The stock closed at ₹4.75 on February 13, 2026, gaining 4.86% in a single day despite the grim operational reality. However, this minor uptick does little to offset the devastating 52.69% decline over the past year, during which the Sensex gained 8.52%. The company's shares have plummeted 61.60% from their 52-week high of ₹12.37, though they remain 24.67% above the 52-week low of ₹3.81. Trading volumes remain anaemic at just 579 shares, reflecting minimal investor interest in this distressed asset.
Financial Performance: A Company Without Operations
Jagjanani Textiles' Q3 FY26 results paint a picture of complete operational collapse. The company recorded zero revenue for the seventh consecutive quarter, with no signs of manufacturing activity resuming at its RIICO Industrial Area facility in Bagru, Jaipur. The operating loss before depreciation, interest, and tax (PBDIT) excluding other income stood at ₹0.22 crores in Q3 FY26, the worst quarterly performance in recent history and a sharp deterioration from the ₹0.03 crore loss in Q2 FY26.
| Quarter | Dec'25 | Sep'25 | Jun'25 | Mar'25 | Dec'24 | Sep'24 |
|---|---|---|---|---|---|---|
| Net Sales (₹ Cr) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Operating Profit (₹ Cr) | -0.22 | -0.03 | -0.03 | -0.14 | -0.09 | 0.00 |
| Net Profit (₹ Cr) | -0.22 | -0.03 | -0.03 | -0.03 | -0.09 | 0.00 |
| Employee Cost (₹ Cr) | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.00 |
The sequential deterioration is particularly concerning. Whilst Q2 FY26 saw a modest loss of ₹0.03 crores, Q3 FY26's loss ballooned to ₹0.22 crores—a 633.33% quarter-on-quarter decline. This suggests that even without operations, the company's cost structure continues to drain whatever limited resources remain. Employee costs, though minimal at ₹0.01 crores per quarter, persist despite the absence of manufacturing activity. The company reported zero depreciation and zero interest costs, indicating that fixed assets have been fully written down and debt obligations have been cleared.
On an annual basis, the picture is equally bleak. The last time Jagjanani Textiles reported meaningful revenue was in FY2020, when it posted sales of ₹5.00 crores. However, even that figure represented a dramatic collapse from the ₹7.00 crores recorded in FY2015. The company's five-year sales growth stands at 0.0%, whilst five-year EBIT growth registers at -1.02%, underscoring the complete absence of operational momentum.
Critical Operational Failure
Jagjanani Textiles has recorded zero revenue for seven consecutive quarters through Q3 FY26. The company's 3,600 metric tonne per annum cotton yarn manufacturing facility in Bagru, Jaipur, remains completely idle. With no signs of operational restart, mounting losses, and negative shareholder equity, the company faces an existential crisis that appears increasingly difficult to resolve.
Balance Sheet Crisis: Negative Equity and Deteriorating Position
Jagjanani Textiles' balance sheet reflects a company in severe financial distress. As of March 2025, shareholder funds stood at a negative ₹0.06 crores, comprising share capital of ₹15.60 crores offset by reserves and surplus of negative ₹15.66 crores. This represents a deterioration from the marginally positive ₹0.08 crores in shareholder funds as of March 2024, indicating that accumulated losses continue to erode whatever equity base remained.
The company's book value per share has turned negative at ₹0.04, a clear signal that liabilities exceed assets on a per-share basis. With 1.56 crore shares outstanding, the mathematical equity value has been completely wiped out. The company's price-to-book ratio of -7.41x reflects the market's recognition that the shares trade at a multiple of negative book value—a highly unusual and concerning situation that typically indicates severe distress or impending liquidation.
On the asset side, fixed assets have been reduced to zero as of March 2025, suggesting complete write-downs or disposals of the manufacturing infrastructure. Current assets stood at a mere ₹0.02 crores, down from ₹0.63 crores in March 2020, indicating a systematic liquidation of working capital. The company holds no investments and minimal cash, leaving it with virtually no resources to fund a potential operational restart.
Liabilities remain modest but concerning given the absence of revenue. Current liabilities totalled ₹0.29 crores as of March 2025, up from ₹0.05 crores in March 2024, driven primarily by trade payables of ₹0.27 crores. Long-term debt has been reduced to zero from ₹0.10 crores in March 2024, suggesting either repayment or restructuring. The company's debt-to-equity ratio averages 0.0 times, but this reflects the absence of both meaningful debt and positive equity rather than financial strength.
Cash Flow Paralysis
Jagjanani Textiles' cash flow statement reveals a company with minimal financial activity. For FY2025, cash flow from operations stood at zero, reflecting the complete absence of business activity. Cash flow from investing activities was also zero, whilst cash flow from financing activities was zero. The company's closing cash position remained at zero for FY2025, unchanged from FY2024, indicating that whatever limited transactions occur are settled through non-cash means or minimal working capital adjustments.
Profitability Metrics: A Study in Deterioration
Jagjanani Textiles' profitability metrics underscore the severity of its operational crisis. The company's average return on equity (ROE) stands at 0.0%, reflecting the inability to generate any returns on the negative equity base. The average return on capital employed (ROCE) registers at 1.91%, but this figure is misleading given the negative capital employed situation. The latest ROCE is marked as "Negative Capital Employed," confirming that the company lacks the fundamental resources to generate returns.
All margin metrics have collapsed to 0.0% across the board. Operating margin excluding other income, gross profit margin, and PAT margin all stand at 0.0% for the recent quarters, a mathematical certainty given zero revenue. Even in FY2020, when the company last reported sales of ₹5.00 crores, the operating margin was an unsustainable 100.0%—likely reflecting asset disposals or one-time gains rather than genuine operational profitability.
The company's EBIT-to-interest coverage ratio averages 0.0 times, indicating no earnings available to service interest obligations. Fortunately, the company carries no interest-bearing debt, avoiding what would otherwise be an immediate solvency crisis. However, this absence of leverage also means the company has no access to capital markets for funding, as lenders would clearly view this as an unviable lending proposition.
| Profitability Metric | Current Status | Assessment |
|---|---|---|
| Average ROE | 0.0% | No returns on negative equity |
| Average ROCE | 1.91% | Misleading; negative capital employed |
| Operating Margin (Excl OI) | 0.0% | Zero revenue, no margin generation |
| PAT Margin | 0.0% | Consistent losses with no revenue |
| 5-Year Sales Growth | 0.0% | Complete operational collapse |
Valuation Analysis: A Stock Trading Below Distressed Levels
Jagjanani Textiles' valuation metrics reflect a company that the market has essentially written off. The P/E ratio stands at "NA (Loss Making)," as the company has generated consistent losses for years. The price-to-book ratio of -7.41x indicates the stock trades at a multiple of negative book value—a rare and concerning situation that suggests investors are speculating on potential asset recoveries or corporate actions rather than business fundamentals.
Enterprise value metrics are equally distressed. The EV-to-EBITDA, EV-to-EBIT, EV-to-Sales, and EV-to-Capital Employed ratios all register at -7.41x or "NA," reflecting the negative equity situation and absence of meaningful earnings or sales. The PEG ratio is "NA," as there is no earnings growth to measure. Dividend yield is "NA" with no dividends paid, unsurprising given the negative equity and ongoing losses.
The company's overall valuation assessment is categorised as "RISKY" by analytical frameworks, a designation it has held since August 2023 with brief interruptions. The stock's 52-week range of ₹3.81 to ₹12.37 shows extreme volatility, with the current price of ₹4.75 sitting just 24.67% above the low but 61.60% below the high. This wide range reflects speculative trading rather than fundamental value discovery.
At a market capitalisation of ₹7.00 crores, Jagjanani Textiles ranks as a micro-cap stock with minimal institutional interest and negligible trading volumes. The stock's face value of ₹10.00 exceeds its current market price of ₹4.75, highlighting the severe erosion of shareholder value. For context, the company's equity capital of ₹15.60 crores represents the nominal value of 1.56 crore shares, but the market values this equity base at less than half that amount.
Peer Comparison: Bottom of the Barrel
Within the garments and apparels sector, Jagjanani Textiles occupies the weakest position amongst its peer group. A comparison with other micro-cap textile companies reveals the severity of its underperformance.
| Company | P/E Ratio | ROE (%) | Debt/Equity | Price/Book | Market Cap (₹ Cr) |
|---|---|---|---|---|---|
| Jagjanani Textiles | NA (Loss Making) | 0.0% | 0.00 | -7.41 | 7.00 |
| Suncity Synthetics | 84.47 | 0.0% | -0.24 | -8.45 | N/A |
| Peeti Securities | NA (Loss Making) | 5.73% | -0.13 | 0.67 | N/A |
| Amraworld Agrico | NA (Loss Making) | 0.01% | 0.00 | 0.72 | N/A |
| Amit International | 57.32 | 0.0% | -0.02 | 0.35 | N/A |
Jagjanani Textiles' ROE of 0.0% matches several distressed peers but falls well short of Peeti Securities' 5.73%. The company's negative price-to-book ratio of -7.41x is marginally better than Suncity Synthetics' -8.45x but far worse than the positive P/BV ratios of Peeti Securities (0.67x), Amraworld Agrico (0.72x), and Amit International (0.35x). This suggests the market views Jagjanani Textiles as having minimal recovery prospects compared to other distressed textile players.
The peer group comparison reveals a sector plagued by operational challenges, with multiple companies reporting zero or minimal ROE, negative equity positions, and loss-making status. However, even within this distressed cohort, Jagjanani Textiles stands out for its complete absence of operations and negative shareholder equity, positioning it at the bottom tier of an already struggling sector.
Shareholding Pattern: Promoter Reduction and Retail Dominance
Jagjanani Textiles' shareholding pattern reveals a concerning trend of promoter stake reduction and overwhelming retail investor dominance. As of December 2025, promoter holding stood at 19.86%, unchanged from September 2025 but down significantly from 25.06% in June 2025 and 24.56% in March 2025. This sequential reduction of 5.20 percentage points between June and September 2025 suggests promoters are distancing themselves from the company during its operational crisis.
| Quarter | Dec'25 | Sep'25 | Jun'25 | Mar'25 | Dec'24 |
|---|---|---|---|---|---|
| Promoter Holding | 19.86% | 19.86% | 25.06% | 24.56% | 24.56% |
| QoQ Change | 0.00% | -5.20% | +0.50% | 0.00% | — |
| Non-Institutional | 80.14% | 80.14% | 74.94% | 75.44% | 75.44% |
| FII Holding | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Mutual Fund | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
The key promoters are Avnish Manojkumar Patel with 16.75% and Manojbhai Jayantibhai Patel with 3.11%. Positively, there is no promoter pledging, eliminating one potential risk factor. However, the reduction in promoter stake from 25.06% to 19.86% over two quarters raises questions about promoter commitment and confidence in the company's revival prospects.
Non-institutional investors—primarily retail shareholders—hold a dominant 80.14% stake as of December 2025, up from 74.94% in June 2025. This increase corresponds directly to the promoter stake reduction, suggesting promoter shares have been absorbed by retail investors, likely at distressed prices. The complete absence of institutional investors is telling: no foreign institutional investors (FIIs), no mutual funds, and no insurance companies hold stakes in Jagjanani Textiles. This institutional void reflects the company's lack of credibility and viability in the eyes of professional investors.
Stock Performance: Severe Underperformance Across All Timeframes
Jagjanani Textiles' stock performance reflects the market's recognition of its operational failure. Over the past year, the stock has plummeted 52.69%, whilst the Sensex gained 8.52%, resulting in a negative alpha of 61.21 percentage points. This massive underperformance extends across most timeframes, with only long-term historical periods showing positive returns.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | 7.95% | -1.14% | +9.09% |
| 1 Month | 2.81% | -1.20% | +4.01% |
| 3 Months | -23.63% | -2.19% | -21.44% |
| 6 Months | -49.47% | 2.59% | -52.06% |
| YTD | -5.57% | -3.04% | -2.53% |
| 1 Year | -52.69% | 8.52% | -61.21% |
| 2 Years | -61.66% | 15.47% | -77.13% |
| 3 Years | 72.73% | 36.73% | +36.00% |
| 5 Years | 619.70% | 60.30% | +559.40% |
The recent performance is particularly dire. Over the past six months, the stock has lost 49.47% whilst the Sensex gained 2.59%, producing a negative alpha of 52.06 percentage points. The three-month return of -23.63% versus the Sensex's -2.19% shows accelerating underperformance. Even the year-to-date figure of -5.57% compares unfavourably to the Sensex's -3.04%.
Short-term gains of 7.95% over one week and 2.81% over one month appear to be temporary rebounds within a broader downtrend, likely driven by speculative trading given the minimal volumes. The stock's beta of 1.50 indicates it is 50% more volatile than the market, classified as a "High Beta Stock" with correspondingly elevated risk.
The longer-term picture shows anomalous positive returns: 72.73% over three years and a remarkable 619.70% over five years. However, these figures are misleading, as they likely reflect recovery from even more distressed levels in 2020-2021 rather than genuine business improvement. The five-year return's base effect from extremely low prices during the COVID-19 period distorts the true picture of value destruction.
Technical Analysis: Mildly Bearish Trend with Limited Support
From a technical perspective, Jagjanani Textiles exhibits a "MILDLY BEARISH" trend as of February 13, 2026, having just changed from "Bearish" on the same day at ₹4.75. This represents a marginal improvement from the outright bearish classification, but the overall technical picture remains weak with the stock trading below all major moving averages.
The stock trades at ₹4.75, below its 5-day moving average of ₹4.64, 20-day MA of ₹4.55, 50-day MA of ₹4.89, 100-day MA of ₹5.35, and 200-day MA of ₹7.07. This alignment of moving averages in descending order confirms a sustained downtrend with multiple layers of resistance overhead. The immediate support level sits at ₹3.81 (the 52-week low), whilst resistance emerges at ₹4.55 (20-day MA area), with stronger resistance at ₹5.35 (100-day MA) and ₹7.07 (200-day MA).
Technical indicators present mixed signals. The MACD shows "Mildly Bullish" on the weekly chart but "Bearish" on the monthly chart, suggesting short-term momentum may be improving whilst the longer-term trend remains negative. RSI shows "No Signal" on both weekly and monthly charts, indicating the stock is neither overbought nor oversold. Bollinger Bands register "Mildly Bearish" on both timeframes, suggesting the stock is trending towards the lower band with limited upside momentum.
Delivery volumes have increased substantially, with one-month delivery volume rising 47.13% and one-day delivery at 96.72% of total volume versus a five-day average of 98.54%. This high delivery percentage suggests genuine buying interest rather than speculative intraday trading, though the absolute volumes remain minimal at just 56 shares on February 13, 2026.
Quality Assessment: Below Average and Deteriorating
Jagjanani Textiles receives a "BELOW AVERAGE" quality grade, reflecting its weak long-term financial performance and operational challenges. The company previously held a "Does Not Qualify" status before September 2025, indicating a marginal improvement in quality classification despite ongoing operational paralysis—likely a technical reclassification rather than genuine business improvement.
Key quality metrics underscore the company's fundamental weaknesses. Five-year sales growth stands at 0.0%, whilst five-year EBIT growth registers at -1.02%, confirming zero revenue generation and negative operational trends. The average EBIT-to-interest coverage of 0.0 times indicates no earnings available for interest payments, though the absence of interest-bearing debt mitigates immediate solvency concerns.
The company's average ROCE of 1.91% and average ROE of 0.0% rank amongst the weakest in the textile sector. The latest ROCE is classified as "Negative Capital Employed," whilst the latest ROE shows "Negative BV" (negative book value), confirming the erosion of the equity base. These metrics indicate the company has destroyed rather than created shareholder value over the medium term.
Positively, the company has no promoter pledging (0.0% pledged shares), eliminating one governance risk factor. However, institutional holdings stand at 0.0%, reflecting the complete absence of professional investor confidence. The tax ratio is marked as "Tax Ratio is Negative%," consistent with ongoing losses, whilst the dividend payout ratio of 0.0 confirms no distributions to shareholders.
Key Strengths
- No promoter pledging (0.0% pledged shares)
- Zero debt position eliminates solvency risk
- Minimal current liabilities at ₹0.29 crores
- Recent technical trend improvement to "Mildly Bearish"
- High delivery volumes suggest genuine buying interest
Key Concerns
- Zero revenue for seven consecutive quarters
- Negative shareholder equity of ₹0.06 crores
- Negative book value per share of ₹0.04
- Complete absence of institutional investors
- Promoter stake reduced from 25.06% to 19.86%
- 52.69% stock price decline over past year
- Average ROE of 0.0% and ROCE of 1.91%
Investment Thesis: A Distressed Asset with Minimal Recovery Prospects
Jagjanani Textiles presents an investment thesis centred on distress rather than opportunity. The company's proprietary Mojo Score of 17 out of 100 and "STRONG SELL" advisory rating reflect the severity of its operational and financial challenges. The score places the company firmly in the "STRONG SELL" category (0-30 points), with key concerns including bearish technical trends, flat financial performance, negative book value, and severe market underperformance.
The Mojo 4 Dots Analysis reveals "MIXED" near-term drivers (flat financial trend, mildly bearish technicals), "BELOW AVERAGE" quality, "RISKY" valuation, and an overall "MIXED" assessment. However, this "mixed" characterisation understates the severity of the situation—the company has no operations, negative equity, and no clear path to recovery.
From a valuation perspective, the company is classified as "RISKY" with a price-to-book ratio of -7.41x and a P/E ratio of "NA (Loss Making)." The stock trades at ₹4.75 against a face value of ₹10.00, highlighting the erosion of nominal value. The 52-week range of ₹3.81 to ₹12.37 shows extreme volatility driven by speculation rather than fundamentals.
Outlook: What Lies Ahead for Jagjanani Textiles
The outlook for Jagjanani Textiles remains overwhelmingly negative in the absence of a clear operational restart plan or capital infusion. The company faces several critical challenges that must be addressed for any potential recovery.
Potential Positive Catalysts
- Operational restart with secured working capital
- Strategic investor or promoter capital infusion
- Asset monetisation to restore positive equity
- Debt restructuring or settlement of liabilities
- Corporate restructuring or merger opportunity
Critical Red Flags
- Continued operational paralysis beyond Q3 FY26
- Further erosion of shareholder equity below current levels
- Additional promoter stake reductions signalling exit
- Inability to secure funding for operational restart
- Legal or regulatory actions due to prolonged inactivity
- Delisting risk if trading volumes remain minimal
For the company to have any chance of recovery, it would need to secure substantial working capital (likely ₹10-15 crores minimum) to restart its 3,600 metric tonne per annum cotton yarn facility, rebuild its customer base in export markets like Bahrain, Dubai, Egypt, and Pakistan, and restore operational capabilities that have been dormant for years. The textile industry's competitive dynamics and the company's prolonged absence from the market make such a revival increasingly improbable.
Investors should monitor whether the company files for insolvency proceedings, pursues asset sales, or attracts strategic interest from larger textile players seeking distressed acquisitions. The promoter stake reduction from 25.06% to 19.86% suggests even insiders are losing confidence, a particularly concerning signal for external shareholders.
The Verdict: A Company in Terminal Decline
Score: 17/100
For Fresh Investors: Avoid completely. Jagjanani Textiles exhibits all the characteristics of a failing enterprise—zero revenue, negative equity, no institutional backing, and no credible recovery plan. The stock is suitable only for highly speculative traders willing to accept total capital loss.
For Existing Holders: Exit immediately at any available price. The company's operational paralysis has persisted for years with no signs of reversal. With negative shareholder equity of ₹0.06 crores and a negative book value per share, there is minimal residual value to protect. The 52.69% decline over the past year is likely to continue absent a dramatic operational turnaround that appears increasingly unlikely.
Fair Value Estimate: Not applicable. Traditional valuation methods cannot be applied to a company with zero revenue, negative equity, and no discernible path to profitability. The stock trades on speculation rather than fundamentals, with intrinsic value effectively at or near zero.
Rationale: The STRONG SELL rating reflects the company's complete operational failure, negative shareholder equity, absence of institutional confidence, and lack of any credible recovery catalyst. With seven consecutive quarters of zero revenue and mounting losses, Jagjanani Textiles represents a distressed asset facing potential liquidation or insolvency proceedings rather than a viable investment opportunity.
Note- ROCE= (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions.
