Loyal Textile

Why is Loyal Textile Mills Ltd falling/rising?

As of 05-Jul, the stock price of Loyal Textile Mills Ltd is currently at Rs 210.00, reflecting a short-term rise despite a significant year-long decline of 26.97% and ongoing operational challenges. The company's financial health is concerning, leading to a classification of the stock as a strong sell.

As of 05-Jul, the stock price of Loyal Textile Mills Ltd is rising, currently at Rs 210.00, reflecting a change of Rs 9.0 or 4.48%. This increase is notable as the stock has outperformed its sector by 4.29% today. Additionally, the stock reached an intraday high of Rs 210, indicating positive trading activity.<BR><BR>Despite this short-term rise, it is essential to consider the broader context of the company's performance. Over the past year, the stock has experienced a significant decline of 26.97%, and it has consistently underperformed against the benchmark indices, including a 68.63% drop over the last three years. The company is facing substantial operational challenges, including negative EBITDA of Rs -26.53 crore and a high Debt to EBITDA ratio of -8.13 times, which indicates a weak ability to service its debt.<BR><BR>Furthermore, the company's financial results show a decline in net sales and profit after tax, both down by 39.12% in the last nine months. The return on equity is low at 5.51%, suggesting limited profitability. While the recent increase in stock price may be attributed to rising investor participation, with a notable 320.17% increase in delivery volume on July 2, the overall financial health of the company remains concerning, leading to a classification of the stock as a strong sell. Thus, while there is a temporary rise in the stock price, the long-term outlook is overshadowed by significant operational and financial difficulties.

Which are the latest news on Loyal Textile?

Who are in the management team of Loyal Textile?

The management team of Loyal Textile includes Chairperson Valli M Ramaswami, Whole-time Directors M.E. Manivannan and Vishala Ramswami, Directors R Poornalingam and B Vaidyanathan, and several Independent Directors, along with Company Secretary P Mahadevan. They oversee the company's strategic direction and management.

The management team of Loyal Textile includes the following individuals:<BR><BR>1. **Valli M Ramaswami** - Chairperson & Whole Time Director<BR>2. **M.E. Manivannan** - Whole-time Director<BR>3. **Vishala Ramswami** - Executive Director<BR>4. **R Poornalingam** - Director<BR>5. **B Vaidyanathan** - Director<BR>6. **M Madhavan Nambiar** - Independent Director<BR>7. **Bendoor Tarachand Bangera** - Independent Director<BR>8. **Vijayalakshmi Rao** - Independent Director<BR>9. **RAJU KANNAN** - Independent Director<BR>10. **Gokul Subramanian Dixit** - Independent Director<BR>11. **P Mahadevan** - Company Secretary & Compliance Officer<BR><BR>This team is responsible for the strategic direction and management of the company.

Who are the peers of the Loyal Textile?

Loyal Textile's peers include Suryalak. Cott., Lambodhara Text., Lovable Lingerie, Globe Enterprise, SEL Mfg. Co, Vippy Spinpro, Addi Industries, Rachit Prints, and Surat Trade, with Vippy Spinpro showing the highest 1-year return at 0.00% and Loyal Textile at -30.89%. Management risks vary from excellent at Rachit Prints to below average for several peers, including Loyal Textile.

Peers: The peers of Loyal Textile are Suryalak. Cott., Lambodhara Text., Lovable Lingerie, Globe Enterprise, SEL Mfg. Co, Vippy Spinpro, Addi Industries, Rachit Prints, Surat Trade.<BR><BR>Quality Snapshot: Excellent management risk is observed at Rachit Prints, while Good management risk is found at Vippy Spinpro, and Average management risk is present at Lambodhara Text., Addi Industries, and Surat Trade. Below Average management risk is noted for Suryalak. Cott., Lovable Lingerie, Globe Enterprise, SEL Mfg. Co, and Loyal Textile. Excellent growth is seen at Rachit Prints, while Good growth is noted at Globe Enterprise, and Average growth is found at Vippy Spinpro and Lambodhara Text., with the rest showing Below Average growth. Capital Structure ratings are Excellent for Vippy Spinpro, Good for Lambodhara Text. and Rachit Prints, while Below Average is observed for Suryalak. Cott., Lovable Lingerie, Globe Enterprise, SEL Mfg. Co, Addi Industries, Surat Trade, and Loyal Textile.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Vippy Spinpro at 0.00%, while the lowest is Lovable Lingerie at -32.24%. Loyal Textile's 1-year return of -30.89% is slightly better than Lovable Lingerie's. Additionally, several peers, including Lambodhara Text., Globe Enterprise, SEL Mfg. Co, and Loyal Textile, have negative six-month returns.

What does Loyal Textile do?

Loyal Textile Mills Ltd is a micro-cap company based in Tamil Nadu that manufactures and exports cotton yarn, fabric, hosiery cloth, and caps. As of March 2026, it reported net sales of 82 Cr and a net loss of 24 Cr.

Overview:<BR>Loyal Textile Mills Ltd is a micro-cap company in the Garments & Apparels industry that manufactures cotton yarn, fabric, hosiery cloth, and caps, and exports its products internationally.<BR><BR>History:<BR>Loyal Textile Mills was incorporated in 1946 and is based in Tamil Nadu. The latest quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot:<BR>Net Sales: 82 Cr (Quarterly Results - Mar 2026) <BR>Net Profit: -24 Cr (Quarterly Results - Mar 2026) <BR>Market cap: INR Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: N/A <BR>Industry P/E: N/A <BR>Dividend Yield: 0.00% <BR>Debt Equity: 0.00 <BR>Return on Equity: 0.00% <BR>Price to Book: 0.00<BR><BR>Contact Details:<BR>Address: 21/4 Mill Street, Kovilpatti, Tamil Nadu: 628501 <BR>Tel: 91-4632-220001 <BR>Email: investors@loyaltextiles.com <BR>Website: http://www.loyaltextiles.com

Should I buy, sell or hold Loyal Textile Mills Ltd?

Are Loyal Textile Mills Ltd latest results good or bad?

Loyal Textile Mills Ltd's latest results are poor, reporting a consolidated net loss of ₹12.21 crores for Q3 FY26 and a 32.10% decline in revenue year-on-year. Despite a slight improvement in operating margin, the company continues to face significant challenges, including high raw material costs and low demand.

Loyal Textile Mills Ltd's latest results indicate a challenging financial situation. The company reported a consolidated net loss of ₹12.21 crores for Q3 FY26, which, while representing a smaller loss compared to the previous quarter, still reflects ongoing struggles. Revenue for the quarter was ₹105.38 crores, marking a significant year-on-year decline of 32.10%, which is concerning as it indicates a substantial drop in sales.<BR><BR>On a slightly positive note, the operating margin improved from -4.05% in the previous quarter to -1.86%, suggesting some success in cost management. However, the overall financial performance remains weak, with persistent losses and a lack of institutional investor interest, as indicated by zero holdings from foreign institutional investors and mutual funds.<BR><BR>The company faces structural challenges in a competitive market, with elevated raw material costs and subdued demand impacting its operations. Given these factors, the results can be characterized as poor, highlighting the need for significant improvements to return to profitability.

When is the next results date for Loyal Textile Mills Ltd?

The next results date for Loyal Textile Mills Ltd is 11 February 2026.

The next results date for Loyal Textile Mills Ltd is scheduled for 11 February 2026.

How has been the historical performance of Loyal Textile?

Loyal Textile has experienced a significant decline in financial performance, with net sales dropping from 1,767.43 crore in March 2022 to 682.15 crore in March 2025, resulting in negative operating profit and worsening profitability metrics. Despite improved cash flow from operations, the company faced liquidity challenges, ending with no cash and cash equivalents.

Answer:<BR>The historical performance of Loyal Textile has shown significant fluctuations over the years, particularly in net sales and profitability. In March 2025, net sales dropped to 682.15 crore from 939.19 crore in March 2024 and 1,402.89 crore in March 2023, reflecting a downward trend from 1,767.43 crore in March 2022. Total operating income followed a similar pattern, decreasing to 682.15 crore in March 2025 from 939.19 crore in March 2024. The company's total expenditure also decreased to 760.07 crore in March 2025, down from 981.74 crore in March 2024, but the operating profit (PBDIT) turned negative at -69.62 crore in March 2025 compared to a positive 29.53 crore in March 2024. This decline in profitability is mirrored in the profit before tax, which fell to -87.40 crore in March 2025 from -61.11 crore in March 2024, and profit after tax, which was -59.08 crore in March 2025 compared to -44.70 crore in March 2024. The earnings per share (EPS) also reflected this downturn, showing -106.31 in March 2025 versus -81.95 in March 2024. On the balance sheet, total assets decreased to 810.25 crore in March 2025 from 1,114.20 crore in March 2024, while total liabilities also fell to 810.25 crore in March 2025 from 1,114.20 crore in March 2024. Cash flow from operating activities improved to 147.00 crore in March 2025 from 106.00 crore in March 2024, but cash and cash equivalents dropped to 0.00 crore by March 2025.<BR><BR>Breakdown:<BR>Loyal Textile's financial performance has experienced a notable decline in recent years, particularly in net sales, which fell from 1,767.43 crore in March 2022 to 682.15 crore in March 2025. This decline in revenue has led to a significant drop in operating profit, which turned negative in March 2025 at -69.62 crore, down from a positive figure of 29.53 crore in March 2024. The company's profitability metrics, including profit before tax and profit after tax, also worsened, with figures of -87.40 crore and -59.08 crore respectively in March 2025. The balance sheet reflects a decrease in total assets to 810.25 crore in March 2025, alongside a corresponding reduction in total liabilities. Despite a positive cash flow from operating activities of 147.00 crore in March 2025, the company ended the period with no cash and cash equivalents, indicating liquidity challenges. Overall, Loyal Textile's financial trajectory shows a concerning trend of declining sales and profitability, alongside significant shifts in asset and liability management.

How big is Loyal Textile?

As of 24th July, Loyal Textile Mills Ltd has a market capitalization of 173.00 Cr, with net sales of 682.15 Cr and a net loss of 51.24 Cr over the latest four quarters. The balance sheet for March 2024 shows shareholder's funds of 321.10 Cr and total assets of 1,114.13 Cr.

As of 24th July, Loyal Textile Mills Ltd has a market capitalization of 173.00 Cr, which classifies it as a Micro Cap company.<BR><BR>For the latest four quarters, the company reported net sales of 682.15 Cr. However, it experienced a loss of 51.24 Cr in net profit during the same period.<BR><BR>The latest annual period for the balance sheet is March 2024, showing shareholder's funds of 321.10 Cr and total assets amounting to 1,114.13 Cr.

Is Loyal Textile overvalued or undervalued?

As of May 30, 2023, Loyal Textile's valuation has shifted from very attractive to risky due to troubling financial ratios, including a PE ratio of -1.36 and an EV to EBITDA of -7.12, indicating it is overvalued compared to peers like K P R Mill Ltd and Trident, and has underperformed with a year-to-date return of -15.75%.

As of 30 May 2023, the valuation grade for Loyal Textile has moved from very attractive to risky, indicating a significant shift in its financial health and market perception. The company is currently deemed overvalued, primarily due to its troubling financial ratios, including a PE ratio of -1.36, an EV to EBITDA of -7.12, and a ROE of -39.71%. These figures suggest that the company is not generating sufficient earnings relative to its valuation, raising concerns about its sustainability.<BR><BR>In comparison to its peers, Loyal Textile's financial metrics starkly contrast with those of K P R Mill Ltd, which has a PE ratio of 47.51, and Trident, with a PE ratio of 42.6. This highlights the significant disparity in valuation and performance within the industry. Additionally, Loyal Textile's recent stock performance has been poor, with a year-to-date return of -15.75%, compared to a 5.62% gain in the Sensex, further reinforcing the notion that the stock is overvalued in its current state.

What is the technical trend for Loyal Textile?

As of April 17, 2025, Loyal Textile's technical trend is mildly bearish, influenced by a bearish weekly RSI and daily moving averages, despite some bullish indicators on the weekly charts.

As of 17 April 2025, the technical trend for Loyal Textile has changed from bearish to mildly bearish. The weekly MACD is mildly bullish, while the monthly MACD remains bearish, indicating mixed signals across time frames. The weekly RSI is bearish, suggesting downward momentum, but the monthly RSI shows no signal. Bollinger Bands indicate a bullish stance on the weekly chart but are mildly bearish on the monthly. Daily moving averages are mildly bearish, reinforcing the short-term negative outlook. The KST shows a mildly bullish trend on the weekly but is bearish monthly, while the OBV is mildly bullish across both time frames. Overall, the current technical stance is mildly bearish, driven primarily by the bearish weekly RSI and daily moving averages, despite some bullish indicators on the weekly charts.

Who are the top shareholders of the Loyal Textile?

The top shareholders of Loyal Textile are Madurai Tara Traders Private Limited with 16.13%, followed by public shareholder Mohan Gupta at 2.8%. Individual investors own a combined 20.83%, with no holdings from mutual funds or foreign institutional investors.

The top shareholders of Loyal Textile include Madurai Tara Traders Private Limited, which holds the largest stake at 16.13%. The highest public shareholder is Mohan Gupta, with a holding of 2.8%. Additionally, individual investors collectively own 20.83% of the company. There are currently no holdings from mutual funds or foreign institutional investors.

Has Loyal Textile declared dividend?

Loyal Textile Mills Ltd has declared a 100% dividend (₹10 per share) with an ex-date of September 14, 2022. However, the company has experienced significant price declines over various periods, resulting in a total return of -44.49% over one year and no dividend yield.

Loyal Textile Mills Ltd has declared a 100% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 100%<BR>- Amount per share: 10<BR>- Ex-date: 14 Sep 22<BR><BR>Dividend Yield: 0%<BR><BR>Total Returns by Period:<BR>In the 6-month period, the price return was -8.02%, the dividend return was 0%, resulting in a total return of -8.02%.<BR><BR>In the 1-year period, the price return was -44.49%, the dividend return was 0%, leading to a total return of -44.49%.<BR><BR>Over 2 years, the price return was -54.1%, with a dividend return of 0%, resulting in a total return of -54.1%.<BR><BR>For the 3-year period, the price return was 0%, the dividend return was 0%, and the total return was 0.0%.<BR><BR>In the 4-year period, the price return was 0%, the dividend return was 0%, yielding a total return of 0.0%.<BR><BR>Over the 5-year period, the price return was 0%, the dividend return was 0%, resulting in a total return of 0.0%.<BR><BR>Overall, while Loyal Textile Mills Ltd has declared a dividend, the total returns over various periods indicate significant declines in price returns, with no dividends contributing to returns in the longer term. The lack of dividend yield suggests that the dividend declared has not positively impacted the overall financial performance in recent periods.