Kitex Garments Ltd (KITEX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Siyaram Silk

Indo Count Inds.

Arvind Fashions

PDS

City Pulse Multi

Gokaldas Exports

Jindal Worldwide

Sanathan Textile

Lux Industries

Raymond Lifestyl

Kitex Garments

Why is Kitex Garments Ltd ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 7.63% and Operating profit at 3.83% over the last 5 years

With a fall in Net Sales of -43.44%, the company declared Very Negative results in Sep 25

NET SALES(Q) At Rs 122.10 cr has Fallen at -43.44%
OPERATING PROFIT TO INTEREST(Q) Lowest at -1.94 times
PAT(Q) At Rs -19.05 cr has Fallen at -151.0%

With ROCE of 5.1, it has a Very Expensive valuation with a 2.4 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -17.14%, its profits have fallen by -24.1%

Despite the size of the company, domestic mutual funds hold only 0.34% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.10% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -17.14% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kitex Garments for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kitex Garments

-17.14%

-0.30

57.51%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.63%

EBIT Growth (5y)

3.83%

EBIT to Interest (avg)

21.86

Debt to EBITDA (avg)

5.21

Net Debt to Equity (avg)

1.01

Sales to Capital Employed (avg)

0.59

Tax Ratio

33.70%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.50%

ROCE (avg)

10.10%

ROE (avg)

9.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.81

EV to EBIT

47.45

EV to EBITDA

40.56

EV to Capital Employed

2.40

EV to Sales

5.61

PEG Ratio

Dividend Yield

0.25%

ROCE (Latest)

5.06%

ROE (Latest)

7.27%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 5.32 times

-38What is not working for the Company

NET SALES(Q)

At Rs 122.10 cr has Fallen at -43.44%

OPERATING PROFIT TO INTEREST(Q)

Lowest at -1.94 times

PAT(Q)

At Rs -19.05 cr has Fallen at -151.0%

DEBT-EQUITY RATIO(HY)

Highest at 1.14 times

INTEREST(Q)

At Rs 8.24 cr has Grown at 132.77%

PBDIT(Q)

Lowest at Rs -15.97 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at -13.08%

PBT LESS OI(Q)

Lowest at Rs -32.19 cr.

EPS(Q)

Lowest at Rs -0.08

Loading Valuation Snapshot...

Here's what is working for Kitex Garments

Debtors Turnover Ratio- Half Yearly

Highest at 5.32 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Kitex Garments

Net Sales - Quarterly

At Rs 122.10 cr has Fallen at -43.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at -1.94 times and Fallen

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -32.19 cr has Fallen at -168.20%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -19.05 cr has Fallen at -151.0%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 8.24 cr has Grown at 132.77%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs -15.97 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.14 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales - Quarterly

Lowest at Rs 122.10 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Interest - Quarterly

Highest at Rs 8.24 cr

in the last five quarters and Increased by 132.77 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit Margin - Quarterly

Lowest at -13.08%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -32.19 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -0.08

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Non Operating Income - Quarterly

Highest at Rs 12.39 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income