Check Before You Invest : Padam Cotton Yarns Ltd

Q: Which industry/sub-sector does Padam Cotton Yarns Ltd belong to?

Padam Cotton Yarns Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q: Is Padam Cotton Yarns Ltd a good quality company?

Padam Cotton Yarns 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: Is Padam Cotton Yarns Ltd undervalued or overvalued?

Padam Cotton Yarns 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. Price to Earnings, Current: 2.5, Historic Median: 4.41. Price to Book, Current: 0.53, Historic Median: 2.39. Price to Sales, Current: 0.36, Historic Median: -. EV to EBITDA, Current: 1.85, Historic Median: 2.01

Q: Is Padam Cotton Yarns Ltd a good buy now?

Padam Cotton Yarns 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

Q: Gross Profit margin of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Gross profit margin which is the profit after deduction of direct costs, is 92.1% for FY-2025, which is above its 5-year median of -1842.5%, indicating increasing margins.

Q: Operating Profit Margin of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.84% for FY-2025, which is above its 5-year median of -4456.52% indicating increasing margins.

Q: Net Profit Margin of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Net Profit Margin is 74.55% for FY-2025, is below its 5-year median of 5506.67%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 92.1, Historic Median: -1842.5. Operating Profit Margin (%), Current: 14.84, Historic Median: -4456.52. Net Profit Margin (%), Current: 74.55, Historic Median: 5506.67

Q: Return on Asset of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Return on Asset is 56.21%, which is above its 5-year historical median of 26.69%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Return on capital employed is 109.53% for FY-2025, which is above its 5-year historical median of 37.02%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q: Return on Equity (ROE) of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Return on equity is 88.73% for FY-2025, which is above its 5-year historical median of 27.48%, indicating the business is making better use of its shareholders capital.

Check Before You Invest : Padam Cotton Yarns Ltd

BSE: 531395 NSE: ISIN: INE448D01025

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does Padam Cotton Yarns Ltd belong to?

Padam Cotton Yarns Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Padam Cotton Yarns Ltd a good quality company?

Padam Cotton Yarns 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 Padam Cotton Yarns Ltd undervalued or overvalued?

Padam Cotton Yarns 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	2.5	4.41
Price to Book	0.53	2.39
Price to Sales	0.36	-
EV to EBITDA	1.85	2.01

Q.4 Is Padam Cotton Yarns Ltd a good buy now?

Padam Cotton Yarns 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.

Q.1 Gross Profit margin of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Gross profit margin which is the profit after deduction of direct costs, is 92.1% for FY-2025, which is above its 5-year median of -1842.5%, indicating increasing margins.

Q.2 Operating Profit Margin of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.84% for FY-2025, which is above its 5-year median of -4456.52% indicating increasing margins.

Q.3 Net Profit Margin of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Net Profit Margin is 74.55% for FY-2025, is below its 5-year median of 5506.67%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	92.1	-1842.5
Operating Profit Margin (%)	14.84	-4456.52
Net Profit Margin (%)	74.55	5506.67

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Return on Asset is 56.21%, which is above its 5-year historical median of 26.69%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Return on capital employed is 109.53% for FY-2025, which is above its 5-year historical median of 37.02%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Return on equity is 88.73% for FY-2025, which is above its 5-year historical median of 27.48%, indicating the business is making better use of its shareholders capital.

Q.7 Cash conversion cycle of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Cash conversion cycle is 12 days, below its 5-year historical median of 111131 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.75	-
ROE (%)	88.73	27.48
ROCE (%)	109.53	37.02
Cash Conversion Cycle	12 days	111131 days

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

Q.8 Debt to Equity ratio of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Padam Cotton Yarns Ltd?

Padam Cotton Yarns Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Padam Cotton Yarns Ltd?

Q.1 Promoter shareholding and pledge status of Padam Cotton Yarns Ltd?

Promoters hold 0.00% of the Padam Cotton Yarns Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Padam Cotton Yarns Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Padam Cotton Yarns Ltd vs industry peers?

Padam Cotton Yarns 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	5-year Industry Median
Revenue Growth (%)	-	0
Gross Profit Growth (%)	0	9.1
Operating Profit Growth (%)	0	8.5
Net Profit Growth (%)	542.4	13

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.75	0.95
ROE (%)	88.73	4.25
ROCE (%)	109.53	7.55
Cash Conversion Cycle (days)	11.94	102

Valuation & price assessment

Q.1 Stock return of Padam Cotton Yarns Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	3.1%	33.6%	26%	-78.2%

Q.2 Valuation ratios of Padam Cotton Yarns Ltd vs historical?

The current P/E ratio of 2.5 is lower than its historical median of 4.41, indicating that the stock is trading below 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	2.5	4.41	20.16
Price to Book	0.53	2.39	1.32
Price to Sales	0.36	-	1.06
EV to EBITDA	1.85	2.01	9.31

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Check Before You Invest : Padam Cotton Yarns Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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