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Check Before You Invest : Binayak Tex Processors Ltd

BSE: 523054 NSE: ISIN: INE626H01019
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Binayak Tex Processors Ltd belong to?
Binayak Tex Processors Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Binayak Tex Processors Ltd a good quality company?
Binayak Tex Processors Ltd is a weak quality company, based on a inconsistent 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 Binayak Tex Processors Ltd undervalued or overvalued?
Binayak Tex Processors 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 31.73 17.35
Price to Book 1.55 0.78
Price to Sales 0.62 0.27
EV to EBITDA 10.01 8.23
Q.4 Is Binayak Tex Processors Ltd a good buy now?
Binayak Tex Processors 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 Binayak Tex Processors Ltd?
Binayak Tex Processors Ltd revenue growth is 5.5% for FY-2025, which is above its 5-year CAGR of 3.87%, indicating faster growth.

Q.2 Gross Profit margin of Binayak Tex Processors Ltd?
Binayak Tex Processors Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.3% for FY-2025, which is in line with its 5-year median of 4.3%, indicating stable margins.

Q.3 Operating Profit Margin of Binayak Tex Processors Ltd?
Binayak Tex Processors Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.3% for FY-2025, which is above its 5-year median of 5.59% indicating increasing margins.

Q.4 Net Profit Margin of Binayak Tex Processors Ltd?
Binayak Tex Processors Ltd Net Profit Margin is 1.26% for FY-2025, is below its 5-year median of 2.02%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.3 4.3
Operating Profit Margin (%) 6.3 5.59
Net Profit Margin (%) 1.26 2.02

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Binayak Tex Processors Ltd?
Binayak Tex Processors Ltd Return on Asset is 1.32%, which is below its 5-year historical median of 2.71%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Binayak Tex Processors Ltd?
Binayak Tex Processors Ltd Return on capital employed is 7.02% for FY-2025, which is below its 5-year historical median of 7.57%. 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 Binayak Tex Processors Ltd?
Binayak Tex Processors Ltd Return on equity is 2.94% for FY-2025, which is below its 5-year historical median of 6.15%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Binayak Tex Processors Ltd?
Binayak Tex Processors Ltd Cash conversion cycle is 67 days, below its 5-year historical median of 71 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) 1.05 1.22
ROE (%) 2.94 6.15
ROCE (%) 7.02 7.57
Cash Conversion Cycle 67 days 71 days

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

Q.9 Debt to Equity ratio of Binayak Tex Processors Ltd?
Binayak Tex Processors Ltd Debt-to-Equity ratio is 0.54, which is above the industry average of 0.42, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Binayak Tex Processors Ltd?
Binayak Tex Processors Ltd Debt to cash flow from operations is 3.58, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Binayak Tex Processors Ltd?

Q.1 Promoter shareholding and pledge status of Binayak Tex Processors Ltd?
Promoters hold 59.10% of the Binayak Tex Processors Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Binayak Tex Processors Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Binayak Tex Processors Ltd vs industry peers?
Binayak Tex Processors Ltd revenue CAGR is 3.87%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 5.5 0
Gross Profit Growth (%) -25 9.1
Operating Profit Growth (%) -6.7 8.5
Net Profit Growth (%) -50 13
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.05 0.95
ROE (%) 2.94 4.25
ROCE (%) 7.02 7.55
Cash Conversion Cycle (days) 66.55 102

Valuation & price assessment

Q.1 Stock return of Binayak Tex Processors Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 22.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
22.7% 32.2% 37% 19.9%
Q.2 Valuation ratios of Binayak Tex Processors Ltd vs historical?
The current P/E ratio of 31.73 is higher than its historical median of 17.35, 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 31.73 17.35 20.16
Price to Book 1.55 0.78 1.32
Price to Sales 0.62 0.27 1.06
EV to EBITDA 10.01 8.23 9.31

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