Banswara Syntex Ltd (BANSWRAS) AI Stock Analysis

• Market Cap: ₹3.76B
• Dividend Yield: 0.88%
• Average Volume (3M): 1.64K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.14
• Revenue Growth: 5.59%
• EPS Growth: -5.44%
• Country: IN
• Employees: 13,570
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.09
• Shares Outstanding: 34,232,082
• 10 Day Avg. Volume: 1,825
• 30 Day Avg. Volume: 1,643
• PEG Ratio: -0.50
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -6.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹117.00 ▲(0.91% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

Overall score reflects moderate financial performance (improving operating margins and a stable balance sheet, but volatile revenue and negative recent free cash flow) as the primary driver. Technicals are mixed with a negative MACD and elevated RSI despite trading above shorter-term averages, and valuation is reasonable but not strongly supported by dividend yield.

Positive Factors

Improving gross and EBIT margins

Sustained improvement in gross and EBIT margins signals better cost control and operational efficiency. Over the medium term this supports durable operating profitability, gives management room to invest in value-added fabrics, and helps the company withstand revenue swings while preserving reinvestment capacity.

Relatively stable balance sheet and solid equity ratio

A solid equity ratio and overall stable balance sheet provide financial resilience. This capital strength supports working capital funding, selective capex, and buffers against downturns, reducing reliance on short-term market funding and enabling measured strategic investments over the coming months.

Vertical integration across yarn, fabric and made-ups

Integrated operations from yarn through made-ups plus domestic and export channels enable value capture at multiple stages, pricing flexibility and product-mix management. This structural positioning helps stabilize margins, improve customer retention, and affords the firm options to shift production to higher-value segments over time.

Negative Factors

Volatile revenue and inconsistent net margins

Volatile top-line trends and inconsistent net margins weaken earnings visibility and make long-term planning harder. Persistent revenue swings amplify sensitivity to raw-material cycles and end-market demand, threatening to erode any margin improvements unless the company stabilizes sales mix or secures more predictable contracts.

Recent negative free cash flow

A recent shift to negative free cash flow limits internal funding for capex, working capital and debt service. Over the medium term this raises dependence on external financing or equity, constraining strategic flexibility and increasing vulnerability if credit conditions tighten or if profitability dips again.

Increase in total debt over the years

Rising debt levels increase leverage risk, particularly given the company's volatile revenues and weak recent cash conversion. Higher indebtedness can raise interest costs and refinancing exposure, limiting financial flexibility and elevating the downside if margins or demand deteriorate.

Banswara Syntex Ltd Business Overview & Revenue Model

Company Description

Banswara Syntex Limited engages in the manufacturing, marketing, and sale of textile products in India. The company offers spun synthetic blended, wool, and wool mix yarns; and spun synthetic and worsted, and cotton and linen fabrics, as well as readymade garments, such as trousers, jackets, and waistcoats. It also provides shirting and technical, jacquard, poly/viscose, and knitted fabrics; polyester, viscose, acrylic, wool, lycra, linen, and high twists yarns; yarn and piece dyeing solutions; and fabrics for men's and women's wear, and home textile furnishing fabrics in various blends. In addition, the company offers performance finish fabric; technical fabrics used for high altitude weather and sports wear; and automotive fabrics for trimming interiors of automobile seats and doors. Further, it provides fire retardant fabrics that can be used as curtains, upholstery, drapes, wall paneling, cushion covers, sheets, and as lining for tents, as well as for use in furnishing auditoriums, multiplexes, cinema halls, hotels, railway coaches, airlines, ships and cruise, and buses and coaches. It also exports its products to 50 countries including the United States, the United Kingdom, Canada, Spain, Germany, Japan, France, the United States Emirates, and Turkey. Banswara Syntex Limited was incorporated in 1976 and is headquartered in Mumbai, India.

How the Company Makes Money

Banswara Syntex generates revenue primarily through the sale of synthetic and blended yarns, which are used in various applications across the textile and apparel sectors. The company benefits from multiple revenue streams, including direct sales to manufacturers, distribution through wholesalers, and exports to international markets. Key partnerships with garment manufacturers and retailers enhance its market reach and stability. Additionally, the company invests in research and development to innovate and improve product offerings, which can lead to higher margins and increased sales. The combination of a diverse product portfolio, strategic partnerships, and a focus on quality and customer service contributes significantly to its earnings.

Banswara Syntex Ltd Financial Statement Overview

Summary

Moderate fundamentals: improving gross/EBIT margins and a relatively solid balance sheet are positives, but volatile revenue, inconsistent net margin, and recently negative free cash flow weigh on the score.

Income Statement

The income statement shows mixed results with moderate performance. Gross profit margin and EBIT margin have improved over the years, indicating efficiency in cost management. However, the net profit margin has been inconsistent, and revenue growth has been volatile, with declines in recent years. The company needs to stabilize its revenue trajectory to enhance profitability.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a reasonable debt-to-equity ratio. The equity ratio is solid, indicating a strong capital base. However, the increase in total debt over the years poses a potential risk, suggesting the need for careful debt management. Return on equity has seen fluctuations, pointing to inconsistent profitability.

Cash Flow

Cash flow analysis indicates challenges, with free cash flow turning negative in recent periods. The operating cash flow to net income ratio suggests that cash generation from operations is not fully translating into profitability. While there have been periods of positive free cash flow, sustaining this should be a focus to support future investments and debt repayments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.28B	12.93B	12.42B	14.78B	11.72B	7.77B
Gross Profit	5.98B	6.11B	4.43B	8.49B	1.41B	765.17M
EBITDA	1.12B	1.01B	1.16B	2.12B	1.39B	953.85M
Net Income	196.62M	221.56M	355.41M	1.13B	456.20M	145.11M
Balance Sheet
Total Assets	0.00	11.97B	10.70B	10.69B	8.81B	7.53B
Cash, Cash Equivalents and Short-Term Investments	47.68M	47.68M	158.21M	197.41M	190.72M	108.81M
Total Debt	0.00	4.54B	3.55B	3.73B	2.62B	2.27B
Total Liabilities	-5.59B	6.37B	5.35B	5.60B	4.82B	3.96B
Stockholders Equity	5.59B	5.59B	5.35B	5.09B	3.99B	3.57B
Cash Flow
Free Cash Flow	0.00	-671.47M	446.92M	-832.01M	-53.68M	1.23B
Operating Cash Flow	0.00	772.24M	1.42B	200.86M	526.73M	1.32B
Investing Cash Flow	0.00	-1.37B	-900.76M	-994.42M	-472.08M	-25.72M
Financing Cash Flow	0.00	552.34M	-584.10M	752.14M	48.73M	-1.26B

Banswara Syntex Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 115.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BANSWRAS, the sentiment is Negative. The current price of 115.95 is above the 20-day moving average (MA) of 114.65, above the 50-day MA of 111.47, and below the 200-day MA of 126.70, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 31.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BANSWRAS.

Banswara Syntex Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORBTEXP	71 Outperform	₹4.31B	19.34	―	―	13.84%	4.13%
NAHARINDUS	66 Neutral	₹3.99B	20.40	―	―	7.04%	91.00%
NDL	65 Neutral	₹3.53B	35.76	―	―	45.69%	-26.26%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BANSWRAS	62 Neutral	₹3.76B	7.04	―	0.88%	5.59%	-5.44%
DONEAR	57 Neutral	₹4.73B	9.80	―	0.21%	9.35%	-20.51%
VARDMNPOLY	46 Neutral	₹3.91B	497.66	―	―	5.66%	―

Banswara Syntex Ltd Corporate Events

India Ratings Affirms Banswara Syntex at ‘IND A/Negative’ Amid Debt-Funded Modernisation Drive

India Ratings and Research has affirmed Banswara Syntex Ltd’s existing bank loan facilities at ‘IND A/Negative/IND A1’ and its fixed deposit programme at ‘IND A/Negative’, while also assigning the same ratings to an additional INR 513.2 million in bank loan facilities and noting that the fixed deposit limit has been reduced to INR 300 million from INR 400 million. The Negative outlook reflects expectations that Banswara Syntex’s credit metrics will remain stretched in the medium term due to sizeable debt-funded modernisation capex and weaker-than-expected operational performance in the first half of FY26, even as the agency anticipates improvement in the second half of FY26 and beyond, driven by higher contributions from value-added products, operational efficiencies, cost optimisation, and future savings from renewable power initiatives; at the same time, the ratings factor in the company’s strong business profile and adequate liquidity, with elevated leverage expected to peak in FY26 and gradually improve from FY27, amid ongoing exposure to price volatility, foreign exchange movements and inherent textile industry risks.

Banswara Syntex Closes Trading Window Ahead of December-Quarter Results

Banswara Syntex Limited has announced the closure of its trading window for promoters, directors, key managerial personnel, designated employees, connected persons, and their immediate relatives starting 1 January 2026, in line with SEBI’s Prohibition of Insider Trading Regulations, 2015. The window will reopen 48 hours after the board approves and discloses the financial results for the quarter ended 31 December 2025, with the board meeting date to be communicated later, underscoring the company’s adherence to regulatory norms on unpublished price-sensitive information and signaling forthcoming quarterly earnings that stakeholders will be watching closely.