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Check Before You Invest : Eurotex Industries And Exports Ltd

BSE: 521014 NSE: EUROTEXIND ISIN: INE022C01012
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does Eurotex Industries And Exports Ltd belong to?
Eurotex Industries And Exports Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is Eurotex Industries And Exports Ltd a good quality company?
Eurotex Industries And Exports Ltd is a quality company, based on a 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 Eurotex Industries And Exports Ltd undervalued or overvalued?
Eurotex Industries And Exports 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 8.08 -
Price to Book -0.5 -0.46
Price to Sales 23.93 9.13
EV to EBITDA 12.56 -
Q.4 Is Eurotex Industries And Exports Ltd a good buy now?
Eurotex Industries And Exports 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 Eurotex Industries And Exports Ltd?
Eurotex Industries And Exports Ltd revenue growth is 84.1% for FY-2025, which is above its 5-year CAGR of -51.23%, indicating faster growth.

Q.2 Gross Profit margin of Eurotex Industries And Exports Ltd?
Eurotex Industries And Exports Ltd Gross profit margin which is the profit after deduction of direct costs, is -37.8% for FY-2025, which is in line with its 5-year median of -37.8%, indicating stable margins.

Q.3 Operating Profit Margin of Eurotex Industries And Exports Ltd?
Eurotex Industries And Exports Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -357.35% for FY-2025, which is below its 5-year median of -322.63% indicating decreasing margins.

Q.4 Net Profit Margin of Eurotex Industries And Exports Ltd?
Eurotex Industries And Exports Ltd Net Profit Margin is -150.65% for FY-2025, is in line with its 5-year median of -150.65%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -37.8 -37.8
Operating Profit Margin (%) -357.35 -322.63
Net Profit Margin (%) -150.65 -150.65

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Eurotex Industries And Exports Ltd?
Eurotex Industries And Exports Ltd Return on Asset is -4.96%, which is above its 5-year historical median of -15.99%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Eurotex Industries And Exports Ltd?
Eurotex Industries And Exports Ltd Return on capital employed is -5.73% for FY-2025, which is above its 5-year historical median of -29.69%. 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 Eurotex Industries And Exports Ltd?
Eurotex Industries And Exports Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -29.45%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Eurotex Industries And Exports Ltd?
Eurotex Industries And Exports Ltd Cash conversion cycle is 347 days, above its 5-year historical median of -7 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 (x) 0.03 0.05
ROE (%) - -29.45
ROCE (%) -5.73 -29.69
Cash Conversion Cycle 347 days -7 days

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

Q.9 Debt to Equity ratio of Eurotex Industries And Exports Ltd?
Eurotex Industries And Exports Ltd Debt-to-Equity ratio is -1.30, which is lower the industry average of 0.36, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Eurotex Industries And Exports Ltd?
Eurotex Industries And Exports Ltd Debt to cash flow from operations is -23.23, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Eurotex Industries And Exports Ltd?

Q.1 Promoter shareholding and pledge status of Eurotex Industries And Exports Ltd?
Promoters hold 70.99% of the Eurotex Industries And Exports Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Eurotex Industries And Exports Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Eurotex Industries And Exports Ltd vs industry peers?
Eurotex Industries And Exports Ltd revenue CAGR is -51.23%, compared to the industry median CAGR of 1.47%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 84.1 1.5
Gross Profit Growth (%) 0 1.8
Operating Profit Growth (%) 0 -1.5
Net Profit Growth (%) 0 2.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.03 0.94
ROE (%) - -
ROCE (%) -5.73 5.99
Cash Conversion Cycle (days) 347.07 61

Valuation & price assessment

Q.1 Stock return of Eurotex Industries And Exports Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -4.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-4.8% 19.8% 17.2% 31.9%
Q.2 Valuation ratios of Eurotex Industries And Exports Ltd vs historical?
The current P/E ratio of 8.08 is higher than its historical median of , 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 8.08 - 9.43
Price to Book -0.5 -0.46 0.72
Price to Sales 23.93 9.13 0.40
EV to EBITDA 12.56 - 7.20

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