H P Cotton Textile Mills Adjusts Valuation Amidst Competitive Industry Challenges

H P Cotton Textile Mills has recently undergone a valuation adjustment, reflecting its current financial metrics and market position within the textile industry. The company's price-to-earnings ratio stands at -35.28, indicating a challenging profitability scenario. Additionally, its price-to-book value is recorded at 2.34, while the enterprise value to EBITDA ratio is 9.31, suggesting a moderate valuation relative to earnings before interest, taxes, depreciation, and amortization.
In terms of return on capital employed (ROCE), H P Cotton reports a rate of 6.17%, contrasted by a negative return on equity (ROE) of -14.75%. These figures highlight the company's struggles in generating shareholder value.

When compared to its peers, H P Cotton's valuation metrics present a mixed picture. For instance, while Indo Rama Synthetic is categorized as loss-making, Mafatlal Industries shows a more attractive valuation with a PE ratio of 7.94. Other competitors like R&B Denims and VTM are also positioned as expensive, but with varying financial health indicators. This context underscores the competitive landscape in which H P Cotton operates, emphasizing the need for strategic adjustments to enhance its market standing.