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Check Before You Invest : GTN Textiles Ltd

BSE: 532744 NSE: GTNTEX ISIN: INE302H01017
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does GTN Textiles Ltd belong to?
GTN Textiles Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is GTN Textiles Ltd a good quality company?
GTN Textiles 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 GTN Textiles Ltd undervalued or overvalued?
GTN Textiles 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 - -
Price to Book -0.36 -0.21
Price to Sales 1.69 0.18
EV to EBITDA -23.83 -23.55
Q.4 Is GTN Textiles Ltd a good buy now?
GTN 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

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 GTN Textiles Ltd?
GTN Textiles Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -100%, indicating faster growth.

Q.2 Gross Profit margin of GTN Textiles Ltd?
GTN Textiles Ltd Gross profit margin which is the profit after deduction of direct costs, is -33.2% for FY-2025, which is below its 5-year median of -13.8%, indicating decreasing margins.

Q.3 Operating Profit Margin of GTN Textiles Ltd?
GTN Textiles Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0% for FY-2025, which is above its 5-year median of -0.85% indicating increasing margins.

Q.4 Net Profit Margin of GTN Textiles Ltd?
GTN Textiles Ltd Net Profit Margin is -% for FY-2025, is above its 5-year median of -6.67%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -33.2 -13.8
Operating Profit Margin (%) - -0.85
Net Profit Margin (%) - -6.67

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of GTN Textiles Ltd?
GTN Textiles Ltd Return on Asset is -0.51%, which is above its 5-year historical median of -4.35%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of GTN Textiles Ltd?
GTN Textiles Ltd Return on capital employed is 0% for FY-2025, which is above its 5-year historical median of -4.78%. 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 GTN Textiles Ltd?
GTN Textiles Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -39.42%, indicating the business is making better use of its shareholders capital.

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

Q.8 Debt to Equity ratio of GTN Textiles Ltd?
GTN Textiles Ltd Debt-to-Equity ratio is -1.03, which is lower the industry average of 0.36, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of GTN Textiles Ltd?
GTN Textiles Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of GTN Textiles Ltd?

Q.1 Promoter shareholding and pledge status of GTN Textiles Ltd?
Promoters hold 63.36% of the GTN Textiles Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does GTN Textiles Ltd performance compare with that of its Peers?

Q.1 Revenue growth of GTN Textiles Ltd vs industry peers?
GTN Textiles Ltd revenue CAGR is -100.00%, compared to the industry median CAGR of 1.47%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 1.5
Gross Profit Growth (%) 0 1.8
Operating Profit Growth (%) 0 -1.5
Net Profit Growth (%) 0 2.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) - 0.94
ROE (%) - -
ROCE (%) - 6.13
Cash Conversion Cycle (days) - 61

Valuation & price assessment

Q.1 Stock return of GTN Textiles Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 10.94% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 10.9% -6.4% -1.6%
Q.2 Valuation ratios of GTN Textiles Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near 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 - - 9.43
Price to Book -0.36 -0.21 0.72
Price to Sales 1.69 0.18 0.40
EV to EBITDA -23.83 -23.55 7.20

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