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Check Before You Invest : Aastha Spintex Ltd

BSE: 544808 NSE: AASTHA ISIN: INE2FMX01012
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Aastha Spintex Ltd belong to?
Aastha Spintex Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Aastha Spintex Ltd a good quality company?
Aastha Spintex Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Aastha Spintex Ltd undervalued or overvalued?
Aastha Spintex Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 14.16 21.83
Price to Book 1.02 1.75
Price to Sales 0.76 1.46
EV to EBITDA 8.04 11.73
Q.4 Is Aastha Spintex Ltd a good buy now?
Aastha Spintex Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Aastha Spintex Ltd?
Aastha Spintex Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.6% for FY-2025, which is above its 3-year median of 9%, indicating increasing margins.

Q.2 Operating Profit Margin of Aastha Spintex Ltd?
Aastha Spintex Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.2% for FY-2025, which is above its 3-year median of 12.2% indicating increasing margins.

Q.3 Net Profit Margin of Aastha Spintex Ltd?
Aastha Spintex Ltd Net Profit Margin is 6.69% for FY-2025, is above its 3-year median of 5.34%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 11.6 9
Operating Profit Margin (%) 14.2 12.2
Net Profit Margin (%) 6.69 5.34

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Aastha Spintex Ltd?
Aastha Spintex Ltd Return on Asset is 9.1%, which is above its 3-year historical median of 7.87%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Aastha Spintex Ltd?
Aastha Spintex Ltd Return on capital employed is 22.78% for FY-2025, which is above its 3-year historical median of 21.14%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Aastha Spintex Ltd?
Aastha Spintex Ltd Return on equity is 23.79% for FY-2025, which is in line with its 3-year historical median of 23.79%, indicating the business is making similar use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Aastha Spintex Ltd?
Aastha Spintex Ltd Debt-to-Equity ratio is 0.78, which is above the industry average of 0.42, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Aastha Spintex Ltd?
Aastha Spintex Ltd Debt to cash flow from operations is -5.08, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Aastha Spintex Ltd?

Q.1 Promoter shareholding and pledge status of Aastha Spintex Ltd?
Promoters hold 53.21% of the Aastha Spintex Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aastha Spintex Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Aastha Spintex Ltd vs industry peers?
Aastha Spintex Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0.93%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 0.9
Gross Profit Growth (%) 51.9 10.3
Operating Profit Growth (%) 35.1 7.8
Net Profit Growth (%) 43.8 11.4
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.36 0.99
ROE (%) 23.79 5.56
ROCE (%) 22.78 7.78
Cash Conversion Cycle (days) 94.03 101

Valuation & price assessment

Q.1 Stock return of Aastha Spintex Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Aastha Spintex Ltd vs historical?
The current P/E ratio of 14.16 is lower than its historical median of 21.83, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 14.16 21.83 21.85
Price to Book 1.02 1.75 1.39
Price to Sales 0.76 1.46 1.29
EV to EBITDA 8.04 11.73 10.21

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