Loyal Textile Mills Ltd (LOYALTEX) 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

Jasch Industries

Rel. Chemotex

Fiberweb (India)

Amarjothi Spg.

Bhilwara Spinner

Pion. Embroider.

Loyal Textile

SEL Mfg. Co

Shanti Spintex

Shine Fashions

Cedaar Textile

Why is Loyal Textile Mills Ltd ?

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

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.33
The company has been able to generate a Return on Equity (avg) of 8.54% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

NET SALES(Q) At Rs 106.54 cr has Fallen at -31.4% (vs previous 4Q average)
PAT(Latest six months) At Rs -33.44 cr has Grown at -36.55%
DPR(Y) Lowest at 0.00%

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -30.00%, its profits have fallen by -15%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -30.00% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Loyal Textile for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Loyal Textile

-30.0%

-0.56

53.69%

Sensex

4.7%

0.38

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-11.81%

EBIT Growth (5y)

-222.54%

EBIT to Interest (avg)

0.33

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.26

Sales to Capital Employed (avg)

1.01

Tax Ratio

66.44%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

-14.38%

ROE (avg)

8.54%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.43

EV to EBIT

-4.47

EV to EBITDA

-6.85

EV to Capital Employed

0.75

EV to Sales

0.75

PEG Ratio

Dividend Yield

ROCE (Latest)

-16.71%

ROE (Latest)

-34.54%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

12What is working for the Company

OPERATING CF(Y)

Highest at Rs 147.98 Cr

DEBT-EQUITY RATIO(HY)

Lowest at 1.37 times

PAT(Q)

Highest at Rs -11.85 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 25.90 cr

PBDIT(Q)

Highest at Rs -6.65 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at -6.24%

PBT LESS OI(Q)

Highest at Rs -18.78 cr.

-14What is not working for the Company

NET SALES(Q)

At Rs 106.54 cr has Fallen at -31.4% (vs previous 4Q average

PAT(Latest six months)

At Rs -33.44 cr has Grown at -36.55%

DPR(Y)

Lowest at 0.00%

Loading Valuation Snapshot...

Here's what is working for Loyal Textile

Operating Cash Flow - Annually

Highest at Rs 147.98 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs -11.85 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 1.37 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Profit (PBDIT) - Quarterly

Highest at Rs -6.65 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at -6.24%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs -18.78 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 25.90 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Loyal Textile

Net Sales - Quarterly

At Rs 106.54 cr has Fallen at -31.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 155.37 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 106.54 cr and Fallen

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)