Winsome Textile Industries Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹81.40−₹0.41 (−0.50%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Winsome Textile Industries Limited engages in manufactures and sells yarns and fabrics for knitting and weaving in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees2,482

Annual revenue₹814 Cr

How does it make money?

Turns over ₹814 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 2,482 employees supports ₹32.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹32.8 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 11.7% 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 +1% while net margin moved +7% 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+1%

Margin effect+7%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.0% is weak

Quality vs. Valuation

Company Quality

46/ 100

Average

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 reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

5.4x

3Y Median

10.8x

40 monthly readings · mean 28.5x · range 5.1x–67.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 50% below its 3y median of 10.8x. 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 92% below the peer median of 69.2x.

vs. its own history

Cheap

10.8x median over 40 months · -50%

vs. sector peers

Cheap

69.2x median of 4 peers · -92%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.0x

PEG

1.99

What's Good / What's Bad

🟢 What's Going Well1

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

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 55% against revenue up 1% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 50% 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 92% 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?

The debt load needs earnings to hold up
Debt is 3.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 55% against revenue up 1%. 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 0.4% 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%✓ 10.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✓ 3.0x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 0.4% CAGR
Latest reported year was 6.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹15 Cr
Profit that never becomes cash eventually stops being profit.

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

5 good · 6 neutral · 0 weak

Market Cap

₹161 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.4x

Cheap

Cheap against the generic band

P/B Ratio

0.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹14.94

Profitable

Profitable on a per-share basis

ROE

8.0%

Moderate

Moderate capital efficiency

ROCE

11.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.86x

Moderate

Moderate leverage

Revenue Growth (YoY)

6.9%

Modest

Modest growth

Profit Growth (YoY)

29.2%

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

₹15 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.4%

Average

Average margins

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

1.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

80.3 / 83.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹804 Cr	₹756 Cr	₹791 Cr	₹814 Cr	+0.4%
EBITDA	₹75 Cr	₹70 Cr	₹79 Cr	₹88 Cr	+5.2%
EBITDA Margin	9.4%	9.2%	10.0%	10.8%	—
PAT (Net Profit)	₹25 Cr	₹19 Cr	₹28 Cr	₹27 Cr	+2.7%
EPS	₹12.32	₹9.43	₹1.42	₹1.34	-52.2%
ROE	9.6%	6.8%	9.3%	8.0%	—
ROCE	12.9%	11.1%	13.3%	11.7%	—
Total Debt	₹278 Cr	₹286 Cr	₹253 Cr	₹283 Cr	+0.6%
Free Cash Flow	₹70 Cr	₹23 Cr	₹80 Cr	₹15 Cr	-40.5%

🟡 Revenue has been broadly flat over 3 years (0.4% a year).

🟢 EBITDA has grown at 5.2% a year over 3 years.

🟢 EBITDA Margin has risen from 9.4% to 10.8% over 3 years (+1.4 pts).

🟢 PAT (Net Profit) has grown at 2.7% a year over 3 years.

🔴 EPS has shrunk at 52.2% a year over 3 years.

🔴 ROE has fallen from 9.6% to 8.0% over 3 years (-1.5 pts).

🔴 ROCE has fallen from 12.9% to 11.7% over 3 years (-1.2 pts).

🟡 Total Debt has been broadly flat over 3 years (0.6% a year).

🔴 Free Cash Flow has shrunk at 40.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹922 Cr

Total Liabilities

₹592 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹70 Cr

Capex

-₹55 Cr

Shareholding (proxy)

Institutional Holding

8.1%

Insider Holding

65.8%

Corporate Actions

Ex-Dividend Date

13 Jun 2011

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

2 positive1 mixed3 general

Winsome Textile Approves Rs 170 Cr Expansion and Modernization Plan

scanx.trade, 25 JunCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Winsome Textile Industries standalone net profit rises 25.80% in the June 2026 quarter

Business Standard, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Winsome Textile Industries Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Winsome Textile net profit rises 26% in Q1FY27 on lower finance costs

scanx.trade, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Winsome Textile Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Winsome Textile Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

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.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Revenue growth stays above 4% a year · see Key things to watch ↑