Check Before You Invest : Oswal Yarns Ltd

BSE: 514460 NSE: ISIN: INE670H01017

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does Oswal Yarns Ltd belong to?

Oswal Yarns Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Oswal Yarns Ltd a good quality company?

Oswal Yarns Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Oswal Yarns Ltd undervalued or overvalued?

Oswal Yarns Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Oswal Yarns Ltd a good buy now?

Oswal Yarns 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 Oswal Yarns Ltd?

Oswal Yarns Ltd revenue growth is 2.1% for FY-2025, which is above its 5-year CAGR of -8.87%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Oswal Yarns Ltd?

Oswal Yarns Ltd Return on capital employed is -3.15% for FY-2025, which is below its 5-year historical median of -1.54%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Oswal Yarns Ltd?

Oswal Yarns Ltd Return on Asset is -3.19%, which is below its 5-year historical median of -1.45%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Oswal Yarns Ltd?

Oswal Yarns Ltd Return on equity is -3.81% for FY-2025, which is below its 5-year historical median of -1.69%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Oswal Yarns Ltd?

Oswal Yarns Ltd Cash conversion cycle is 392 days, below its 5-year historical median of 508 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.53	0.5
ROE	-3.81	-1.69
ROCE	-3.15	-1.54
Cash Conversion Cycle	392 days	508 days

Q.6 Gross Profit margin of Oswal Yarns Ltd?

Oswal Yarns Ltd Gross profit margin which is the profit after deduction of direct costs, is -5.4% for FY-2025, which is below its 5-year median of -1.4%, indicating decreasing margins.

Q.7 Operating Profit Margin of Oswal Yarns Ltd?

Oswal Yarns Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1.22% for FY-2025, which is in line with its 5-year median of -1.22% indicating stable margins.

Q.8 Net Profit Margin of Oswal Yarns Ltd?

Oswal Yarns Ltd Net Profit Margin is -6.06% for FY-2025, is below with its 5-year median of -2.89%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-5.4	-1.4
Operating Profit Margin	-1.22	-1.22
Net Profit Margin	-6.06	-2.89

Q.9 Debt to Equity ratio of Oswal Yarns Ltd?

Oswal Yarns Ltd Debt-to-Equity ratio is 0.16, which is lower with the industry average of 0.5, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Oswal Yarns Ltd?

Oswal Yarns Ltd Debt to cash flow from operations is 1.77, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Oswal Yarns Ltd?

Promoters hold 45.27% of the Oswal Yarns Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Oswal Yarns Ltd vs industry peers?

Oswal Yarns Ltd revenue CAGR is -8.87%, compared to the industry median CAGR of 4.23%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	2.1	4.2
Gross Profit Growth	0	8.6
Operating Profit Growth	0	7.3
Net Profit Growth	0	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.53	0.98
ROE	-3.81	6.1
ROCE	-3.15	7.6
Cash Conversion Cycle (days)	391.51	109

Valuation & price assessment

Q.1 Stock return of Oswal Yarns Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 24.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	24.3%	22.6%	25.6%	-64.4%

Q.3 Valuation ratios of Oswal Yarns Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	-	202.10	19.97
Price to Book	1.85	0.87	1.32
Price to Sales	3.26	1.91	1.06
EV to EBITDA	-62.31	-41.06	9.32

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