Cantabil Retail India Limited (CANTABIL) AI Stock Analysis

• Market Cap: ₹21.51B
• Dividend Yield: 0.39%
• Average Volume (3M): 4.37K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.30
• Revenue Growth: 19.90%
• EPS Growth: 27.94%
• Country: IN
• Employees: 3,271
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 5.40
• Shares Outstanding: 83,638,040
• 10 Day Avg. Volume: 3,405
• 30 Day Avg. Volume: 4,374
• PEG Ratio: 1.72
• Price to Book (P/B): 5.83
• Price to Sales (P/S): 3.18
• P/FCF Ratio: 22.51
• 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): 10.5
• Revenue Forecast (FY): ₹8.28B

• Rating: 70 Outperform
• Price Target: ₹315.00 ▲(9.24% Upside)
• Action: Upgraded Date: 10/28/25
• Date: Action: Upgraded 10/28/25

Cantabil Retail India Limited's strong financial performance is the primary driver of its score, supported by robust revenue and profit growth. However, technical indicators suggest mixed momentum, and the valuation appears high, which tempers the overall score.

Positive Factors

Revenue Growth

Sustained ~17% revenue growth reflects expanding market penetration and successful product demand. Over 2-6 months this supports scalable sales trends, improves leverage of fixed retail costs, and provides durable capacity to reinvest in stores, inventory and brand building.

High Profit Margins

Very strong gross and operating margins indicate pricing power and efficient sourcing/manufacturing. These structural margin advantages support consistent profitability, buffer against cost inflation, and enable sustained reinvestment and shareholder returns across multiple quarters.

Robust Cash Generation

High free cash flow growth and strong operating cash conversion show durable ability to fund capex, pay down debt or finance franchise expansion without external equity. Cash generation strength underpins financial flexibility and resilience over the medium term.

Negative Factors

Moderate Financial Leverage

A debt-to-equity around 1.05 signals moderate leverage which, while industry-common, limits financial flexibility. Rising interest costs or a sales slowdown could pressure cash flow and free cash deployment, constraining expansion or increasing refinancing risk over several quarters.

Revenue Concentration

Heavy concentration in men's apparel and domestic retail narrows market diversification. Structural shifts in consumer preferences or region-specific slowdowns disproportionately impact sales and margins, increasing business-cycle sensitivity over the next 2-6 months.

Inventory & Franchise Mix Risks

Seasonal apparel demand and inventory cycles create risk of markdowns and working capital strain. Franchise-heavy expansion can dilute per-store margins and raise execution risk, making profitability and cash conversion more sensitive during expansion phases.

Cantabil Retail India Limited Business Overview & Revenue Model

Company Description

Cantabil Retail India Limited engages in designing, manufacturing, branding, and retailing apparel and apparel accessories in India. The company offers formal and party-wear, casuals, and ultracasual clothing for men, women, and kids under the Cantabil, Kaneston, Crozo, and Lil Potatoes brands. It manufactures shirts, denim, trousers, business and party wear suits, T-shirts, woollen jackets, pullovers, shorts, jeggings, kurtis, undergarments, ties, belts, socks, caps, handkerchief, and accessories. As of June 27, 2022, it operated 400 stores. The company was incorporated in 1989 and is headquartered in New Delhi, India.

How the Company Makes Money

Cantabil generates revenue primarily through the sales of its clothing and accessory lines across its retail outlets and through online channels. The company's revenue model is predominantly based on direct-to-consumer sales, where customers purchase products from their stores or e-commerce platforms. Key revenue streams include the sale of formal and casual menswear, which constitutes a substantial portion of their offerings. Additionally, Cantabil benefits from strategic partnerships with various retailers and distributors to expand its market reach. Seasonal promotions and marketing campaigns also play a crucial role in driving sales and enhancing brand visibility, contributing positively to its overall earnings.

Cantabil Retail India Limited Financial Statement Overview

Summary

Cantabil Retail India Limited exhibits strong financial performance with impressive revenue growth, robust profit margins, and solid cash flow generation. The balance sheet is stable with a healthy equity position and manageable debt levels.

Income Statement

Cantabil Retail India Limited has demonstrated impressive revenue growth over the years, with a significant 17% increase from 2024 to 2025. The company maintains a strong gross profit margin at 70.3%, reflecting efficient cost management. Net profit margin has also improved to 10.4%, signaling enhanced profitability. EBIT and EBITDA margins are robust at 50.5% and 28.4% respectively, indicating strong operational performance. Overall, the income statement reflects positive growth and profitability trends.

Balance Sheet

The company's balance sheet shows a healthy equity position with an equity ratio of 41.8%, which indicates financial stability. The debt-to-equity ratio is 1.05, suggesting moderate financial leverage which is common in the industry. Return on equity has improved to 19.0%, showcasing efficient use of shareholder funds to generate profits. The balance sheet reflects a solid financial foundation with manageable debt levels and good equity backing.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 43.2%, highlighting the company's ability to generate cash after capital expenditures. The operating cash flow to net income ratio is 2.01, indicating effective cash generation relative to net income. Free cash flow to net income ratio stands at 1.36, underscoring a good balance of cash flow and profitability. Overall, the cash flow statement demonstrates healthy liquidity and cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	7.52B	7.21B	6.16B	5.52B	2.52B	3.38B
Gross Profit	4.68B	5.07B	4.18B	3.88B	587.16M	2.17B
EBITDA	2.24B	2.05B	1.69B	1.68B	754.07M	876.15M
Net Income	781.25M	748.63M	622.23M	672.36M	96.64M	164.29M
Balance Sheet
Total Assets	0.00	9.41B	7.74B	6.13B	4.29B	4.48B
Cash, Cash Equivalents and Short-Term Investments	330.90M	330.90M	351.28M	14.52M	83.17M	40.17M
Total Debt	0.00	4.11B	3.36B	2.86B	2.35B	2.63B
Total Liabilities	-3.93B	5.48B	4.48B	3.92B	3.05B	3.30B
Stockholders Equity	3.93B	3.93B	3.26B	2.21B	1.24B	1.18B
Cash Flow
Free Cash Flow	0.00	1.02B	710.86M	407.27M	585.40M	493.40M
Operating Cash Flow	0.00	1.50B	1.27B	751.29M	665.26M	621.49M
Investing Cash Flow	0.00	-582.00M	-515.74M	-340.97M	-70.44M	-127.74M
Financing Cash Flow	0.00	-1.02B	-414.35M	-428.34M	-552.15M	-478.92M

Cantabil Retail India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 288.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CANTABIL, the sentiment is Negative. The current price of 288.35 is below the 20-day moving average (MA) of 289.31, above the 50-day MA of 282.58, and above the 200-day MA of 261.89, indicating a bearish trend. The MACD of -5.68 indicates Positive momentum. The RSI at 31.69 is Neutral, neither overbought nor oversold. The STOCH value of 6.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CANTABIL.

Cantabil Retail India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANTABIL	70 Outperform	₹21.51B	24.88	―	0.39%	19.90%	27.94%
DOLLAR	69 Neutral	₹15.56B	15.98	―	0.82%	11.71%	14.14%
KKCL	66 Neutral	₹29.96B	22.36	―	0.41%	28.67%	-20.77%
PRECOT	65 Neutral	₹5.22B	19.66	―	0.70%	-8.05%	-23.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RUPA	58 Neutral	₹10.69B	16.45	―	1.82%	0.78%	0.54%
LUXIND	52 Neutral	₹26.62B	25.02	―	0.18%	16.32%	-20.97%

Cantabil Retail India Limited Corporate Events

Cantabil Retail Shares Audio Recording of February 6 Investor Call

Cantabil Retail India Limited has informed the stock exchanges that it has made available an audio recording of its investor call held on February 6, 2026, via a publicly accessible web link. By formally disseminating this recording to both BSE and NSE, the company reinforces its commitment to transparency and timely disclosure, providing investors and market participants with easier access to management discussions that may inform their assessment of the company’s performance and outlook.