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INVESTMENT INSIGHTS

Check Before You Invest : Karnika Industries Ltd

BSE: 0 NSE: KARNIKA ISIN: INE0MGA01012
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Karnika Industries Ltd belong to?
Karnika Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Karnika Industries Ltd a good quality company?
Karnika Industries Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Karnika Industries Ltd undervalued or overvalued?
Karnika Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Karnika Industries Ltd a good buy now?
Karnika Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Karnika Industries Ltd?
Karnika Industries Ltd revenue growth is 35.6% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of Karnika Industries Ltd?
Karnika Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.7% for FY-2025 , which is above its 5 year median of 11.3% , indicating increasing margins.
Q.3 Operating Profit Margin of Karnika Industries Ltd?
Karnika Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.13% for FY-2025 , which is above its 5 year median of 14.21% indicating increasing margins.
Q.4 Net Profit Margin of Karnika Industries Ltd?
Karnika Industries Ltd Net Profit Margin is 10.45% for FY-2025 , is above with its 5 year median of 7.94%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 14.7 11.3
Operating Profit Margin 15.13 14.21
Net Profit Margin 10.45 7.94
Q.5 Return on Asset of Karnika Industries Ltd?
Karnika Industries Ltd Return on Asset is 13.15%, which is above its 5 year historical median of 9.29%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Karnika Industries Ltd?
Karnika Industries Ltd Return on equity is 29.05% for FY-2025 , which is in line with its historical median of 29.05%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Karnika Industries Ltd?
Karnika Industries Ltd Return on capital employed is 24.29% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Karnika Industries Ltd?
Karnika Industries Ltd Cash conversion cycle is 192 days, below its historical median of 192 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.26 1.26
ROE 29.05 29.05
ROCE 24.29 23.14
Cash Conversion Cycle 192 days 192 days
Q.9 Debt to Equity ratio of Karnika Industries Ltd?
Karnika Industries Ltd Debt-to-Equity ratio is 0.85 , 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 Karnika Industries Ltd?
Karnika Industries Ltd Debt to cash flow from operations is 14.53 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Karnika Industries Ltd?
Promoters hold 73.39% of the Karnika Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Karnika Industries Ltd vs industry peers?
Karnika Industries Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 0.00% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 172.6 96.6
Gross Profit 25.4 3.2
Operating Profit 26 5.7
Net Profit 18 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.26 0.95
ROE 29.05 4.25
ROCE 24.29 7.55
Cash Conversion Cycle (days) 192.04 102

Valuation & price assessment

Q.1 Stock return of Karnika Industries Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -77.83% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -77.8%
Q.3 Valuation ratios of Karnika Industries 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 46.42 39.96 30.76
Price to Book 9.2 7.78 1.39
Price to Sales 4.85 3.07 1.01
EV to EBITDA 30.2 24.96 9.47

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