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Check Before You Invest : Swadeshi Polytex Ltd

BSE: 503816 NSE: ISIN: INE243N01029
  |   Sector:  Miscellaneous   |   Industry:  Business Support

Snapshot

Q.1 Which industry/sub-sector does Swadeshi Polytex Ltd belong to?
Swadeshi Polytex Ltd belongs to the Miscellaneous sector, operating specifically within the Business Support segment.
Q.2 Is Swadeshi Polytex Ltd a good quality company?
Swadeshi Polytex Ltd is a average quality company, based on a somewhat consistent 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 Swadeshi Polytex Ltd undervalued or overvalued?
Swadeshi 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 49.02 5.44
Price to Book 1.21 3.29
Price to Sales 1209.68 4.44
EV to EBITDA 24.54 3.65
Q.4 Is Swadeshi Polytex Ltd a good buy now?
Swadeshi 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 Swadeshi Polytex Ltd?
Swadeshi Polytex Ltd revenue growth is -99.6% for FY-2025, which is below its 5-year CAGR of -52.18%, indicating slower growth.

Q.2 Gross Profit margin of Swadeshi Polytex Ltd?
Swadeshi Polytex Ltd Gross profit margin which is the profit after deduction of direct costs, is 901.2% for FY-2025, which is above its 5-year median of 97.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Swadeshi Polytex Ltd?
Swadeshi Polytex Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -876.18% for FY-2025, which is below its 5-year median of 92% indicating decreasing margins.

Q.4 Net Profit Margin of Swadeshi Polytex Ltd?
Swadeshi Polytex Ltd Net Profit Margin is 565.15% for FY-2025, is above its 5-year median of 78.65%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 901.2 97.6
Operating Profit Margin (%) -876.18 92
Net Profit Margin (%) 565.15 78.65

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Swadeshi Polytex Ltd?
Swadeshi Polytex Ltd Return on Asset is 1.84%, which is below its 5-year historical median of 71.12%, indicating deteriorated asset utilization efficiency.

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

Q.6 Debt to Equity ratio of Swadeshi Polytex Ltd?
Swadeshi Polytex Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.7 Debt to cash flow from operations of Swadeshi Polytex Ltd?
Swadeshi Polytex Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Swadeshi Polytex Ltd?
Promoters hold 72.05% of the Swadeshi Polytex Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Swadeshi Polytex Ltd vs industry peers?
Swadeshi Polytex Ltd revenue CAGR is -52.18%, compared to the industry median CAGR of 0.18%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -99.6 0.2
Gross Profit Growth (%) -96 13.2
Operating Profit Growth (%) -104.4 14.9
Net Profit Growth (%) -97.6 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) - 0.31
ROE (%) - 4.3
ROCE (%) - 9.42
Cash Conversion Cycle (days) 1474.88 46

Valuation & price assessment

Q.1 Stock return of Swadeshi Polytex Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 32.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
32.6% 45.9% -1.6% -36.4%
Q.2 Valuation ratios of Swadeshi Polytex Ltd vs historical?
The current P/E ratio of 49.02 is higher than its historical median of 5.44, 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 49.02 5.44 26.13
Price to Book 1.21 3.29 2.37
Price to Sales 1209.68 4.44 5.96
EV to EBITDA 24.54 3.65 11.62

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