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 10-year financial track record.

Q.3 Is Sanathan Textiles Ltd undervalued or overvalued?

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

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

Sanathan Textiles Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

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 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.3 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.4 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.5 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	1.35	1.51
ROE	11.2	14.68
ROCE	14.78	17.45
Cash Conversion Cycle	10 days	13 days

Q.6 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.7 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.8 Net Profit Margin of Sanathan Textiles Ltd?

Sanathan Textiles Ltd Net Profit Margin is 5.82% for FY-2025, is in line with 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

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

Sanathan Textiles Ltd Debt-to-Equity ratio is 0.07, which is lower with the industry average of 0.4, 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

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)

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 2.18%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.3	2.2
Gross Profit Growth	18.9	NAN
Operating Profit Growth	16.2	-2.1
Net Profit Growth	23.4	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.35	1
ROE	11.2	3.73
ROCE	14.78	6.18
Cash Conversion Cycle (days)	10.33	72

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 7.86% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	7.9%

Q.3 Valuation ratios of Sanathan Textiles Ltd vs historical?

The current P/E is similar 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	20.44	21.38	9.40
Price to Book	1.93	1.89	0.72
Price to Sales	1.26	1.23	0.40
EV to EBITDA	12.81	12.81	7.20

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