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Check Before You Invest : Konark Synthetic Ltd

BSE: 514128 NSE: ISIN: INE517D01019
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Konark Synthetic Ltd belong to?
Konark Synthetic Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Konark Synthetic Ltd a good quality company?
Konark Synthetic Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Konark Synthetic Ltd undervalued or overvalued?
Konark Synthetic Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Konark Synthetic Ltd a good buy now?
Konark Synthetic 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 Konark Synthetic Ltd?
Konark Synthetic Ltd revenue growth is 7.2% for FY-2025 , which is above its 5 year CAGR of -8.1% , indicating faster growth.
Q.2 Gross Profit margin of Konark Synthetic Ltd?
Konark Synthetic Ltd Gross profit margin which is the profit after deduction of direct costs, is -0.5% for FY-2025 , which is below its 5 year median of 2.4% , indicating decreasing margins.
Q.3 Operating Profit Margin of Konark Synthetic Ltd?
Konark Synthetic Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.8% for FY-2025 , which is in line with its 5 year median of 6.8% indicating stable margins.
Q.4 Net Profit Margin of Konark Synthetic Ltd?
Konark Synthetic Ltd Net Profit Margin is -17.93% for FY-2025 , is below with its 5 year median of -1.12%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -0.5 2.4
Operating Profit Margin 6.8 6.8
Net Profit Margin -17.93 -1.12
Q.5 Return on Asset of Konark Synthetic Ltd?
Konark Synthetic Ltd Return on Asset is -18.1(x), which is below its 5 year historical median of -0.78(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Konark Synthetic Ltd?
Konark Synthetic Ltd Return on equity is -537.51% for FY-2025 , which is below its historical median of -3.77%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Konark Synthetic Ltd?
Konark Synthetic Ltd Return on capital employed is -16.74% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Konark Synthetic Ltd?
Konark Synthetic Ltd Cash conversion cycle is 168 , above its historical median of 168 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.01 0.95
ROE -537.51 -3.77
ROCE -16.74 5.06
Cash Conversion Cycle 168 168
Q.9 Debt to Equity ratio of Konark Synthetic Ltd?
Konark Synthetic Ltd Debt-to-Equity ratio is 1499.21 , which is above with the industry average of 0.42 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Konark Synthetic Ltd?
Konark Synthetic Ltd Debt to cash flow from operations is 17.5 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Konark Synthetic Ltd?
Promoters hold 74.99% of the Konark Synthetic Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Konark Synthetic Ltd vs industry peers?
Konark Synthetic Ltd revenue CAGR is -8.10% , compared to the industry median CAGR of 0.00% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 46.7 96.6
Gross Profit -0.2 3.2
Operating Profit 3.2 5.7
Net Profit -8.4 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.01 0.95
ROE -537.51 4.25
ROCE -16.74 7.55
Cash Conversion Cycle 167.89 102

Valuation & price assessment

Q.1 Stock return of Konark Synthetic Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 7.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7.9% 38.3% 45.5% 61.6%
Q.3 Valuation ratios of Konark Synthetic 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 125.38 0.59 1.39
Price to Sales 0.46 0.16 1.01
EV to EBITDA 51.91 7.49 9.47

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