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Check Before You Invest : Anjani Synthetics Ltd

BSE: 531223 NSE: ISIN: INE364D01032
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Anjani Synthetics Ltd belong to?
Anjani Synthetics Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Anjani Synthetics Ltd a good quality company?
Anjani Synthetics Ltd is a quality company, based on a 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 Anjani Synthetics Ltd undervalued or overvalued?
Anjani Synthetics 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 5-year
Historic Median
Price to Earnings 12.19 13.36
Price to Book 0.46 0.61
Price to Sales 0.15 0.16
EV to EBITDA 7.04 8.66
Q.4 Is Anjani Synthetics Ltd a good buy now?
Anjani Synthetics 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Anjani Synthetics Ltd?
Anjani Synthetics Ltd revenue growth is -11.8% for FY-2025, which is below its 5-year CAGR of -7.28%, indicating slower growth.

Q.2 Gross Profit margin of Anjani Synthetics Ltd?
Anjani Synthetics Ltd Gross profit margin which is the profit after deduction of direct costs, is 3% for FY-2025, which is above its 5-year median of 2.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Anjani Synthetics Ltd?
Anjani Synthetics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.19% for FY-2025, which is above its 5-year median of 3.7% indicating increasing margins.

Q.4 Net Profit Margin of Anjani Synthetics Ltd?
Anjani Synthetics Ltd Net Profit Margin is 1.48% for FY-2025, is above its 5-year median of 1.31%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3 2.8
Operating Profit Margin (%) 4.19 3.7
Net Profit Margin (%) 1.48 1.31

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Anjani Synthetics Ltd?
Anjani Synthetics Ltd Return on Asset is 2.08%, which is above its 5-year historical median of 1.96%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Anjani Synthetics Ltd?
Anjani Synthetics Ltd Return on capital employed is 6.08% for FY-2025, which is below its 5-year historical median of 7.19%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Anjani Synthetics Ltd?
Anjani Synthetics Ltd Return on equity is 3.95% for FY-2025, which is below its 5-year historical median of 4.53%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Anjani Synthetics Ltd?
Anjani Synthetics Ltd Cash conversion cycle is 145 days, above its 5-year historical median of 125 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.44 1.48
ROE (%) 3.95 4.53
ROCE (%) 6.08 7.19
Cash Conversion Cycle 145 days 125 days

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

Q.9 Debt to Equity ratio of Anjani Synthetics Ltd?
Anjani Synthetics Ltd Debt-to-Equity ratio is 0.37, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Anjani Synthetics Ltd?
Anjani Synthetics Ltd Debt to cash flow from operations is 1.63, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Anjani Synthetics Ltd?

Q.1 Promoter shareholding and pledge status of Anjani Synthetics Ltd?
Promoters hold 74.90% of the Anjani Synthetics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Anjani Synthetics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Anjani Synthetics Ltd vs industry peers?
Anjani Synthetics Ltd revenue CAGR is -7.28%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -11.8 0
Gross Profit Growth (%) -5.6 9.1
Operating Profit Growth (%) -0.1 8.5
Net Profit Growth (%) -22.1 13
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.44 0.95
ROE (%) 3.95 4.25
ROCE (%) 6.08 7.55
Cash Conversion Cycle (days) 145.25 102

Valuation & price assessment

Q.1 Stock return of Anjani Synthetics Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 2.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
2.9% 2.5% 0.1% -37.2%
Q.2 Valuation ratios of Anjani Synthetics Ltd vs historical?
The current P/E ratio of 12.19 is lower than its historical median of 13.36, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 12.19 13.36 20.16
Price to Book 0.46 0.61 1.32
Price to Sales 0.15 0.16 1.06
EV to EBITDA 7.04 8.66 9.31

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