Check Before You Invest : United Textiles Ltd

Snapshot

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

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

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

United Textiles Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is United Textiles Ltd undervalued or overvalued?

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

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

United Textiles 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 United Textiles Ltd?

United Textiles Ltd revenue growth is -22.7% for FY-2025, which is below its 5-year CAGR of 2.9%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of United Textiles Ltd?

United Textiles Ltd Return on capital employed is 3.1% for FY-2025, which is above its 5-year historical median of 2.54%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of United Textiles Ltd?

United Textiles Ltd Return on Asset is 0.08%, which is in line with its 5-year historical median of 0.08%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of United Textiles Ltd?

United Textiles Ltd Return on equity is 0.19% for FY-2025, which is in line with its 5-year historical median of 0.19%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of United Textiles Ltd?

United Textiles Ltd Cash conversion cycle is 155 days, above its 5-year historical median of 88 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	0.43	0.7
ROE	0.19	0.19
ROCE	3.1	2.54
Cash Conversion Cycle	155 days	88 days

Q.6 Gross Profit margin of United Textiles Ltd?

United Textiles Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.8% for FY-2025, which is above its 5-year median of 7%, indicating increasing margins.

Q.7 Operating Profit Margin of United Textiles Ltd?

United Textiles Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.75% for FY-2025, which is above its 5-year median of 9.12% indicating increasing margins.

Q.8 Net Profit Margin of United Textiles Ltd?

United Textiles Ltd Net Profit Margin is 0.2% for FY-2025, is above with its 5-year median of 0.12%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11.8	7
Operating Profit Margin	17.75	9.12
Net Profit Margin	0.2	0.12

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

United Textiles Ltd Debt-to-Equity ratio is 0.94, which is above with the industry average of 0.4, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of United Textiles Ltd?

United Textiles Ltd Debt to cash flow from operations is 5.66, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 34.58% of the United Textiles Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

United Textiles Ltd revenue CAGR is 2.90%, 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	-22.7	2.2
Gross Profit Growth	-5.5	NAN
Operating Profit Growth	-2.7	-2.1
Net Profit Growth	100	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.43	1
ROE	0.19	3.73
ROCE	3.1	6.18
Cash Conversion Cycle (days)	154.74	72

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 16.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	16.4%	29.3%	9.8%	-8.3%

Q.3 Valuation ratios of United Textiles 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	-	163.26	9.40
Price to Book	0.5	0.43	0.72
Price to Sales	0.84	0.30	0.40
EV to EBITDA	13.45	8.06	7.20

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