Swiss Military Consumer Goods Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹13.60−₹0.02 (−0.15%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Swiss Military Consumer Goods Limited manufactures, trades, and markets lifestyle products in India. The company offers luggage, travel gear and accessories, backpacks, apparels, electronics, eyewear, baggage, leather accessories, and other related products.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees94

Annual revenue₹260 Cr

How does it make money?

Turns over ₹260 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 94 employees supports ₹2.76 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin5.0%

Net margin2.9%

Revenue / employee₹2.76 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 7.6% 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.

ROCE7.6%

ROE5.5%

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 +100% while net margin moved -39% 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+100%

Margin effect-39%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 7.6% is below 10% — capital is not working hard
✗ ROCE has fallen by 4.0 points — returns are eroding
✗ EBITDA margin of 5.0% is thin — little cushion if costs rise
✗ Net margin of 2.7% is slim
• Revenue has compounded at 26.0% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

49/ 100

Fair

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

45.3x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 34% 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 · -34%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

45.3x

P/B

2.28x

EV/EBITDA

23.5x

PEG

6.51

Dividend Yield

0.74%

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 9.1% to 5.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.6% to 7.6% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 184% against revenue growth of 100% — customers are taking longer to pay.

Red Flags

2 items require attention · 2 high

🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 184% against revenue up 100% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 34% 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?

Sales are being booked faster than collected
Receivables are up 184% against revenue up 100%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 9.1% to 5.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
2 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 19% a year✓ 26.0% CAGR
Latest reported year was -3.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 7.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹321 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

45.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.28x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.3

Profitable

Profitable on a per-share basis

ROE

5.5%

Weak

Weak capital efficiency

ROCE

7.6%

Weak

Low return on total capital employed

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

-3.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-25.0%

Falling

Profits are shrinking

Dividend Yield

0.74%

Modest

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

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹13.6

Operating Margin

4.3%

Weak

Thin margins leave little room for error

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.54

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

27.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹130 Cr	₹188 Cr	₹218 Cr	₹260 Cr	+26.0%
EBITDA	₹8 Cr	₹11 Cr	₹13 Cr	₹13 Cr	+16.8%
EBITDA Margin	6.2%	6.1%	6.0%	5.0%	—
PAT (Net Profit)	₹6 Cr	₹8 Cr	₹9 Cr	₹8 Cr	+7.0%
EPS	₹0.28	₹0.38	₹0.4	₹0.32	+4.7%
ROE	9.1%	11.4%	6.8%	5.5%	—
ROCE	11.6%	15.4%	8.4%	7.6%	—
Total Debt	—	₹0 Cr	₹17 Cr	₹16 Cr	—
Free Cash Flow	-₹17 Cr	-₹3 Cr	-₹51 Cr	-₹1 Cr	—

🟢 Revenue has grown at 26.0% a year over 3 years.

🟢 EBITDA has grown at 16.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.2% to 5.0% over 3 years (-1.3 pts).

🟢 PAT (Net Profit) has grown at 7.0% a year over 3 years.

🟢 EPS has grown at 4.7% a year over 3 years.

🔴 ROE has fallen from 9.1% to 5.5% over 3 years (-3.6 pts).

🔴 ROCE has fallen from 11.6% to 7.6% over 3 years (-4.0 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹181 Cr

Total Liabilities

₹45 Cr

Total Debt

₹16 Cr

Cash & Equivalents

₹35 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.6%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

18 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

1 negative5 general

Swiss Military AGM on Sep 25: FY26 profit down 16% despite 18% revenue growth

scanx.trade, 13 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

JKIPL Stock Price and Chart — NSE:JKIPL

TradingView, 15 Oct

Swiss Military Consumer Goods Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 28 Aug

Swiss Military Consumer Goods equity shares admitted on NSE

scanx.trade, 19 Aug

Swiss Military Consumer Goods Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Swiss Military: Premium, Made Accessible

IMPACT Magazine, 07 Sept

Watch Items

Revenue growth is negative (-3.2%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak5.9/20

🟢Financial HealthStrong14.5/20

🟡GrowthModest10/20

🔴ProfitabilityWeak4.6/15

🔴ValuationDemanding5.7/15

🟡RiskModerate5.4/10

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. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 19% a year26.0% CAGR
✓EBITDA margin holds above 3%5.0%
✗Free cash flow remains positive-₹1 Cr
✓Debt / EBITDA stays below 2x1.2x
✗ROCE stays above 8%7.6%