Filatex India Ltd is Rated Hold

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for Filatex India Ltd indicates a balanced view of the stock’s prospects. It suggests that while the company demonstrates certain strengths, there are also factors that warrant caution. Investors are advised to maintain their existing positions rather than aggressively buying or selling at this stage. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals.

Quality Assessment

As of 16 February 2026, Filatex India Ltd exhibits a good quality grade. The company’s management efficiency is reflected in a robust Return on Equity (ROE) of 18.10%, signalling effective utilisation of shareholder funds. Additionally, the firm maintains a strong ability to service its debt, with a low Debt to EBITDA ratio of 0.68 times, indicating prudent financial management and limited leverage risk. These factors contribute positively to the company’s overall quality profile.

Valuation Perspective

The valuation grade for Filatex India Ltd is very attractive at present. The stock trades at a Price to Book Value of 1.5, which is considered a discount relative to its peers’ historical averages. This suggests that the market currently values the company conservatively, potentially offering a margin of safety for investors. Furthermore, the company’s Price/Earnings to Growth (PEG) ratio stands at a low 0.3, indicating that earnings growth is not fully priced into the stock, which may appeal to value-oriented investors.

Financial Trend Analysis

Financially, the company shows a positive trend. Over the past year, Filatex India Ltd has delivered a total return of 9.35%, while its profits have surged by 44.5%. The company has also declared positive results for five consecutive quarters, with key metrics such as Return on Capital Employed (ROCE) reaching a half-year high of 16.43%, quarterly PBDIT peaking at ₹89.83 crores, and operating profit to net sales ratio hitting 8.56%. However, it is important to note that long-term growth remains modest, with operating profit growing at an annual rate of 7.56% over the last five years.

Technical Outlook

From a technical standpoint, the stock currently holds a bearish grade. Recent price movements show volatility, with a one-day decline of 2.38% and a one-week drop of 10.10%. Over the last three months, the stock has fallen by 16.52%, reflecting some short-term selling pressure. Despite this, the stock has managed a positive one-year return of 9.35%, indicating resilience over a longer horizon. Investors should monitor technical indicators closely as they may influence near-term price action.

Stock Performance Summary

As of 16 February 2026, Filatex India Ltd’s stock performance presents a mixed picture. While the six-month return is negative at -10.36%, and the year-to-date return stands at -4.16%, the one-year return remains positive at 9.35%. This suggests that despite recent headwinds, the stock has delivered reasonable gains over the past year. The company’s market capitalisation remains in the smallcap segment, which often entails higher volatility but also potential for growth.

Investor Considerations

For investors, the 'Hold' rating implies a cautious approach. The company’s strong management efficiency and attractive valuation provide a solid foundation, but the bearish technical signals and modest long-term growth temper enthusiasm. Those holding the stock may consider maintaining their positions while monitoring quarterly results and market trends closely. Prospective investors might wait for clearer technical signals or further fundamental improvements before committing fresh capital.

Company Profile and Shareholding

Filatex India Ltd operates within the Garments & Apparels sector and is classified as a smallcap company. The majority shareholding is held by promoters, which often provides stability in corporate governance and strategic direction. The company’s consistent positive quarterly results and strong capital efficiency metrics underscore its operational competence within its sector.

Conclusion: What the Hold Rating Means for Investors

The 'Hold' rating assigned to Filatex India Ltd by MarketsMOJO reflects a nuanced view of the stock’s current standing. It recognises the company’s solid quality and attractive valuation, balanced against technical weaknesses and moderate long-term growth prospects. Investors should interpret this rating as a signal to maintain existing holdings with prudence, rather than initiating new positions aggressively. Continuous monitoring of financial results and market conditions will be essential to reassess the stock’s outlook in the coming months.

Summary of Key Metrics as of 16 February 2026

• ROE: 18.10%
• Debt to EBITDA: 0.68 times
• Operating Profit Growth (5-year CAGR): 7.56%
• Consecutive Positive Quarters: 5
• ROCE (Half Year): 16.43%
• Quarterly PBDIT: ₹89.83 crores
• Operating Profit to Net Sales (Quarterly): 8.56%
• Price to Book Value: 1.5
• PEG Ratio: 0.3
• 1-Year Stock Return: +9.35%

These figures provide a comprehensive snapshot of the company’s current financial health and market valuation, supporting the rationale behind the 'Hold' rating.

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