SEL Manufacturing Co. Ltd. (SELMC) AI Stock Analysis

• Market Cap: ₹936.72M
• Dividend Yield: N/A
• Average Volume (3M): 3.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 338
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): -13.35
• Shares Outstanding: 33,134,700
• 10 Day Avg. Volume: 6,573
• 30 Day Avg. Volume: 3,342
• PEG Ratio: 0.02
• Price to Book (P/B): -0.45
• Price to Sales (P/S): 2.85
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ₹26.00 ▼(-16.13% Downside)

The score is driven primarily by weak financial performance (large losses, negative equity, high debt, and deteriorating/volatile cash flow). Technicals add additional pressure with the stock trading below major moving averages and a negative MACD. Valuation provides limited support because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Positive EBITDA

Positive EBITDA in FY2025 indicates the core manufacturing operations can generate earnings before non-cash charges, interest and taxes. This suggests an underlying operational footprint that can become sustainably cash-generative if financing costs and one-off/non-cash charges are addressed, improving long-term viability.

Prior cash generation track record

The company delivered positive operating and free cash flow across FY2022–FY2024, showing it has historically been able to self-fund operations. That track record implies management and the business can generate cash under better conditions, offering a durable foundation for a turnaround if structural issues are fixed.

Sizable asset base

A substantial asset base provides structural optionality: assets can support refinancing, secure credit lines, or be monetized via sales/leases to reduce leverage. This tangible-capital position is a durable strength for restructuring and preserving enterprise value during a multi-quarter recovery plan.

Negative Factors

Negative equity & high leverage

Negative shareholders' equity combined with very large debt creates persistent solvency and refinancing risk. Accumulated losses shrink capital buffers, constrain access to new financing, and limit strategic flexibility, raising the probability of covenant stress or forced deleveraging over the medium term.

Shrinking revenue and negative gross margin

Declining top-line and a negative gross margin indicate the core apparel business is losing pricing power or facing structural cost/efficiency issues. When the business cannot cover direct costs at scale, margins and profitability remain impaired, threatening sustainable recovery absent fundamental operational change.

Deteriorating, volatile cash flow

Weak and erratic cash generation—recently slipping to slightly negative OCF and breakeven FCF—reduces ability to service debt, fund capex, or invest in operations. Persistent volatility increases refinancing risk and makes multi-quarter planning and creditor confidence materially more difficult.

SEL Manufacturing Co. Ltd. Business Overview & Revenue Model

Company Description

SEL Manufacturing Company Limited engages in the spinning, knitting, and processing of yarns and fabrics in India and internationally. It offers knitted garments, terry towels, knitted and processed fabrics, and various kinds of yarn. The company, through its subsidiary, SEL Aviation Pvt. Ltd., provides aviation services. SEL Manufacturing Company Limited was founded in 1969 and is based in Ludhiana, India.

How the Company Makes Money

SEL Manufacturing Co. Ltd. Financial Statement Overview

Summary

Financial profile is stressed: shrinking revenue, deeply negative profitability (including negative gross margin), high leverage with negative equity, and weakening/volatile cash generation with FY2025 operating cash flow turning slightly negative.

Income Statement

Operating performance is weak and volatile. Revenue has been shrinking recently (down ~7% in FY2025 and down sharply versus FY2023), while profitability is deeply negative: FY2025 shows a large loss with negative gross margin, negative operating margin, and a very large net loss. Although EBITDA is positive in FY2025, it is not translating into operating profit or net profit, indicating heavy non-cash charges, depreciation/interest burden, or other below-EBITDA costs. Overall, earnings quality and consistency are poor.

Balance Sheet

Balance sheet risk is elevated due to high debt and erosion of equity. Total debt remains very large (roughly ₹9.6B in FY2025) and shareholders’ equity is negative in FY2025, which signals accumulated losses and a weakened capital base. The shift from positive equity in FY2022/FY2021 to negative equity in FY2024/FY2025 is a notable deterioration, increasing refinancing and solvency risk despite sizable assets on the balance sheet.

Cash Flow

Cash generation has deteriorated. FY2025 operating cash flow turned slightly negative and free cash flow dropped to around breakeven, a step down from positive operating and free cash flow in FY2022–FY2024. Cash flow has also been highly volatile historically (including a very large operating cash outflow in FY2021), reducing confidence in the company’s ability to internally fund operations and service debt through cycles.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	180.01M	328.69M	3.52B	5.54B	4.20B	1.89B
Gross Profit	-116.64M	-907.82M	163.80M	1.07B	3.06B	-1.17B
EBITDA	255.74M	327.65M	-381.81M	-411.65M	38.25M	26.16B
Net Income	-1.40B	-1.31B	-1.93B	-1.86B	-1.31B	25.07B
Balance Sheet
Total Assets	0.00	9.48B	10.55B	12.25B	13.85B	14.92B
Cash, Cash Equivalents and Short-Term Investments	30.02M	30.02M	33.92M	33.52M	74.12M	124.64M
Total Debt	0.00	9.62B	9.40B	9.32B	10.17B	9.59B
Total Liabilities	2.09B	11.58B	11.11B	10.76B	11.21B	10.76B
Stockholders Equity	-2.09B	-2.09B	-563.89M	1.49B	2.64B	4.16B
Cash Flow
Free Cash Flow	162.60M	0.00	371.90M	441.14M	355.08M	-12.28B
Operating Cash Flow	164.39M	-24.58M	371.90M	441.72M	361.18M	-12.26B
Investing Cash Flow	-967.00K	22.91M	151.34M	163.88M	25.32M	9.92B
Financing Cash Flow	-165.22M	-697.04M	-522.95M	-604.65M	-429.01M	2.37B

SEL Manufacturing Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAMBODHARA	69 Neutral	₹1.24B	15.32	―	0.42%	13.13%	-2.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SURYALAXMI	55 Neutral	₹1.14B	20.62	―	―	4.60%	226.64%
ZENITHEXPO	55 Neutral	₹1.18B	20.00	―	―	8.45%	―
LOYALTEX	49 Neutral	₹1.02B	-8.05	―	―	-30.97%	80.99%
SELMC	42 Neutral	₹936.72M	-0.67	―	―	―	―

SEL Manufacturing Co. Ltd. Corporate Events

SEL Manufacturing Closes Trading Window Ahead of December Quarter Results

SEL Manufacturing Company Limited has announced the closure of its trading window for designated persons and their immediate relatives from 1 January 2026 until 48 hours after the declaration of its unaudited financial results for the quarter and nine months ended 31 December 2025, in line with SEBI’s Prohibition of Insider Trading regulations and the company’s internal code of conduct. The move is a standard corporate governance measure aimed at preventing insider trading ahead of financial disclosures, signaling that the company is preparing to release its upcoming results, with the exact date of the board meeting for approving these numbers to be communicated later to the market.