Cantabil Retail India Limited (CANTABIL) AI Stock Analysis

• Market Cap: ₹24.42B
• Dividend Yield: 0.39%
• Average Volume (3M): 4.37K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 1.34
• Revenue Growth: 19.90%
• EPS Growth: 27.94%
• Country: IN
• Employees: 3,271
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.80
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ₹321.00 ▲(11.32% Upside)

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

Sustained Revenue Growth

Consistent 17% year-over-year revenue growth indicates durable demand and expanding market penetration for Cantabil's apparel lines. Over 2-6 months this supports scale advantages, stronger negotiating power with suppliers, and capacity to reinvest in stores and product development, aiding long-term competitiveness.

High Gross and Operating Margins

Very high gross and EBIT margins reflect strong cost control, pricing power, and efficient manufacturing/merchandising. These structural margins provide durable cushion against cost shocks, fund marketing and store expansion, and underpin sustainable profitability over multiple quarters.

Strong Cash Generation

Robust free cash flow growth and operating cash conversion highlight reliable internal funding for capex, inventory, and shareholder returns. Strong cash generation reduces refinancing needs, supports strategic investments, and enhances resilience to cyclical retail downturns over the medium term.

Negative Factors

Moderate Financial Leverage

A debt-to-equity around 1.05 signals moderate leverage for a retailer. While common in the sector, this level constrains financial flexibility, increases interest expense sensitivity to rate rises, and limits room for opportunistic investments or aggressive buybacks during stress periods.

Retail‑centric Cost Structure

A business model reliant on exclusive brand outlets and store footprint entails fixed lease and staffing costs. Such a retail‑heavy cost base increases operating leverage, making profitability more sensitive to footfall shifts and requiring sustained sales density to justify store economics over time.

Reliance on Seasonal Promotions

Dependence on seasonal promotions to drive sales risks recurring margin compression and inventory markdowns. If promotions become structural to maintain revenue, long‑term gross and net margins could face pressure, reducing the firm's ability to sustainably fund marketing and expansion without eroding profitability.

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	Dec 2025	Dec 2024	Dec 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.52B	7.21B	6.16B	3.83B	5.52B	2.52B
Gross Profit	4.68B	5.07B	4.18B	2.31B	3.88B	587.16M
EBITDA	2.24B	2.05B	1.69B	1.26B	1.68B	754.07M
Net Income	781.25M	748.63M	622.23M	380.55M	672.36M	96.64M
Balance Sheet
Total Assets	0.00	9.41B	7.74B	4.96B	6.13B	4.29B
Cash, Cash Equivalents and Short-Term Investments	330.90M	330.90M	351.28M	32.21M	14.52M	83.17M
Total Debt	0.00	4.11B	3.36B	2.46B	2.86B	2.35B
Total Liabilities	-3.93B	5.48B	4.48B	3.36B	3.92B	3.05B
Stockholders Equity	3.93B	3.93B	3.26B	1.60B	2.21B	1.24B
Cash Flow
Free Cash Flow	0.00	1.02B	710.86M	447.76M	407.27M	585.40M
Operating Cash Flow	0.00	1.50B	1.27B	902.71M	751.29M	665.26M
Investing Cash Flow	0.00	-582.00M	-515.74M	-409.89M	-340.97M	-70.44M
Financing Cash Flow	0.00	-1.02B	-414.35M	-543.71M	-428.34M	-552.15M

Cantabil Retail India Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CANTABIL, the sentiment is Positive. The current price of 288.35 is above the 20-day moving average (MA) of 286.08, above the 50-day MA of 269.95, and above the 200-day MA of 258.07, indicating a bullish trend. The MACD of 4.30 indicates Positive momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 88.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹24.42B	31.17	―	0.39%	19.90%	27.94%
DOLLAR	69 Neutral	₹17.83B	16.86	―	0.82%	11.71%	14.14%
KKCL	66 Neutral	₹28.36B	21.83	―	0.41%	28.67%	-20.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RUPA	58 Neutral	₹11.92B	16.04	―	1.82%	0.78%	0.54%
PRECOT	56 Neutral	₹3.96B	12.66	―	0.70%	-8.05%	-23.39%
LUXIND	52 Neutral	₹28.04B	22.05	―	0.18%	16.32%	-20.97%

Cantabil Retail India Limited Corporate Events

Cantabil Retail India Limited Reports Q2 Financial Results

Cantabil Retail India Limited held its 325th Board Meeting on November 3, 2025, where it approved the standalone unaudited financial results for the quarter and half-year ending September 30, 2025. The company reported a total income of Rs. 17,750.81 lakhs for the quarter, with a net profit after tax of Rs. 675.46 lakhs. The approval of these financial results is crucial for stakeholders as it provides insights into the company’s financial health and operational performance, impacting its market positioning and investor confidence.

Cantabil Retail India Reports Strong Financial Results for September 2025

Cantabil Retail India Limited announced its financial results for the quarter and half-year ending September 30, 2025. The company reported a total income of Rs. 33,853.21 lakhs, with a net profit after tax of Rs. 2,142.66 lakhs for the period. The results indicate a positive financial performance, reflecting the company’s robust operational strategies and market positioning. These financial outcomes are likely to strengthen Cantabil’s standing in the retail sector and provide confidence to its stakeholders.

Cantabil Retail India Limited Reports Strong Financial Growth in H1 FY26

Cantabil Retail India Limited reported a 20% year-over-year increase in revenue for the first half of the fiscal year 2026, reaching ₹335 crores. The company’s profit after tax also rose by 19% to ₹21.4 crores, indicating strong financial performance. The company demonstrated robust same-store growth of 6.7% for the same period, reflecting its solid market positioning and operational efficiency. These results highlight Cantabil’s continued expansion and success in the competitive retail apparel market, potentially benefiting stakeholders through enhanced profitability and market share.

Cantabil Retail India Releases Q2 & H1 FY26 Financial Results

Cantabil Retail India Limited has released its investor presentation detailing the unaudited financial results for the quarter and half-year ending September 30, 2025. This announcement provides stakeholders with insights into the company’s financial performance and strategic positioning, potentially impacting investor confidence and market perception.