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Check Before You Invest : Cedaar Textile Ltd

BSE: 0 NSE: CEDAAR ISIN: INE11J101017
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Cedaar Textile Ltd belong to?
Cedaar Textile Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Cedaar Textile Ltd a good quality company?
Cedaar Textile 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 Cedaar Textile Ltd undervalued or overvalued?
Cedaar Textile 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 3.78 7.02
Price to Book 0.36 1.19
Price to Sales 0.22 0.41
EV to EBITDA 4.65 5.84
Q.4 Is Cedaar Textile Ltd a good buy now?
Cedaar Textile 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 Cedaar Textile Ltd?
Cedaar Textile Ltd revenue growth is 9.8% for FY-2025, which is above its 3-year CAGR of -1.48%, indicating faster growth.

Q.2 Gross Profit margin of Cedaar Textile Ltd?
Cedaar Textile Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.8% for FY-2025, which is in line with its 3-year median of 9.8%, indicating stable margins.

Q.3 Operating Profit Margin of Cedaar Textile Ltd?
Cedaar Textile Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.45% for FY-2025, which is in line with its 3-year median of 15.45% indicating stable margins.

Q.4 Net Profit Margin of Cedaar Textile Ltd?
Cedaar Textile Ltd Net Profit Margin is 5.79% for FY-2025, is in line with its 3-year median of 5.79%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 9.8 9.8
Operating Profit Margin (%) 15.45 15.45
Net Profit Margin (%) 5.79 5.79

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Cedaar Textile Ltd?
Cedaar Textile Ltd Return on Asset is 5.67%, which is in line with its 3-year historical median of 5.67%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Cedaar Textile Ltd?
Cedaar Textile Ltd Return on capital employed is 16.26% for FY-2025, which is in line with its 3-year historical median of 16.26%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Cedaar Textile Ltd?
Cedaar Textile Ltd Return on equity is 26.49% for FY-2025, which is below its 3-year historical median of 38.6%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Cedaar Textile Ltd?
Cedaar Textile Ltd Cash conversion cycle is 157 days, above its 3-year historical median of 129 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 0.98 0.98
ROE (%) 26.49 38.6
ROCE (%) 16.26 16.26
Cash Conversion Cycle 157 days 129 days

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

Q.9 Debt to Equity ratio of Cedaar Textile Ltd?
Cedaar Textile Ltd Debt-to-Equity ratio is 1.76, which is above the industry average of 0.42, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Cedaar Textile Ltd?
Cedaar Textile Ltd Debt to cash flow from operations is 6.71, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Cedaar Textile Ltd?

Q.1 Promoter shareholding and pledge status of Cedaar Textile Ltd?
Promoters hold 68.66% of the Cedaar Textile Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Cedaar Textile Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Cedaar Textile Ltd vs industry peers?
Cedaar Textile Ltd revenue CAGR is -1.48%, compared to the industry median CAGR of 1.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 9.8 1
Gross Profit Growth (%) 8.3 6.8
Operating Profit Growth (%) 4.6 6.1
Net Profit Growth (%) -0.5 10
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.98 0.97
ROE (%) 26.49 4.83
ROCE (%) 16.26 7.46
Cash Conversion Cycle (days) 156.85 101

Valuation & price assessment

Q.1 Stock return of Cedaar Textile 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 Cedaar Textile Ltd vs historical?
The current P/E ratio of 3.78 is lower than its historical median of 7.02, 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 3.78 7.02 21.85
Price to Book 0.36 1.19 1.39
Price to Sales 0.22 0.41 1.29
EV to EBITDA 4.65 5.84 10.21

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