Check Before You Invest : Dhanlaxmi Fabrics Ltd

BSE: 521151 NSE: ISIN: INE953D01016

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does Dhanlaxmi Fabrics Ltd belong to?

Dhanlaxmi Fabrics Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Dhanlaxmi Fabrics Ltd a good quality company?

Dhanlaxmi Fabrics Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Dhanlaxmi Fabrics Ltd undervalued or overvalued?

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

Q.4 Is Dhanlaxmi Fabrics Ltd a good buy now?

Dhanlaxmi Fabrics 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 Dhanlaxmi Fabrics Ltd?

Dhanlaxmi Fabrics Ltd revenue growth is -44.1% for FY-2025, which is below its 5-year CAGR of -34.6%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Dhanlaxmi Fabrics Ltd?

Dhanlaxmi Fabrics Ltd Return on capital employed is 2.21% for FY-2025, which is in line with its 5-year historical median of 2.21%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Dhanlaxmi Fabrics Ltd?

Dhanlaxmi Fabrics Ltd Return on Asset is 0.16%, which is below its 5-year historical median of 0.64%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Dhanlaxmi Fabrics Ltd?

Dhanlaxmi Fabrics Ltd Return on equity is 0.19% for FY-2025, which is below its 5-year historical median of 0.91%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Dhanlaxmi Fabrics Ltd?

Dhanlaxmi Fabrics Ltd Cash conversion cycle is 189 days, above its 5-year historical median of 154 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	0.17	0.59
ROE	0.19	0.91
ROCE	2.21	2.21
Cash Conversion Cycle	189 days	154 days

Q.6 Gross Profit margin of Dhanlaxmi Fabrics Ltd?

Dhanlaxmi Fabrics Ltd Gross profit margin which is the profit after deduction of direct costs, is -33.5% for FY-2025, which is below its 5-year median of 5%, indicating decreasing margins.

Q.7 Operating Profit Margin of Dhanlaxmi Fabrics Ltd?

Dhanlaxmi Fabrics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -47.64% for FY-2025, which is below its 5-year median of 5.92% indicating decreasing margins.

Q.8 Net Profit Margin of Dhanlaxmi Fabrics Ltd?

Dhanlaxmi Fabrics Ltd Net Profit Margin is 0.94% for FY-2025, is in line with with its 5-year median of 0.92%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-33.5	5
Operating Profit Margin	-47.64	5.92
Net Profit Margin	0.94	0.92

Q.9 Debt to Equity ratio of Dhanlaxmi Fabrics Ltd?

Dhanlaxmi Fabrics Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.5, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Dhanlaxmi Fabrics Ltd?

Dhanlaxmi Fabrics Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Dhanlaxmi Fabrics Ltd?

Promoters hold 74.91% of the Dhanlaxmi Fabrics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Dhanlaxmi Fabrics Ltd vs industry peers?

Dhanlaxmi Fabrics Ltd revenue CAGR is -34.60%, compared to the industry median CAGR of 4.23%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-44.1	4.2
Gross Profit Growth	0	8.6
Operating Profit Growth	0	7.5
Net Profit Growth	0	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.17	0.98
ROE	0.19	6.1
ROCE	2.21	7.6
Cash Conversion Cycle (days)	189.29	109

Valuation & price assessment

Q.1 Stock return of Dhanlaxmi Fabrics Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 1.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	1.5%	22.7%	8.8%	-19.1%

Q.3 Valuation ratios of Dhanlaxmi Fabrics 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	-	41.17	19.97
Price to Book	0.98	0.98	1.32
Price to Sales	2.77	0.90	1.06
EV to EBITDA	-17.21	-12.71	9.32

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