SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Shri Techtex Ltd

BSE: 0 NSE: SHRITECH ISIN: INE0OMF01015
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Shri Techtex Ltd belong to?
Shri Techtex Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Shri Techtex Ltd a good quality company?
Shri Techtex Ltd is a good quality company, based on a consistently good 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 Shri Techtex Ltd undervalued or overvalued?
Shri Techtex 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 11.26 13.78
Price to Book 1.68 2.05
Price to Sales 2 2.25
EV to EBITDA 6.56 8.87
Q.4 Is Shri Techtex Ltd a good buy now?
Shri Techtex 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

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 Shri Techtex Ltd?
Shri Techtex Ltd revenue growth is 8.2% for FY-2025, which is below its 5-year CAGR of 38.74%, indicating slower growth.

Q.2 Gross Profit margin of Shri Techtex Ltd?
Shri Techtex Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.9% for FY-2025, which is above its 5-year median of 24.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Shri Techtex Ltd?
Shri Techtex Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.33% for FY-2025, which is in line with its 5-year median of 25.33% indicating stable margins.

Q.4 Net Profit Margin of Shri Techtex Ltd?
Shri Techtex Ltd Net Profit Margin is 17.75% for FY-2025, is above its 5-year median of 16.15%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 26.9 24.7
Operating Profit Margin (%) 25.33 25.33
Net Profit Margin (%) 17.75 16.15

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Shri Techtex Ltd?
Shri Techtex Ltd Return on Asset is 13.63%, which is below its 5-year historical median of 14.38%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Shri Techtex Ltd?
Shri Techtex Ltd Return on capital employed is 22.21% for FY-2025, which is below its 5-year historical median of 24.51%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Shri Techtex Ltd?
Shri Techtex Ltd Return on equity is 16.08% for FY-2025, which is below its 5-year historical median of 35.83%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Shri Techtex Ltd?
Shri Techtex Ltd Cash conversion cycle is 123 days, above its 5-year historical median of 84 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) 0.77 0.9
ROE (%) 16.08 35.83
ROCE (%) 22.21 24.51
Cash Conversion Cycle 123 days 84 days

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

Q.9 Debt to Equity ratio of Shri Techtex Ltd?
Shri Techtex Ltd Debt-to-Equity ratio is 0.11, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Shri Techtex Ltd?
Shri Techtex Ltd Debt to cash flow from operations is 0.55, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Shri Techtex Ltd?

Q.1 Promoter shareholding and pledge status of Shri Techtex Ltd?
Promoters hold 70.34% of the Shri Techtex Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Shri Techtex Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Shri Techtex Ltd vs industry peers?
Shri Techtex Ltd revenue CAGR is 38.74%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 8.2 0
Gross Profit Growth (%) 15.8 9.1
Operating Profit Growth (%) 10.5 8.5
Net Profit Growth (%) 25 13
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.77 0.95
ROE (%) 16.08 4.25
ROCE (%) 22.21 7.55
Cash Conversion Cycle (days) 123.35 102

Valuation & price assessment

Q.1 Stock return of Shri Techtex Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -18.27% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -18.3%
Q.2 Valuation ratios of Shri Techtex Ltd vs historical?
The current P/E ratio of 11.26 is lower than its historical median of 13.78, 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 11.26 13.78 20.16
Price to Book 1.68 2.05 1.32
Price to Sales 2 2.25 1.06
EV to EBITDA 6.56 8.87 9.31

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×