Ashnoor Textile Mills Reports Strong Sales Growth Amid High Debt Concerns

Ashnoor Textile Mills, a microcap player in the textile industry, has recently undergone an evaluation adjustment reflecting its financial standing. The company reported a notable growth in net sales of 7.46% for the quarter ending December 2024, contributing to a very positive financial performance for Q3 FY24-25. This marks the third consecutive quarter of positive results for Ashnoor Textile, with net sales for the half-year reaching Rs 87.62 crore, showcasing a growth rate of 41.69%.
The company's profit before tax, excluding other income, stood at Rs 4.19 crore, indicating a significant increase compared to the previous four-quarter average. Additionally, the profit after tax for the half-year was reported at Rs 9.79 crore. Despite these positive indicators, the company faces challenges with a high debt-to-EBITDA ratio of 3.35 times, which suggests a lower capacity to service its debt obligations.

In terms of market performance, Ashnoor Textile Mills has outperformed the broader market, generating a return of 20.32% over the past year, while the BSE 500 index reported negative returns. The stock's valuation remains attractive, trading at a discount compared to its peers, with a return on capital employed (ROCE) of 11.1%.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.