Check Before You Invest : Vijay Textiles Ltd

Q: Which industry/sub-sector does Vijay Textiles Ltd belong to?

Vijay Textiles Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q: Is Vijay Textiles Ltd a good quality company?

Vijay Textiles 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 Vijay Textiles Ltd undervalued or overvalued?

Vijay Textiles 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: -, Historic Median: -. Price to Book, Current: 0.33, Historic Median: 0.68. Price to Sales, Current: 1.26, Historic Median: 1.87. EV to EBITDA, Current: -115.49, Historic Median: 32.99

Q: Is Vijay Textiles Ltd a good buy now?

Vijay Textiles 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: Revenue growth of Vijay Textiles Ltd?

Vijay Textiles Ltd revenue growth is -47.8% for FY-2024, which is below its 5-year CAGR of -32.37%, indicating slower growth.

Q: Gross Profit margin of Vijay Textiles Ltd?

Vijay Textiles Ltd Gross profit margin which is the profit after deduction of direct costs, is -64.2% for FY-2024, which is below its 5-year median of -40.2%, indicating decreasing margins.

Q: Operating Profit Margin of Vijay Textiles Ltd?

Vijay Textiles Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -3.82% for FY-2024, which is in line with its 5-year median of -3.82% indicating stable margins.

Q: Net Profit Margin of Vijay Textiles Ltd?

Vijay Textiles Ltd Net Profit Margin is -175.27% for FY-2024, is below its 5-year median of -44.41%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: -64.2, Historic Median: -40.2. Operating Profit Margin (%), Current: -3.82, Historic Median: -3.82. Net Profit Margin (%), Current: -175.27, Historic Median: -44.41

Q: Return on Asset of Vijay Textiles Ltd?

Vijay Textiles Ltd Return on Asset is -6.85%, which is below its 5-year historical median of -3.28%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Vijay Textiles Ltd?

Vijay Textiles Ltd Return on capital employed is -1.7% for FY-2024, which is below its 5-year historical median of -0.59%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Vijay Textiles Ltd

BSE: 530151 NSE: ISIN: INE256G01033

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does Vijay Textiles Ltd belong to?

Vijay Textiles Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Vijay Textiles Ltd a good quality company?

Vijay Textiles 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 Vijay Textiles Ltd undervalued or overvalued?

Vijay Textiles 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	-	-
Price to Book	0.33	0.68
Price to Sales	1.26	1.87
EV to EBITDA	-115.49	32.99

Q.4 Is Vijay Textiles Ltd a good buy now?

Vijay Textiles 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 Vijay Textiles Ltd?

Vijay Textiles Ltd revenue growth is -47.8% for FY-2024, which is below its 5-year CAGR of -32.37%, indicating slower growth.

Q.2 Gross Profit margin of Vijay Textiles Ltd?

Vijay Textiles Ltd Gross profit margin which is the profit after deduction of direct costs, is -64.2% for FY-2024, which is below its 5-year median of -40.2%, indicating decreasing margins.

Q.3 Operating Profit Margin of Vijay Textiles Ltd?

Vijay Textiles Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -3.82% for FY-2024, which is in line with its 5-year median of -3.82% indicating stable margins.

Q.4 Net Profit Margin of Vijay Textiles Ltd?

Vijay Textiles Ltd Net Profit Margin is -175.27% for FY-2024, is below its 5-year median of -44.41%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	-64.2	-40.2
Operating Profit Margin (%)	-3.82	-3.82
Net Profit Margin (%)	-175.27	-44.41

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vijay Textiles Ltd?

Vijay Textiles Ltd Return on Asset is -6.85%, which is below its 5-year historical median of -3.28%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vijay Textiles Ltd?

Vijay Textiles Ltd Return on capital employed is -1.7% for FY-2024, which is below its 5-year historical median of -0.59%. 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 Vijay Textiles Ltd?

Vijay Textiles Ltd Return on equity is -44.4% for FY-2024, which is below its 5-year historical median of -15.01%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Vijay Textiles Ltd?

Vijay Textiles Ltd Cash conversion cycle is 6559 days, above its 5-year historical median of 3480 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)	0.04	0.07
ROE (%)	-44.4	-15.01
ROCE (%)	-1.7	-0.59
Cash Conversion Cycle	6559 days	3480 days

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

Q.9 Debt to Equity ratio of Vijay Textiles Ltd?

Vijay Textiles Ltd Debt-to-Equity ratio is 5.45, 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 Vijay Textiles Ltd?

Vijay Textiles Ltd Debt to cash flow from operations is 38.68, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vijay Textiles Ltd?

Q.1 Promoter shareholding and pledge status of Vijay Textiles Ltd?

Promoters hold 74.76% of the Vijay Textiles Ltd, with 50.27% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vijay Textiles Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vijay Textiles Ltd vs industry peers?

Vijay Textiles Ltd revenue CAGR is -32.37%, 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 (%)	-47.8	0
Gross Profit Growth (%)	0	9.1
Operating Profit Growth (%)	-116.1	8.5
Net Profit Growth (%)	0	13

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.04	0.95
ROE (%)	-44.4	4.25
ROCE (%)	-1.7	7.55
Cash Conversion Cycle (days)	6559.21	102

Valuation & price assessment

Q.1 Stock return of Vijay Textiles Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -15.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-15.6%	-32%	-41.1%	-44.3%

Q.2 Valuation ratios of Vijay Textiles Ltd vs historical?

The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near 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	-	-	20.16
Price to Book	0.33	0.68	1.32
Price to Sales	1.26	1.87	1.06
EV to EBITDA	-115.49	32.99	9.31

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Check Before You Invest : Vijay Textiles Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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