Binayak Tex Processors Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹1,597.80₹0.00 (0.00%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Binayak Tex Processors Limited manufactures and processes textile fabrics in India and internationally. The company was incorporated in 1983 and is based in Mumbai, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹244 Cr

How does it make money?

Turns over ₹244 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹7 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 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.

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 -4% while net margin moved -51% 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-4%

Margin effect-51%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.2% a year
✗ Profit has declined at 22.3% a year

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

51.7x

3Y Median

26.9x

40 monthly readings · mean 32.9x · range 10.0x–68.8x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 92% above its 3y median of 26.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 25% below the peer median of 69.2x.

vs. its own history

Expensive

26.9x median over 40 months · +92%

vs. sector peers

Cheap

69.2x median of 4 peers · -25%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

9.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 6.0% to 2.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.1% to 7.6% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 53% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 25% 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 ₹18 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?

The price already assumes success
The stock trades 92% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 6.0% to 2.5%. 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.

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

1EBITDA margin holds above 5%✓ 7.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹18 Cr
Profit that never becomes cash eventually stops being profit.
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

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

6 good · 2 neutral · 3 weak

Market Cap

₹114 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

51.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.15x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹30.92

Profitable

Profitable on a per-share basis

ROE

2.5%

Weak

Weak capital efficiency

ROCE

7.6%

Weak

Low return on total capital employed

Debt/Equity

0.49x

Low

Conservative leverage

Revenue Growth (YoY)

14.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

147.9%

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

₹18 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.1%

Weak

Thin margins leave little room for error

Net Margin

1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.19

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.02

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1650.6 / 1711.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹253 Cr	₹203 Cr	₹215 Cr	₹244 Cr	-1.2%
EBITDA	₹15 Cr	₹17 Cr	₹15 Cr	₹18 Cr	+5.2%
EBITDA Margin	6.0%	8.2%	6.9%	7.2%	—
PAT (Net Profit)	₹5 Cr	₹6 Cr	₹3 Cr	₹2 Cr	-22.3%
EPS	₹74.22	₹78.12	₹39.1	₹34.8	-22.3%
ROE	6.0%	6.0%	2.9%	2.5%	—
ROCE	11.1%	10.4%	8.7%	7.6%	—
Total Debt	₹52 Cr	₹62 Cr	₹54 Cr	₹48 Cr	-2.5%
Free Cash Flow	₹16 Cr	₹22 Cr	₹14 Cr	₹18 Cr	+3.0%

🟡 Revenue has been broadly flat over 3 years (-1.2% a year).

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

🟢 EBITDA Margin has risen from 6.0% to 7.2% over 3 years (+1.2 pts).

🔴 PAT (Net Profit) has shrunk at 22.3% a year over 3 years.

🔴 EPS has shrunk at 22.3% a year over 3 years.

🔴 ROE has fallen from 6.0% to 2.5% over 3 years (-3.5 pts).

🔴 ROCE has fallen from 11.1% to 7.6% over 3 years (-3.5 pts).

🟢 Total Debt has shrunk at 2.5% a year over 3 years.

🟢 Free Cash Flow has grown at 3.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹219 Cr

Total Liabilities

₹120 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹18 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

87.4%

Corporate Actions

Ex-Dividend Date

22 Sept 2016

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

Binayak Tex Processors Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 28 Sept

Binayak Tex Processors Limited (ZBINTXPP.BO) Stock Price, News, Quote & History

Yahoo! Finance Canada, 14 Oct

Binayak Tex Processors schedules board meeting for Sep 4 to approve FY26 reports

scanx.trade, 26 Aug

Binayak Tex Processors (BSE: 523054) - Company and Sector Overview

Kalkine India, 16 Sept

BINAYAK TEX PROCESSORS LTD. Share Price

Upstox, 21 Mar

TUNITEX Stock Price and Chart — BSE:TUNITEX

TradingView, 31 Jul

Watch Items

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

MiddlingFinancial Health · Risk

WeakBusiness Quality · Growth · Profitability · Valuation

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

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑