138.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 20.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹100 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

8 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹854 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.5x

Cheap

Cheap against the generic band

P/B Ratio

2.13x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹25.8

Profitable

Profitable on a per-share basis

ROE

15.4%

Strong

Strong capital efficiency

ROCE

17.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.96x

Moderate

Moderate leverage

Revenue Growth (YoY)

138.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

46.1%

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

-₹100 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

16.4%

Good

Healthy core-business profitability

Net Margin

8.9%

Average

Average bottom-line conversion

Current Ratio

1.48

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

65%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

342.6 / 351.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹219 Cr	₹320 Cr	₹417 Cr	₹577 Cr	+38.0%
EBITDA	₹24 Cr	₹45 Cr	₹74 Cr	₹116 Cr	+69.3%
EBITDA Margin	10.9%	14.2%	17.8%	20.1%	—
PAT (Net Profit)	₹6 Cr	₹18 Cr	₹33 Cr	₹52 Cr	+109.3%
EPS	₹7.94	₹10.15	₹15.05	₹22.72	+42.0%
ROE	8.6%	17.3%	21.6%	15.4%	—
ROCE	13.0%	16.5%	17.9%	17.0%	—
Total Debt	₹113 Cr	₹175 Cr	₹268 Cr	₹327 Cr	+42.3%
Free Cash Flow	-₹72 Cr	-₹28 Cr	-₹100 Cr	-₹100 Cr	—

🟢 Revenue has grown at 38.0% a year over 3 years.

🟢 EBITDA has grown at 69.3% a year over 3 years.

🟢 EBITDA Margin has risen from 10.9% to 20.1% over 3 years (+9.2 pts).

🟢 PAT (Net Profit) has grown at 109.3% a year over 3 years.

🟢 EPS has grown at 42.0% a year over 3 years.

🟢 ROE has risen from 8.6% to 15.4% over 3 years (+6.8 pts).

🟢 ROCE has risen from 13.0% to 17.0% over 3 years (+4.0 pts).

🔴 Total Debt has grown at 42.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹858 Cr

Total Liabilities

₹518 Cr

Cash & Equivalents

₹11 Cr

Operating Cash Flow

-₹17 Cr

Capex

-₹83 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.6%

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 mixed5 general

Swaraj Suiting Upper Circuit Today: Price, Data and Peers

Univest, 13 Oct

Swaraj Suiting seeks approval for ₹174 crore preferential issue

scanx.trade, 01 Oct

NSE SME stock set for mainboard listing close to 52-week high after Q1FY27 results

Livemint, 10 AugResults

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

Compare with

Equitymaster, 08 Oct

Swaraj Suiting sets Sept 30 date for 23rd AGM with director revisions

scanx.trade, 30 Sept

Cricket stars Rohit Sharma, Tilak Verma to invest in smallcap multibagger stock’s preferential issue

The Economic Times, 26 Nov

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑