Check Before You Invest : Sanathan Textiles Ltd

Q: Which industry/sub-sector does Sanathan Textiles Ltd belong to?

Sanathan Textiles Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.

Q: Is Sanathan Textiles Ltd a good quality company?

Sanathan Textiles Ltd is a good quality company, based on a consistently good 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: Is Sanathan Textiles Ltd undervalued or overvalued?

Sanathan 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. Price to Earnings, Current: 18.1, Historic Median: -. Price to Book, Current: 1.71, Historic Median: -. Price to Sales, Current: 1.14, Historic Median: -. EV to EBITDA, Current: 11.29, Historic Median: -

Q: Is Sanathan Textiles Ltd a good buy now?

Sanathan Textiles 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

Q: Revenue growth of Sanathan Textiles Ltd?

Sanathan Textiles Ltd revenue growth is 1.3% for FY-2025, which is below its 5-year CAGR of 7.2%, indicating slower growth.

Q: Gross Profit margin of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.2% for FY-2025, which is in line with its 5-year median of 9.2%, indicating stable margins.

Q: Operating Profit Margin of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.08% for FY-2025, which is in line with its 5-year median of 9.08% indicating stable margins.

Q: Net Profit Margin of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Net Profit Margin is 5.82% for FY-2025, is in line with its 5-year median of 5.82%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 9.2, Historic Median: 9.2. Operating Profit Margin (%), Current: 9.08, Historic Median: 9.08. Net Profit Margin (%), Current: 5.82, Historic Median: 5.82

Q: Return on Asset of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Return on Asset is 7.79%, which is below its 5-year historical median of 8.44%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Return on capital employed is 14.78% for FY-2025, which is below its 5-year historical median of 17.45%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Sanathan Textiles Ltd

Snapshot

Q.1 Which industry/sub-sector does Sanathan Textiles Ltd belong to?

Sanathan Textiles Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.

Q.2 Is Sanathan Textiles Ltd a good quality company?

Sanathan Textiles Ltd is a good quality company, based on a consistently good 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 Sanathan Textiles Ltd undervalued or overvalued?

Sanathan 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	18.1	-
Price to Book	1.71	-
Price to Sales	1.14	-
EV to EBITDA	11.29	-

Q.4 Is Sanathan Textiles Ltd a good buy now?

Sanathan Textiles 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

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 Sanathan Textiles Ltd?

Sanathan Textiles Ltd revenue growth is 1.3% for FY-2025, which is below its 5-year CAGR of 7.2%, indicating slower growth.

Q.2 Gross Profit margin of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.2% for FY-2025, which is in line with its 5-year median of 9.2%, indicating stable margins.

Q.3 Operating Profit Margin of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.08% for FY-2025, which is in line with its 5-year median of 9.08% indicating stable margins.

Q.4 Net Profit Margin of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Net Profit Margin is 5.82% for FY-2025, is in line with its 5-year median of 5.82%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	9.2	9.2
Operating Profit Margin (%)	9.08	9.08
Net Profit Margin (%)	5.82	5.82

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Return on Asset is 7.79%, which is below its 5-year historical median of 8.44%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Return on capital employed is 14.78% for FY-2025, which is below its 5-year historical median of 17.45%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Return on equity is 11.2% for FY-2025, which is below its 5-year historical median of 14.68%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Cash conversion cycle is 10 days, below its 5-year historical median of 13 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 (x)	1.35	1.51
ROE (%)	11.2	14.68
ROCE (%)	14.78	17.45
Cash Conversion Cycle	10 days	13 days

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

Q.9 Debt to Equity ratio of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Debt-to-Equity ratio is 0.07, 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 Sanathan Textiles Ltd?

Sanathan Textiles Ltd Debt to cash flow from operations is 0.65, which is at a healthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Sanathan Textiles Ltd?

Promoters hold 78.58% of the Sanathan Textiles Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Sanathan Textiles Ltd vs industry peers?

Sanathan Textiles Ltd revenue CAGR is 7.20%, 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 (%)	1.3	1.5
Gross Profit Growth (%)	18.9	1.8
Operating Profit Growth (%)	16.2	-1.5
Net Profit Growth (%)	23.4	2.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.35	0.94
ROE (%)	11.2	-
ROCE (%)	14.78	6.13
Cash Conversion Cycle (days)	10.33	61

Valuation & price assessment

Q.1 Stock return of Sanathan Textiles Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -7.25% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-7.3%

Q.2 Valuation ratios of Sanathan Textiles Ltd vs historical?

The current P/E ratio of 18.1 is higher than its historical median of , indicating that the stock is trading above 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	18.1	-	9.43
Price to Book	1.71	-	0.72
Price to Sales	1.14	-	0.40
EV to EBITDA	11.29	-	7.20

Check more companies

1. Trident

5. Sumeet Inds

7. Jaybharat Textiles

8. Ambika Cotton Mills

9. Nahar Spinning Mills

10. GHCL Textiles

Check trending companies

1. Natco Pharma Ltd.

2. Birlasoft Ltd.

3. Godrej Consumer Products Ltd.

4. Aditya Birla Sun Life AMC Ltd.

5. United Breweries Ltd.

Check Before You Invest : Sanathan Textiles Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.