United Textiles Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹23.90₹0.00 (0.00%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company is currently losing money, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

United Textiles Limited manufactures and sells cotton yarn in India. The company was incorporated in 1993 and is based in Hisar, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees19

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹-57 reaches shareholders as profit, with ₹-37 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹21.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹21.6 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?Little sign of one

Returns on capital of -23.9% 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.

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 -75% while net margin moved -30570% 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-75%

Margin effect-30570%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROCE of -23.9% is below 10% — capital is not working hard
✗ ROCE has fallen by 26.6 points — returns are eroding
✗ EBITDA margin of -36.5% is thin — little cushion if costs rise
✗ The business is lossmaking at the net level

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

36/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 0.3% to -28.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 2.7% to -23.9% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -3.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 45.9 points, from 9.4% to -36.5%.
🔴Inventory building faster than salesFinancial
Inventory up 97% against revenue up -75% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.0x to -3.6x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.67 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 9.4% to -36.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 0.3% to -28.6%. 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.
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

1EBITDA margin holds above -39%✓ -36.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -3.6x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -23.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹7 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.90x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-12.22

Loss-making

Negative earnings per share — the business is losing money

ROE

-28.6%

Weak

Weak capital efficiency

ROCE

-23.9%

Weak

Low return on total capital employed

Debt/Equity

1.23x

Moderate

Moderate leverage

Revenue Growth (YoY)

-91.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-11756.2%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-559.1%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.67

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

23.8 / 21.4

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	₹16 Cr	₹13 Cr	₹10 Cr	₹4 Cr	-36.8%
EBITDA	₹2 Cr	₹2 Cr	₹2 Cr	-₹1 Cr	—
EBITDA Margin	9.4%	15.8%	17.9%	-36.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	-₹2 Cr	—
EPS	₹0.1	₹0.02	₹0.07	₹-7.81	—
ROE	0.3%	0.0%	0.2%	-28.6%	—
ROCE	2.7%	4.4%	4.5%	-23.9%	—
Total Debt	₹11 Cr	₹11 Cr	₹10 Cr	₹10 Cr	-1.6%
Free Cash Flow	-₹3 Cr	-₹0 Cr	₹2 Cr	₹0 Cr	—

🔴 Revenue has shrunk at 36.8% a year over 3 years.

🔴 EBITDA has turned negative, from ₹2 Cr to -₹1 Cr.

🔴 EBITDA Margin has fallen from 9.4% to -36.5% over 3 years (-45.9 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹2 Cr.

🔴 EPS has turned negative, from ₹0.1 to ₹-7.81.

🔴 ROE has fallen from 0.3% to -28.6% over 3 years (-28.9 pts).

🔴 ROCE has fallen from 2.7% to -23.9% over 3 years (-26.6 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.6% a year).

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹21 Cr

Total Liabilities

₹12 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

59.9%

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

United Textiles seeks reclassification of 18 promoter group members

scanx.trade, 17 Oct

United Textiles closes trading window from October 1 for Q2FY27 results

scanx.trade, 25 SeptResults

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

Fascinate Textiles shares list at 20% discount to issue price of Rs 151 on NSE SME platform

The Economic Times, 24 Aug

Africa Textile Market Size, Share | CAGR of 6.9%..

Market.us, 04 Jun

Industry body CITI warns 100% US tariffs could hit Indian textile exports

Business Standard, 19 Sept

Zero reciprocal tariff available to Indian textile exports too: Piyush Goyal clarifies on US trade deal a

The Times of India, 12 Feb

Watch Items

Revenue growth is negative (-91.8%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingValuation

WeakBusiness Quality · Financial Health · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑