Swasti Vinayaka Synthetics Limited

Consumer Cyclical — Apparel Manufacturing · BSE

₹3.59+₹0.06 (+1.70%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Reasonable but unspectacular business quality, 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, 6:04 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 Swasti Vinayaka Synthetics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Swasti Vinayaka Synthetics Limited manufactures and sells suiting, shirting, and other apparel products in India.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees31

Annual revenue₹32 Cr

How does it make money?

Turns over ₹32 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 31 employees supports ₹1.03 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin11.5%

Net margin9.5%

Revenue / employee₹1.03 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.

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 13.6% 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.

ROCE13.6%

ROE11.7%

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +19% while net margin moved +28% 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+19%

Margin effect+28%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

• ROCE of 13.6% is adequate but not distinctive
• ROCE has been broadly stable
✗ EBITDA margin of 11.5% is thin — little cushion if costs rise
• Net margin of 10.5% is reasonable
• Revenue has compounded at 6.1% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

84/ 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

10.0x

3Y Median

24.8x

40 monthly readings · mean 23.2x · range 10.0x–36.6x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 60% below its 3y median of 24.8x. 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 86% below the peer median of 69.2x.

vs. its own history

Cheap

24.8x median over 40 months · -60%

vs. sector peers

Cheap

69.2x median of 4 peers · -86%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.0x

P/B

1.32x

EV/EBITDA

10.4x

PEG

0.65

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Valuation below its historical average
At 10.0x the stock trades 60% below its own median of 24.8x.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 152% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 42% against revenue growth of 19% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 71% against revenue growth of 19% — stock may not be moving.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 152% over 3 years, from ₹2 Cr to ₹6 Cr.
🟡Receivables growing faster than salesFinancial
Receivables up 42% against revenue up 19% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 71% against revenue up 19% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 60% 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 86% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Sales are being booked faster than collected
Receivables are up 42% against revenue up 19%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 6.1% 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 9%✓ 11.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.1% CAGR
Latest reported year was -2.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 13.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

₹32 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.0x

Cheap

Cheap against the generic band

P/B Ratio

1.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.36

Profitable

Profitable on a per-share basis

ROE

11.7%

Moderate

Moderate capital efficiency

ROCE

13.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

-2.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

100.0%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹3.59

Operating Margin

11.3%

Average

Average margins

Net Margin

10.5%

Good

Strong bottom-line conversion

Current Ratio

5.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3.6 / 3.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹27 Cr	₹31 Cr	₹38 Cr	₹32 Cr	+6.1%
EBITDA	₹3 Cr	₹3 Cr	₹4 Cr	₹4 Cr	+2.6%
EBITDA Margin	12.7%	11.3%	10.8%	11.5%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹2 Cr	₹3 Cr	+15.3%
EPS	₹0.23	₹0.23	₹0.27	₹0.33	+12.8%
ROE	10.7%	9.6%	10.5%	11.7%	—
ROCE	13.2%	11.4%	11.5%	13.6%	—
Total Debt	₹2 Cr	₹3 Cr	₹6 Cr	₹6 Cr	+36.2%
Free Cash Flow	₹3 Cr	-₹3 Cr	-₹1 Cr	₹1 Cr	-33.2%

🟢 Revenue has grown at 6.1% a year over 3 years.

🟢 EBITDA has grown at 2.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.7% to 11.5% over 3 years (-1.2 pts).

🟢 PAT (Net Profit) has grown at 15.3% a year over 3 years.

🟢 EPS has grown at 12.8% a year over 3 years.

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

🟡 ROCE has held roughly flat at 13.6% over 3 years.

🔴 Total Debt has grown at 36.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 33.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹41 Cr

Total Liabilities

₹15 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.7%

Corporate Actions

Ex-Dividend Date

19 Sept 2019

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

3 Indian Penny Stocks With Profits That Look Better Than Their Share Prices

Simply Wall Street, 17 Aug

Swasti Vinayaka Synthetics And 2 Indian Penny Stocks To Watch

Yahoo Finance, 28 Sept

Swasti Vinayaka Synthetics Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Swasti Vinayaka Synthetics accepts two director resignations effective Sept 1

scanx.trade, 26 Aug

3 Great Indian Penny Stocks To Own In September 2026

Simply Wall Street, 28 Sept

Swasti Vinayaka Synthetics Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Watch Items

Revenue growth is negative (-2.7%) 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

🟡Business QualityAdequate10.5/20

🟢Financial HealthStrong15.6/20

🟡GrowthModest11.3/20

🟢ProfitabilityStrong9.9/15

🟢ValuationAttractive13.2/15

🟡RiskModerate6.2/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 9%11.5%
✓Revenue growth stays above 5% a year6.1% CAGR
✓Free cash flow remains positive₹1 Cr
✓Debt / EBITDA stays below 2x1.7x
✓ROCE stays above 11%13.6%