Sanathan Textiles Ltd (SANATHAN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kewal Kir.Cloth.

PDS

Jindal Worldwide

Nitin Spinners

Filatex India

Lux Industries

Gokaldas Exports

Arvind Fashions

Sanathan Textile

Alok Industries

Raymond Lifestyl

Why is Sanathan Textiles Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.89%

Poor long term growth as Net Sales has grown by an annual rate of 13.50% and Operating profit at 2.46% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.32 times

Flat results in Jun 26

INTEREST(9M) At Rs 111.38 cr has Grown at 335.59%
OPERATING CF(Y) Lowest at Rs 194.73 Cr
PAT(9M) At Rs 40.62 cr has Grown at -65.65%

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 Sanathan Textile for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sanathan Textile

4.29%

0.13

32.45%

Sensex

-1.64%

-0.12

13.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.50%

EBIT Growth (5y)

2.46%

EBIT to Interest (avg)

7.89

Debt to EBITDA (avg)

3.93

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

1.27

Tax Ratio

37.88%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

14.19%

ROCE (avg)

8.68%

ROE (avg)

6.50%

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

2.17

EV to EBIT

26.13

EV to EBITDA

16.73

EV to Capital Employed

1.68

EV to Sales

1.23

PEG Ratio

Dividend Yield

ROCE (Latest)

5.95%

ROE (Latest)

4.13%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

15What is working for the Company

NET SALES(Q)

At Rs 1,334.74 cr has Grown at 40.1% (vs previous 4Q average

PBT LESS OI(Q)

At Rs 34.73 cr has Grown at 45.6% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 108.08 cr.

PAT(Q)

At Rs 23.82 cr has Grown at 23.2% (vs previous 4Q average

-19What is not working for the Company

INTEREST(9M)

At Rs 111.38 cr has Grown at 335.59%

OPERATING CF(Y)

Lowest at Rs 194.73 Cr

PAT(9M)

At Rs 40.62 cr has Grown at -65.65%

ROCE(HY)

Lowest at 6.22%

DEBT-EQUITY RATIO(HY)

Highest at 0.81 times

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Here's what is working for Sanathan Textile

Net Sales - Quarterly

Highest at Rs 1,334.74 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 1,334.74 cr has Grown at 40.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 952.80 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 34.73 cr has Grown at 45.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 23.85 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 108.08 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 23.82 cr has Grown at 23.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 19.34 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Sanathan Textile

Operating Cash Flow - Annually

Lowest at Rs 194.73 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Interest - Latest six months

At Rs 75.55 cr has Grown at 39.11%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.81 times

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