Check Before You Invest : Acknit Industries Ltd

BSE: 530043 NSE: ISIN: INE326C01017

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does Acknit Industries Ltd belong to?

Acknit Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Acknit Industries Ltd a good quality company?

Acknit Industries Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Acknit Industries Ltd undervalued or overvalued?

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

Q.4 Is Acknit Industries Ltd a good buy now?

Acknit Industries 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 Acknit Industries Ltd?

Acknit Industries Ltd revenue growth is 8.9% for FY-2025, which is above its 5-year CAGR of 7.18%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Acknit Industries Ltd?

Acknit Industries Ltd Return on capital employed is 10.8% for FY-2025, which is below its 5-year historical median of 11.61%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Acknit Industries Ltd?

Acknit Industries Ltd Return on Asset is 5.52%, which is below its 5-year historical median of 5.94%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Acknit Industries Ltd?

Acknit Industries Ltd Return on equity is 10.83% for FY-2025, which is below its 5-year historical median of 11.46%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Acknit Industries Ltd?

Acknit Industries Ltd Cash conversion cycle is 143 days, above its 5-year historical median of 118 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	1.48	1.53
ROE	10.83	11.46
ROCE	10.8	11.61
Cash Conversion Cycle	143 days	118 days

Q.6 Gross Profit margin of Acknit Industries Ltd?

Acknit Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.4% for FY-2025, which is in line with its 5-year median of 6.5%, indicating stable margins.

Q.7 Operating Profit Margin of Acknit Industries Ltd?

Acknit Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.55% for FY-2025, which is in line with its 5-year median of 7.78% indicating stable margins.

Q.8 Net Profit Margin of Acknit Industries Ltd?

Acknit Industries Ltd Net Profit Margin is 3.74% for FY-2025, is in line with with its 5-year median of 3.74%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.4	6.5
Operating Profit Margin	7.55	7.78
Net Profit Margin	3.74	3.74

Q.9 Debt to Equity ratio of Acknit Industries Ltd?

Acknit Industries Ltd Debt-to-Equity ratio is 0.67, which is above with the industry average of 0.5, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Acknit Industries Ltd?

Acknit Industries Ltd Debt to cash flow from operations is 5.83, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Acknit Industries Ltd?

Promoters hold 54.13% of the Acknit Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Acknit Industries Ltd vs industry peers?

Acknit Industries Ltd revenue CAGR is 7.18%, compared to the industry median CAGR of 4.23%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	8.9	4.2
Gross Profit Growth	4.8	8.6
Operating Profit Growth	5.3	7.5
Net Profit Growth	5.3	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.48	0.98
ROE	10.83	6.1
ROCE	10.8	7.6
Cash Conversion Cycle (days)	143.11	109

Valuation & price assessment

Q.1 Stock return of Acknit Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 12.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	12.5%	25.9%	28.3%	33.2%

Q.3 Valuation ratios of Acknit Industries Ltd vs historical?

The current P/E is higher 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	12.19	8.07	19.97
Price to Book	1.03	0.86	1.32
Price to Sales	0.39	0.30	1.06
EV to EBITDA	8.45	6.32	9.32

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