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Check Before You Invest : Gokak Textiles Ltd

BSE: 532957 NSE: ISIN: INE642I01014
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Gokak Textiles Ltd belong to?
Gokak Textiles Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Gokak Textiles Ltd a good quality company?
Gokak Textiles Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Gokak Textiles Ltd undervalued or overvalued?
Gokak Textiles Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Gokak Textiles Ltd a good buy now?
Gokak Textiles 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

Q.1 Revenue growth of Gokak Textiles Ltd?
Gokak Textiles Ltd revenue growth is -29.6% for FY-2025 , which is below its 5 year CAGR of -1.8% , indicating slower growth.
Q.2 Gross Profit margin of Gokak Textiles Ltd?
Gokak Textiles Ltd Gross profit margin which is the profit after deduction of direct costs, is -16.4% for FY-2025 , which is in line with its 5 year median of -16.4% , indicating stable margins.
Q.3 Operating Profit Margin of Gokak Textiles Ltd?
Gokak Textiles Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.58% for FY-2025 , which is above its 5 year median of 7.05% indicating increasing margins.
Q.4 Net Profit Margin of Gokak Textiles Ltd?
Gokak Textiles Ltd Net Profit Margin is -51.03% for FY-2025 , is below with its 5 year median of -29.29%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -16.4 -16.4
Operating Profit Margin 7.58 7.05
Net Profit Margin -51.03 -29.29
Q.5 Return on Asset of Gokak Textiles Ltd?
Gokak Textiles Ltd Return on Asset is -12.9%, which is above its 5 year historical median of -14.51%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Gokak Textiles Ltd?
Gokak Textiles Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Gokak Textiles Ltd?
Gokak Textiles Ltd Return on capital employed is -5.63% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Gokak Textiles Ltd?
Gokak Textiles Ltd Cash conversion cycle is 9 days, above its historical median of -2 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.25 0.5
ROE - -
ROCE -5.63 -5.63
Cash Conversion Cycle 9 days -2 days
Q.9 Debt to Equity ratio of Gokak Textiles Ltd?
Gokak Textiles Ltd Debt-to-Equity ratio is -2.78 , which is lower with the industry average of 0.42 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Gokak Textiles Ltd?
Gokak Textiles Ltd Debt to cash flow from operations is 12.7 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Gokak Textiles Ltd?
Promoters hold 73.56% of the Gokak Textiles Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Gokak Textiles Ltd vs industry peers?
Gokak Textiles Ltd revenue CAGR is -1.79% , compared to the industry median CAGR of 0.00% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 89.8 96.6
Gross Profit -14.7 3.2
Operating Profit 6.8 5.7
Net Profit -45.8 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.25 0.95
ROE - 4.25
ROCE -5.63 7.55
Cash Conversion Cycle (days) 8.52 102

Valuation & price assessment

Q.1 Stock return of Gokak Textiles Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 3.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 3.8% 25.4% 42.6% -19%
Q.3 Valuation ratios of Gokak Textiles Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 30.76
Price to Book -0.22 0.00 1.39
Price to Sales 0.63 0.14 1.01
EV to EBITDA 42.64 0.00 9.47

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