1. At a Glance – When a Textile Company Becomes a Landlord With Machines
Let’s get this straight: Shri Dinesh Mills Ltd is 90 years old, trades at a market cap of ~₹137 Cr, has a book value of ₹352, yet the stock chills at ₹244 like it’s ashamed of its own balance sheet. Price-to-book of 0.69, P/E of 9.22, debt of just ₹5.5 Cr, and a current ratio of 8.97 — this is not a stressed company, this is a company sitting on cash and assets wondering what to do with life.
Latest Q3 FY26 (Dec 2025) numbers?
- Revenue: ₹15.56 Cr (YoY -4%)
- PAT: ₹2.31 Cr (YoY +5.7%)
- EPS: ₹4.12
- OPM: 1.22% (yes, that’s not a typo)
But before you judge the margins, pause. This is a company that shut down its original worsted fabric business in 2018, sold land and offices for ₹50+ Cr, earned chunky other income, and slowly morphed into an industrial textiles + pharma adjacency + balance-sheet arbitrage story.
Stock returns?
- 1 year: -37.5%
- 3 years: -24.8%
- 5 years: -3.3%
Classic “looks cheap, feels sleepy” setup. Or is it a value trap wearing a P/B discount mask? Let’s open the files like a bored but dangerous auditor.
2. Introduction – A Mill Older Than Independence, Still Filing Quarterly Results
Founded in 1935, Shri Dinesh Mills has seen the British Raj, License Raj, textile booms, textile busts, and WhatsApp University analysts. Originally a worsted fabric (menswear) manufacturer, the company did something rare in India: it admitted defeat early.
In October 2018, management pulled the plug on:
- Worsted fabrics (Vadodara)
- Yarn, tops & grey fabrics (Ankleshwar)
Instead of burning cash to “revive heritage”, they pivoted hard into papermakers’ felts and industrial textiles — boring products, unsexy customers, long replacement cycles, but real cash flows.
Then came the real alpha move:
- Sold surplus industrial land in Vadodara for ₹45.75 Cr
- Sold Mumbai office for ₹5.15 Cr
That’s when profits spiked, other income exploded, and the P&L
started looking like a CA exam case study. Question for you:
👉 Is this a manufacturing company that occasionally sells land, or a land-rich company that occasionally manufactures?
3. Business Model – WTF Do They Even Do Now?
Step 1: Forget Shirts and Suits
Shri Dinesh Mills no longer cares what you wear to weddings.
Step 2: Focus on Machines That Never Attend Weddings
The company now manufactures industrial textiles, mainly for paper mills.
Core Products
A. Press Felts
- Dinflo
- Dinvent
- Dinply
Used in paper machines where pulp is pressed and water is removed. These are consumables — replace every few months. Sticky customers.
B. Dryer Screens
- Hi Contact Mono (Regular & Uni-Screen)
- Spiral Dryer Fabrics
Used in the drying section of paper machines. Think of them as industrial underwear — nobody talks about them, but operations stop without them.
C. Fiber & Asbestos Felts
- Dinasorb Pipe & Sheet Felts
Used for insulation and industrial absorption. Legacy but niche.
D. Filter Fabrics
Industrial filtration — boring, defensive, margin-controlled.
This is not a growth-bro business. It’s a maintenance-capex industry. Customers don’t experiment much. Once approved, suppliers stick.
So why aren’t margins great? Because scale is small, competition exists, and raw material costs swing faster than the company’s pricing power.
Does this business excite you? No.
Does it survive recessions? Mostly yes.
4. Financials Overview –
