Bhandari Hosiery Exports Ltd (BHANDARI) AI Stock Analysis

• Market Cap: ₹1.11B
• Dividend Yield: 0.51%
• Average Volume (3M): 36.28K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.13
• Revenue Growth: 2.92%
• EPS Growth: -0.09%
• Country: IN
• Employees: 339
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.08
• Shares Outstanding: 432,089,400
• 10 Day Avg. Volume: 23,916
• 30 Day Avg. Volume: 36,284
• PEG Ratio: -0.70
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -4.48
• 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: 59 Neutral
• Price Target: ₹2.50 ▼(-40.19% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven mainly by stable financial performance with improving margins, offset by weak cash-flow quality (negative free cash flow) and leverage concerns. Technicals meaningfully reduce the rating due to a clear downtrend and bearish momentum. Valuation is reasonable but the dividend yield offers limited support.

Positive Factors

Improving net margins

Net margin improvement to ~2.8% shows the company is converting more sales into profit, reflecting better cost control and pricing. Sustained margin gains increase retained earnings for reinvestment, strengthen resilience to cyclical demand, and improve long-term cash generation potential.

Healthy operating efficiency

Consistently healthy EBIT/EBITDA margins indicate efficient manufacturing and cost structure, a durable advantage in textiles where scale and process control matter. This efficiency supports competitive pricing, preserves operating cashflow, and underpins sustainable profitability across cycles.

Stronger equity base

An improved debt-to-equity and a stronger equity base enhance financial stability and reduce refinancing strain. Over months this fosters better access to capital, lowers default risk, and provides flexibility to fund working capital or selective capex without over-reliance on expensive external debt.

Negative Factors

Negative free cash flow

Persistent negative free cash flow restricts the company’s ability to pay down debt, invest in capacity, or return cash to shareholders without external funding. Even with decent operating cash, structural FCF shortfalls can force reliance on borrowings and weaken balance-sheet resilience over months.

High absolute debt

Elevated absolute debt levels increase interest and refinancing risk, reducing financial flexibility. In a capital-intensive and FX-exposed export business, high debt magnifies vulnerability to rate rises or demand shocks and can constrain strategic investments for durable growth.

Thin net profitability

A net margin near 2.8% remains thin for absorbing raw-material cost swings or pricing pressure. Low absolute profitability limits internal funding for capex and working capital, making earnings and cash generation sensitive to modest operational disruptions over the medium term.

Bhandari Hosiery Exports Ltd Business Overview & Revenue Model

Company Description

Bhandari Hosiery Exports Limited manufactures and sells textile products in India. The company manufactures and exports knitted hosiery garments, such as T-shirts, pullovers, sweatshirts, bermudas, polo shirts, track suits, pajamas, lowers, ladies knitted tops with embroidery and prints, etc.; and manufactures, processes, and trades in dyed and non-dyed fabrics. It exports its products to the United States, Germany, Dubai, the United Kingdom, and the European Union. The company was incorporated in 1993 and is based in Ludhiana, India.

How the Company Makes Money

BHANDARI makes money primarily by selling hosiery/knitwear and garment products to customers, with revenue recognized from the manufacture and export/sale of finished textile and apparel goods. Its key revenue stream is proceeds from these product sales (including export sales where applicable), which are driven by order volumes, product mix, realized pricing, and timely fulfillment. Beyond this high-level model, specific disclosures such as customer concentration, contract structure (e.g., FOB/CIF), brand vs. private-label split, long-term supply agreements, licensing/royalty income, or named strategic partnerships are null.

Bhandari Hosiery Exports Ltd Financial Statement Overview

Summary

Financials are stable with improving profitability (net margin ~2.8%) and healthy operating efficiency (EBIT/EBITDA margins). Balance sheet shows a stronger equity base and improved debt-to-equity, but absolute debt remains a risk. Cash flow is the key weak spot with recent negative free cash flow despite relatively solid operating cash flow.

Income Statement

The company shows a consistent revenue base with a slight growth trajectory. Gross Profit Margin remains stable around 21.5%, indicating good control over production costs. Net Profit Margin improved to approximately 2.8% in the latest period, showing enhanced profitability. EBIT and EBITDA margins are healthy, implying efficient operational management.

Balance Sheet

The Debt-to-Equity ratio has improved, showing a better balance between debt and equity. The company has strengthened its equity base over the years, enhancing financial stability. The Equity Ratio is robust, reflecting a solid asset base supported by equity. However, high total debt remains a concern, indicating potential leverage risks.

Cash Flow

The company has faced challenges in generating positive free cash flow, with recent negative figures. However, the operating cash flow is relatively strong compared to net income, indicating efficient cash generation from operations. The Free Cash Flow to Net Income ratio shows room for improvement.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.83B	2.79B	2.67B	2.83B	2.83B	2.26B
Gross Profit	759.26M	598.03M	661.28M	708.07M	483.91M	308.44M
EBITDA	283.44M	284.18M	246.21M	234.40M	226.56M	182.72M
Net Income	83.60M	77.13M	65.33M	65.06M	62.70M	16.69M
Balance Sheet
Total Assets	2.83B	2.76B	2.51B	2.17B	2.18B	2.07B
Cash, Cash Equivalents and Short-Term Investments	93.37M	4.29M	6.38M	15.01M	28.54M	40.07M
Total Debt	1.02B	1.02B	1.22B	1.04B	1.14B	1.14B
Total Liabilities	1.26B	1.22B	1.51B	1.30B	1.36B	1.32B
Stockholders Equity	1.56B	1.53B	995.87M	871.23M	815.54M	754.30M
Cash Flow
Free Cash Flow	10.24M	-270.08M	-152.78M	90.56M	15.08M	-31.51M
Operating Cash Flow	27.99M	-251.51M	159.64M	121.10M	29.98M	-1.98M
Investing Cash Flow	-16.77M	-23.38M	-292.30M	-26.97M	12.06M	-18.51M
Financing Cash Flow	-8.91M	272.80M	124.03M	-90.43M	-50.83M	33.38M

Bhandari Hosiery Exports Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BHANDARI, the sentiment is Negative. The current price of 4.18 is above the 20-day moving average (MA) of 2.78, above the 50-day MA of 3.21, and above the 200-day MA of 3.98, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 30.72 is Neutral, neither overbought nor oversold. The STOCH value of 29.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BHANDARI.

Bhandari Hosiery Exports Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIBERWEB	74 Outperform	₹1.02B	6.65	―	―	19.37%	40.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BHANDARI	59 Neutral	₹1.11B	10.89	―	0.51%	2.92%	-0.09%
PIONEEREMB	57 Neutral	₹774.80M	-26.56	―	―	-4.46%	-77.27%
LOYALTEX	56 Neutral	₹953.17M	-1.31	―	―	-30.97%	80.99%
ZENITHEXPO	55 Neutral	₹1.02B	172.50	―	―	8.45%	―
SALONA	52 Neutral	₹1.39B	104.73	―	0.36%	-13.03%	-81.40%

Bhandari Hosiery Exports Ltd Corporate Events

Bhandari Hosiery Exports Board Clears Rs 49.3 Crore Rights Issue

Bhandari Hosiery Exports Ltd’s board has approved a rights issue to raise Rs 49.30 crore in long-term equity, primarily to strengthen working capital, reduce long-term debt, and fund general corporate purposes, alongside meeting issue-related expenses. The board has designated BSE as the lead stock exchange for the issue and set up a three-member Rights Issue Committee, supported by the company’s CFO and compliance team, to oversee key aspects such as investor allotments, appointment of intermediaries and a monitoring agency, and approval of the draft offer document, with the committee scheduled to meet on 14 January 2026 to advance regulatory approvals and execution of the capital-raising plan.

Bhandari Hosiery Board Clears Rs 49.3 Crore Rights Issue, Sets Up Dedicated Committee

Bhandari Hosiery Exports Ltd’s board has approved raising Rs 49.30 crore through a rights issue to strengthen long-term working capital, reduce long-term debt, and fund general corporate purposes and issue-related expenses. The board has resolved to designate BSE as the lead stock exchange for the issue, and set up a three-member Rights Issue Committee, supported by the CFO and company secretary, to handle key decisions including appointment of intermediaries, monitoring agency, and approval of the draft letter of offer, with the committee scheduled to meet on 14 January 2026 to move the process forward.

Bhandari Hosiery Board to Weigh Rs 50 Crore Rights Issue for Working Capital

Bhandari Hosiery Exports Limited has announced that its board of directors will meet on 2 January 2026 to consider raising up to Rs 50 crore in long-term equity through a rights issue aimed at strengthening the company’s working capital. The board will also deliberate on forming an empowered Rights Issue Committee to oversee execution of the issue, set its terms, and appoint intermediaries in line with the updated SEBI regulations on rights issues, signaling a move to bolster liquidity and support ongoing operations and growth plans.