MoneyWorks4Me

Check Before You Invest : Ashutosh Fibre Ltd

BSE: 0 NSE: ASHUTOSH ISIN: INE19FR01012
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Ashutosh Fibre Ltd belong to?
Ashutosh Fibre Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Ashutosh Fibre Ltd a good quality company?
Ashutosh Fibre 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 Ashutosh Fibre Ltd undervalued or overvalued?
Ashutosh Fibre 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 3-year
Historic Median
Price to Earnings 20.63 20.63
Price to Book 5.7 5.70
Price to Sales 2.82 2.82
EV to EBITDA 12.16 12.16
Q.4 Is Ashutosh Fibre Ltd a good buy now?
Ashutosh Fibre 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 Ashutosh Fibre Ltd?
Ashutosh Fibre Ltd revenue growth is 2.9% for FY-2026, which is below its 3-year CAGR of 6.22%, indicating slower growth.

Q.2 Gross Profit margin of Ashutosh Fibre Ltd?
Ashutosh Fibre Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.5% for FY-2026, which is above its 3-year median of 12.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Ashutosh Fibre Ltd?
Ashutosh Fibre Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 26.51% for FY-2026, which is above its 3-year median of 15.64% indicating increasing margins.

Q.4 Net Profit Margin of Ashutosh Fibre Ltd?
Ashutosh Fibre Ltd Net Profit Margin is 13.67% for FY-2026, is above its 3-year median of 7.46%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 22.5 12.9
Operating Profit Margin (%) 26.51 15.64
Net Profit Margin (%) 13.67 7.46

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ashutosh Fibre Ltd?
Ashutosh Fibre Ltd Return on Asset is 14.81%, which is above its 3-year historical median of 10.57%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ashutosh Fibre Ltd?
Ashutosh Fibre Ltd Return on capital employed is 27.18% for FY-2026, which is above its 3-year historical median of 23.08%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Ashutosh Fibre Ltd?
Ashutosh Fibre Ltd Return on equity is 36.56% for FY-2026, which is above its 3-year historical median of 29.21%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Ashutosh Fibre Ltd?
Ashutosh Fibre Ltd Cash conversion cycle is 98 days, above its 3-year historical median of 84 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.08 1.28
ROE (%) 36.56 29.21
ROCE (%) 27.18 23.08
Cash Conversion Cycle 98 days 84 days

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

Q.9 Debt to Equity ratio of Ashutosh Fibre Ltd?
Ashutosh Fibre Ltd Debt-to-Equity ratio is 0.92, 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 Ashutosh Fibre Ltd?
Ashutosh Fibre Ltd Debt to cash flow from operations is 2.23, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Ashutosh Fibre Ltd?

Q.1 Promoter shareholding and pledge status of Ashutosh Fibre Ltd?
Promoters hold % of the Ashutosh Fibre Ltd, with % of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ashutosh Fibre Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ashutosh Fibre Ltd vs industry peers?
Ashutosh Fibre Ltd revenue CAGR is 6.22%, compared to the industry median CAGR of 1.09%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 2.9 1.1
Gross Profit Growth (%) 73.3 10.7
Operating Profit Growth (%) 72.2 8.5
Net Profit Growth (%) 77.8 10.8
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.08 0.99
ROE (%) 36.56 5.59
ROCE (%) 27.18 8.39
Cash Conversion Cycle (days) 97.76 103

Valuation & price assessment

Q.1 Stock return of Ashutosh Fibre Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Ashutosh Fibre Ltd vs historical?
The current P/E ratio of 20.63 is in line with than its historical median of 20.63, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 20.63 20.63 21.85
Price to Book 5.7 5.70 1.39
Price to Sales 2.82 2.82 1.29
EV to EBITDA 12.16 12.16 10.21

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