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Check Before You Invest : PBM Polytex Ltd

BSE: 514087 NSE: ISIN: INE501F01018
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does PBM Polytex Ltd belong to?
PBM Polytex Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is PBM Polytex Ltd a good quality company?
PBM Polytex 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 PBM Polytex Ltd undervalued or overvalued?
PBM Polytex 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 0.53
Price to Sales 0.23 0.33
EV to EBITDA 14.65 2.49
Q.4 Is PBM Polytex Ltd a good buy now?
PBM Polytex 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 PBM Polytex Ltd?
PBM Polytex Ltd revenue growth is -8% for FY-2025, which is below its 5-year CAGR of 0.62%, indicating slower growth.

Q.2 Gross Profit margin of PBM Polytex Ltd?
PBM Polytex Ltd Gross profit margin which is the profit after deduction of direct costs, is -1.5% for FY-2025, which is below its 5-year median of 2%, indicating decreasing margins.

Q.3 Operating Profit Margin of PBM Polytex Ltd?
PBM Polytex Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -2.13% for FY-2025, which is below its 5-year median of 0.98% indicating decreasing margins.

Q.4 Net Profit Margin of PBM Polytex Ltd?
PBM Polytex Ltd Net Profit Margin is -2.65% for FY-2025, is below its 5-year median of 0.15%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -1.5 2
Operating Profit Margin (%) -2.13 0.98
Net Profit Margin (%) -2.65 0.15

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of PBM Polytex Ltd?
PBM Polytex Ltd Return on Asset is -3.35%, which is below its 5-year historical median of 0.19%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of PBM Polytex Ltd?
PBM Polytex Ltd Return on capital employed is -4.89% for FY-2025, which is below its 5-year historical median of 0.89%. 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 PBM Polytex Ltd?
PBM Polytex Ltd Return on equity is -3.95% for FY-2025, which is below its 5-year historical median of 0.23%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of PBM Polytex Ltd?
PBM Polytex Ltd Cash conversion cycle is 126 days, above its 5-year historical median of 113 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.26 1.3
ROE (%) -3.95 0.23
ROCE (%) -4.89 0.89
Cash Conversion Cycle 126 days 113 days

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

Q.9 Debt to Equity ratio of PBM Polytex Ltd?
PBM Polytex Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.36, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of PBM Polytex Ltd?
PBM Polytex Ltd Debt to cash flow from operations is -0.03, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of PBM Polytex Ltd?

Q.1 Promoter shareholding and pledge status of PBM Polytex Ltd?
Promoters hold 68.24% of the PBM Polytex Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does PBM Polytex Ltd performance compare with that of its Peers?

Q.1 Revenue growth of PBM Polytex Ltd vs industry peers?
PBM Polytex Ltd revenue CAGR is 0.62%, 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 (%) -8 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) 1.26 0.94
ROE (%) -3.95 -
ROCE (%) -4.89 6.13
Cash Conversion Cycle (days) 125.74 61

Valuation & price assessment

Q.1 Stock return of PBM Polytex Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -2.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-2.3% -0.8% -11.7% -26.5%
Q.2 Valuation ratios of PBM Polytex 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 0.53 0.72
Price to Sales 0.23 0.33 0.40
EV to EBITDA 14.65 2.49 7.20

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