Vijay Textiles Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹4.00+₹0.01 (+0.25%)

DalalBaazaar Score

35 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vijay Textiles Limited manufactures and sells textile fabrics in India. The company offers sofa upholstery, curtains, blinds, bed and bath, and readymade curtain products.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹8 Cr

How does it make money?

Turns over ₹8 Cr a year. Of every ₹100 of sales, about ₹-178 reaches shareholders as profit, with ₹-23 left at the operating level before interest, tax and depreciation.

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 -3.1% 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 -61% while net margin moved +224% 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-61%

Margin effect+224%

DalalBaazaar Score

35/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 31.5 points over the period

Quality vs. Valuation

Company Quality

32/ 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 -15.4% to -46.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from -0.8% to -3.1% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 5 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 7.05x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.7x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹14 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 24.1 points, from 1.6% to -22.5%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -0.6x to -0.7x.

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 1.6% to -22.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 7.05x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from -15.4% to -46.9%. 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.

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

1EBITDA margin holds above -25%✓ -22.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -0.7x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -3.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

3 good · 2 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

0.24x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-7.95

Loss-making

Negative earnings per share — the business is losing money

ROE

-38.0%

Weak

Weak capital efficiency

ROCE

-3.1%

Weak

Low return on total capital employed

Debt/Equity

7.05x

High

High leverage

Revenue Growth (YoY)

-53.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

38.6%

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

₹38 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

-1.0%

Weak

Assets generate little profit

Operating Margin

-119.4%

Weak

Thin margins leave little room for error

Net Margin

-178.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.79

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.31

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3.9 / 3.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹21 Cr	₹23 Cr	₹13 Cr	₹8 Cr	-27.1%
EBITDA	₹0 Cr	₹4 Cr	₹0 Cr	-₹2 Cr	—
EBITDA Margin	1.6%	15.9%	0.4%	-22.5%	—
PAT (Net Profit)	-₹12 Cr	-₹7 Cr	-₹24 Cr	-₹14 Cr	—
EPS	₹-6.29	₹-3.56	₹-12.85	—	—
ROE	-15.4%	-9.5%	-52.1%	-46.9%	—
ROCE	-0.8%	-0.6%	-2.4%	-3.1%	—
Total Debt	₹228 Cr	₹221 Cr	₹226 Cr	₹217 Cr	-1.6%
Free Cash Flow	-₹16 Cr	₹10 Cr	₹6 Cr	₹3 Cr	—

🔴 Revenue has shrunk at 27.1% a year over 3 years.

🔴 EBITDA has turned negative, from ₹0 Cr to -₹2 Cr.

🔴 EBITDA Margin has fallen from 1.6% to -22.5% over 3 years (-24.1 pts).

🔴 ROE has fallen from -15.4% to -46.9% over 3 years (-31.5 pts).

🔴 ROCE has fallen from -0.8% to -3.1% over 3 years (-2.2 pts).

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

🟢 Free Cash Flow has turned positive, from -₹16 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹341 Cr

Total Liabilities

₹310 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

₹3 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.1%

Corporate Actions

Ex-Dividend Date

19 Sept 2018

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

Vijay Textiles Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 05 Oct

What's Next for Vijay Textiles? The Catalysts and Risks That Could Shape Its Next Move

Kalkine India, 08 Sept

Vijay Textiles Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

TNA SOLUTIONS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 10 Oct

Vijay Textiles Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 29 Aug

Raja Venkatraman, MarketSmith recommend four stocks for 27 April

Livemint, 27 Apr

Watch Items

Revenue growth is negative (-53.7%) 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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · 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. 5 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 ↑