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Check Before You Invest : Kakatiya Textiles Ltd

BSE: 521054 NSE: ISIN: INE092E01011
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does Kakatiya Textiles Ltd belong to?
Kakatiya Textiles Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is Kakatiya Textiles Ltd a good quality company?
Kakatiya 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 Kakatiya Textiles Ltd undervalued or overvalued?
Kakatiya 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 -0.34 -0.91
Price to Sales 0.13 0.91
EV to EBITDA -19.94 9.53
Q.4 Is Kakatiya Textiles Ltd a good buy now?
Kakatiya 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 Kakatiya Textiles Ltd?
Kakatiya Textiles Ltd revenue growth is 4,221.8% for FY-2025, which is below its 5-year CAGR of 6.85%, indicating slower growth.

Q.2 Gross Profit margin of Kakatiya Textiles Ltd?
Kakatiya Textiles Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.6% for FY-2025, which is in line with its 5-year median of 5.6%, indicating stable margins.

Q.3 Operating Profit Margin of Kakatiya Textiles Ltd?
Kakatiya Textiles Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.38% for FY-2025, which is in line with its 5-year median of 5.38% indicating stable margins.

Q.4 Net Profit Margin of Kakatiya Textiles Ltd?
Kakatiya Textiles Ltd Net Profit Margin is 3.96% for FY-2025, is in line with its 5-year median of 3.96%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5.6 5.6
Operating Profit Margin (%) 5.38 5.38
Net Profit Margin (%) 3.96 3.96

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Kakatiya Textiles Ltd?
Kakatiya Textiles Ltd Return on Asset is 4.45%, which is above its 5-year historical median of 2.73%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Kakatiya Textiles Ltd?
Kakatiya Textiles Ltd Return on capital employed is 19.11% for FY-2025, which is in line with its 5-year historical median of 19.11%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Cash conversion cycle of Kakatiya Textiles Ltd?
Kakatiya Textiles Ltd Cash conversion cycle is 29 days, below its 5-year historical median of 71 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

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

Q.8 Debt to Equity ratio of Kakatiya Textiles Ltd?
Kakatiya Textiles Ltd Debt-to-Equity ratio is -1.58, 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 Kakatiya Textiles Ltd?
Kakatiya Textiles Ltd Debt to cash flow from operations is 2.65, which is at a moderate level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Kakatiya Textiles Ltd?
Promoters hold 51.03% of the Kakatiya Textiles Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Kakatiya Textiles Ltd vs industry peers?
Kakatiya Textiles Ltd revenue CAGR is 6.85%, compared to the industry median CAGR of 1.47%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 4 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) 1.12 0.94
ROE (%) - -
ROCE (%) 19.11 6.13
Cash Conversion Cycle (days) 29.16 61

Valuation & price assessment

Q.1 Stock return of Kakatiya Textiles Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-2% 72.8% -37% -48.9%
Q.2 Valuation ratios of Kakatiya 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 -0.34 -0.91 0.72
Price to Sales 0.13 0.91 0.40
EV to EBITDA -19.94 9.53 7.20

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