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Check Before You Invest : Jet Knitwears Ltd

BSE: 0 NSE: JETKNIT ISIN: INE564T01017
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Jet Knitwears Ltd belong to?
Jet Knitwears Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Jet Knitwears Ltd a good quality company?
Jet Knitwears 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 Jet Knitwears Ltd undervalued or overvalued?
Jet Knitwears 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 115.62 47.91
Price to Book 1.72 2.10
Price to Sales 1.4 1.40
EV to EBITDA 23.72 20.67
Q.4 Is Jet Knitwears Ltd a good buy now?
Jet Knitwears 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 Jet Knitwears Ltd?
Jet Knitwears Ltd revenue growth is -14% for FY-2025, which is below its 5-year CAGR of -8.91%, indicating slower growth.

Q.2 Gross Profit margin of Jet Knitwears Ltd?
Jet Knitwears Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.5% for FY-2025, which is below its 5-year median of 5.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Jet Knitwears Ltd?
Jet Knitwears Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.53% for FY-2025, which is below its 5-year median of 8.01% indicating decreasing margins.

Q.4 Net Profit Margin of Jet Knitwears Ltd?
Jet Knitwears Ltd Net Profit Margin is 1.21% for FY-2025, is below its 5-year median of 2.81%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.5 5.3
Operating Profit Margin (%) 7.53 8.01
Net Profit Margin (%) 1.21 2.81

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Jet Knitwears Ltd?
Jet Knitwears Ltd Return on Asset is 0.86%, which is below its 5-year historical median of 2.93%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Jet Knitwears Ltd?
Jet Knitwears Ltd Return on capital employed is 4.85% for FY-2025, which is below its 5-year historical median of 7.92%. 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 Jet Knitwears Ltd?
Jet Knitwears Ltd Return on equity is 1.5% for FY-2025, which is below its 5-year historical median of 5.68%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Jet Knitwears Ltd?
Jet Knitwears Ltd Cash conversion cycle is 411 days, above its 5-year historical median of 292 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) 0.71 0.9
ROE (%) 1.5 5.68
ROCE (%) 4.85 7.92
Cash Conversion Cycle 411 days 292 days

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

Q.9 Debt to Equity ratio of Jet Knitwears Ltd?
Jet Knitwears Ltd Debt-to-Equity ratio is 0.57, 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 Jet Knitwears Ltd?
Jet Knitwears Ltd Debt to cash flow from operations is 209.18, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Jet Knitwears Ltd?

Q.1 Promoter shareholding and pledge status of Jet Knitwears Ltd?
Promoters hold 68.21% of the Jet Knitwears Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Jet Knitwears Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Jet Knitwears Ltd vs industry peers?
Jet Knitwears Ltd revenue CAGR is -8.91%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -14 0
Gross Profit Growth (%) -16.1 9.1
Operating Profit Growth (%) -5.4 8.5
Net Profit Growth (%) -38.2 13
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.71 0.95
ROE (%) 1.5 4.25
ROCE (%) 4.85 7.55
Cash Conversion Cycle (days) 411.19 102

Valuation & price assessment

Q.1 Stock return of Jet Knitwears Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 35.06% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 35.1% 8.5% -18.9%
Q.2 Valuation ratios of Jet Knitwears Ltd vs historical?
The current P/E ratio of 115.62 is higher than its historical median of 47.91, 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 115.62 47.91 20.16
Price to Book 1.72 2.10 1.32
Price to Sales 1.4 1.40 1.06
EV to EBITDA 23.72 20.67 9.31

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