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INVESTMENT INSIGHTS

Check Before You Invest : HP Cotton Textile Mills Ltd

BSE: 502873 NSE: ISIN: INE950C01014
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does HP Cotton Textile Mills Ltd belong to?
HP Cotton Textile Mills Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is HP Cotton Textile Mills Ltd a good quality company?
HP Cotton Textile Mills Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is HP Cotton Textile Mills Ltd undervalued or overvalued?
HP Cotton Textile Mills Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is HP Cotton Textile Mills Ltd a good buy now?
HP Cotton Textile Mills 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 HP Cotton Textile Mills Ltd?
HP Cotton Textile Mills Ltd revenue growth is 37% for FY-2025 , which is above its 5 year CAGR of 9.4% , indicating faster growth.
Q.2 Gross Profit margin of HP Cotton Textile Mills Ltd?
HP Cotton Textile Mills Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.5% for FY-2025 , which is in line with its 5 year median of 5.5% , indicating stable margins.
Q.3 Operating Profit Margin of HP Cotton Textile Mills Ltd?
HP Cotton Textile Mills Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.74% for FY-2025 , which is above its 5 year median of 9.7% indicating increasing margins.
Q.4 Net Profit Margin of HP Cotton Textile Mills Ltd?
HP Cotton Textile Mills Ltd Net Profit Margin is 2.01% for FY-2025 , is in line with with its 5 year median of 2.01%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 5.5 5.5
Operating Profit Margin 9.74 9.7
Net Profit Margin 2.01 2.01
Q.5 Return on Asset of HP Cotton Textile Mills Ltd?
HP Cotton Textile Mills Ltd Return on Asset is 2.96(x), which is in line with its 5 year historical median of 2.96(x), indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of HP Cotton Textile Mills Ltd?
HP Cotton Textile Mills Ltd Return on equity is 17.15% for FY-2025 , which is in line with its historical median of 17.15%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of HP Cotton Textile Mills Ltd?
HP Cotton Textile Mills Ltd Return on capital employed is 20.9% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of HP Cotton Textile Mills Ltd?
HP Cotton Textile Mills Ltd Cash conversion cycle is 32 , below its historical median of 51 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.47 1.35
ROE 17.15 17.15
ROCE 20.9 20.9
Cash Conversion Cycle 32 51
Q.9 Debt to Equity ratio of HP Cotton Textile Mills Ltd?
HP Cotton Textile Mills Ltd Debt-to-Equity ratio is 2.21 , which is above with the industry average of 0.42 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of HP Cotton Textile Mills Ltd?
HP Cotton Textile Mills Ltd Debt to cash flow from operations is 4.85 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of HP Cotton Textile Mills Ltd?
Promoters hold 64.90% of the HP Cotton Textile Mills Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of HP Cotton Textile Mills Ltd vs industry peers?
HP Cotton Textile Mills Ltd revenue CAGR is 9.40% , compared to the industry median CAGR of 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 128.1 96.6
Gross Profit 7.1 3.2
Operating Profit 12.5 5.7
Net Profit 2.6 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.47 0.95
ROE 17.15 4.25
ROCE 20.9 7.55
Cash Conversion Cycle 32.08 102

Valuation & price assessment

Q.1 Stock return of HP Cotton Textile Mills Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 9% 18.5% 4.5% 16.9%
Q.3 Valuation ratios of HP Cotton Textile Mills Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 12.88 3.63 30.76
Price to Book 2.27 0.50 1.39
Price to Sales 0.3 0.12 1.01
EV to EBITDA 5 2.47 9.47

Check more companies

1. K.P.R. Mill
2. Vardhman Textiles
3. Welspun Living
4. Arvind
5. Swan Corp
6. Vedant Fashions
7. Pearl Global Inds.
8. Alok Inds
9. Garware Tech. Fibres
10. Gokaldas Exports
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