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Check Before You Invest : Kitex Garments Ltd

BSE: 521248 NSE: KITEX ISIN: INE602G01020
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Kitex Garments Ltd belong to?
Kitex Garments Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Kitex Garments Ltd a good quality company?
Kitex Garments Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Kitex Garments Ltd undervalued or overvalued?
Kitex Garments Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Kitex Garments Ltd a good buy now?
Kitex Garments Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Kitex Garments Ltd?
Kitex Garments Ltd revenue growth is 59.3% for FY-2025 , which is above its 5 year CAGR of 5.9% , indicating faster growth.
Q.2 Gross Profit margin of Kitex Garments Ltd?
Kitex Garments Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.6% for FY-2025 , which is in line with its 5 year median of 22.6% , indicating stable margins.
Q.3 Operating Profit Margin of Kitex Garments Ltd?
Kitex Garments Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.34% for FY-2025 , which is in line with its 5 year median of 20.34% indicating stable margins.
Q.4 Net Profit Margin of Kitex Garments Ltd?
Kitex Garments Ltd Net Profit Margin is 15.56% for FY-2025 , is above with its 5 year median of 13.15%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 22.6 22.6
Operating Profit Margin 20.34 20.34
Net Profit Margin 15.56 13.15
Q.5 Return on Asset of Kitex Garments Ltd?
Kitex Garments Ltd Return on Asset is 11.82(x), which is above its 5 year historical median of 6.54(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Kitex Garments Ltd?
Kitex Garments Ltd Return on equity is 14.79% for FY-2025 , which is above its historical median of 8.49%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Kitex Garments Ltd?
Kitex Garments Ltd Return on capital employed is 19.13% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Kitex Garments Ltd?
Kitex Garments Ltd Cash conversion cycle is 145 , below its historical median of 185 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.76 0.56
ROE 14.79 8.49
ROCE 19.13 11.6
Cash Conversion Cycle 145 185
Q.9 Debt to Equity ratio of Kitex Garments Ltd?
Kitex Garments Ltd Debt-to-Equity ratio is 0.15 , 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 Kitex Garments Ltd?
Kitex Garments Ltd Debt to cash flow from operations is 2.08 , which is at a moderate level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kitex Garments Ltd?
Promoters hold 56.66% of the Kitex Garments Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kitex Garments Ltd vs industry peers?
Kitex Garments Ltd revenue CAGR is 5.86% , compared to the industry median CAGR of 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 982.8 96.6
Gross Profit 222.2 3.2
Operating Profit 200 5.7
Net Profit 153 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.76 0.95
ROE 14.79 4.25
ROCE 19.13 7.55
Cash Conversion Cycle 145.35 102

Valuation & price assessment

Q.1 Stock return of Kitex Garments Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 4.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 4.7% 38.4% 49.7% -24.2%
Q.3 Valuation ratios of Kitex Garments Ltd vs historical?
The current P/E is higher 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 38.99 6.78 30.76
Price to Book 2.96 1.07 1.39
Price to Sales 4.34 1.08 1.01
EV to EBITDA 26.32 4.21 9.47

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