Celebrity Fashions Limited (CELEBRITY) AI Stock Analysis

• Market Cap: ₹455.94M
• Dividend Yield: N/A
• Average Volume (3M): 7.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -28.56%
• EPS Growth: -16.49%
• Country: IN
• Employees: 2,497
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.57
• Shares Outstanding: 59,678,413
• 10 Day Avg. Volume: 7,554
• 30 Day Avg. Volume: 7,651
• PEG Ratio: <0.01
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 21.47
• 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: 44 Neutral
• Price Target: ₹9.00 ▼(-0.55% Downside)
• Action: Reiterated Date: 01/29/26
• Date: Action: Reiterated 01/29/26

The score is driven primarily by weak financial performance (sharp revenue decline, margin compression, net losses, and high leverage). Technicals add further pressure with a clear downtrend and negative MACD, while valuation is also challenged by negative earnings (negative P/E) and no dividend yield data to offset risk.

Positive Factors

Positive operating cash flow

Despite reported net losses, Celebrity generated positive operating cash flow and slightly improved free cash flow (+0.9% YoY). Reliable cash generation supports working capital, funds near-term operations and maintenance, and reduces immediate reliance on external financing while structural recovery occurs.

Domestic & export manufacturing

The business model centers on order-driven garment manufacturing for domestic and export B2B clients. This diversified channel exposure and focus on supplier-to-brands relationships reduces retail inventory risk and provides structural demand avenues across geographies when market conditions normalize.

Manufacturing scale (workforce)

A workforce of ~2,497 indicates meaningful manufacturing scale and operational capacity to service large brand contracts. Scale supports fixed-cost absorption, operational know-how, and the ability to ramp production, which benefits margin recovery and contract competitiveness over the medium term.

Negative Factors

Sharp revenue decline

A 51.5% year-over-year revenue drop suggests lost orders or severe demand deterioration. Such a dramatic decline damages capacity utilization and fixed-cost coverage, making sustainable margin recovery and profitability contingent on regaining large contracts or structural market demand improvements.

Margin compression and losses

Gross margin compressed to 14.1% while net margin is negative (-11%), indicating the business is currently unprofitable after costs and expenses. Persistent low margins reduce reinvestment capacity, heighten vulnerability to input cost swings, and signal either pricing pressure or operational inefficiencies.

High leverage and weak equity

A debt-to-equity ratio of 3.3 and an equity ratio near 14% reflect heavy leverage and a weakened capital base. High indebtedness raises refinancing and interest-service risk, constrains strategic investments, and amplifies downside if cash generation deteriorates further.

Celebrity Fashions Limited Business Overview & Revenue Model

Company Description

Celebrity Fashions Limited manufactures and sells textile garments and clothing accessories in India. The company also exports its products. Celebrity Fashions Limited was incorporated in 1988 and is based in Chennai, India.

How the Company Makes Money

CELEBRITY generates revenue through multiple streams, including direct sales through its brick-and-mortar retail stores and e-commerce platforms. The company also engages in wholesale distribution, partnering with other retailers to expand its market reach. Key revenue streams include the sale of apparel and accessories, seasonal collections, and collaborations with celebrity influencers for exclusive lines. Additionally, CELEBRITY benefits from strategic partnerships with sustainable fabric suppliers and technology firms, enhancing product offerings and operational efficiency, which contribute significantly to its overall earnings.

Celebrity Fashions Limited Financial Statement Overview

Summary

Weak fundamentals: revenue fell 51.5% YoY, gross margin declined to 14.1%, and net income turned negative (net margin -11%). The balance sheet is highly leveraged (debt-to-equity 3.3) with low equity ratio (14%) and negative ROE, partly offset by positive operating cash flow and slightly improved free cash flow (+0.9% YoY).

Income Statement

Celebrity Fashions Limited shows declining revenue and profitability. The gross profit margin decreased significantly from the previous year, now at 14.1%, while net income turned negative, resulting in a net profit margin of -11%. This signals declining operational efficiency and profitability. The company saw a sharp decline in revenue by 51.5% compared to the previous year, indicating potential demand issues.

Balance Sheet

The company's balance sheet is highly leveraged with a debt-to-equity ratio of 3.3. Stockholder's equity significantly decreased, impacting the equity ratio which stands at 14%. Return on equity is negative due to the net loss, suggesting poor profitability relative to shareholders' investment.

Cash Flow

Despite negative net income, Celebrity Fashions Limited managed to maintain positive operating cash flow, resulting in an operating cash flow to net income ratio of -0.17. The free cash flow showed a slight improvement, growing by 0.9% year-over-year, indicating some operational efficiency despite the negative earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.73B	1.65B	3.43B	3.56B	3.25B	2.27B
Gross Profit	629.10M	233.80M	378.10M	1.38B	1.09B	779.70M
EBITDA	-46.30M	-62.20M	196.30M	216.00M	207.80M	57.30M
Net Income	-162.00M	-182.60M	18.40M	61.50M	87.80M	-55.70M
Balance Sheet
Total Assets	1.10B	1.47B	1.43B	1.81B	1.81B	1.57B
Cash, Cash Equivalents and Short-Term Investments	143.60M	63.50M	35.80M	64.90M	4.70M	900.00K
Total Debt	557.80M	679.10M	671.60M	863.50M	640.20M	620.20M
Total Liabilities	1.01B	1.26B	1.09B	1.54B	1.66B	1.54B
Stockholders Equity	98.70M	205.50M	339.70M	267.00M	149.80M	36.40M
Cash Flow
Free Cash Flow	228.80M	28.60M	283.40M	88.50M	115.40M	-66.80M
Operating Cash Flow	230.20M	30.70M	290.80M	146.00M	122.80M	-65.80M
Investing Cash Flow	-80.40M	-24.90M	-5.90M	-72.40M	-14.80M	22.80M
Financing Cash Flow	-149.70M	-4.70M	-334.50M	-25.10M	-105.20M	41.50M

Celebrity Fashions Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.05
• 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:CELEBRITY, the sentiment is Negative. The current price of 9.05 is above the 20-day moving average (MA) of 7.76, above the 50-day MA of 8.05, and below the 200-day MA of 10.74, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 22.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CELEBRITY.

Celebrity Fashions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARVIND	69 Neutral	₹95.78B	21.31	―	1.18%	8.84%	41.74%
MONTECARLO	64 Neutral	₹10.82B	3.10	―	2.83%	8.10%	59.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KITEX	59 Neutral	₹32.91B	-96.49	―	0.27%	20.41%	-6.50%
GOKEX	56 Neutral	₹43.68B	92.98	―	―	22.27%	7.09%
ABFRL	48 Neutral	₹72.01B	-15.34	―	―	-32.83%	31.19%
CELEBRITY	44 Neutral	₹455.94M	-3.93	―	―	-28.56%	-16.49%

Celebrity Fashions Limited Corporate Events

Celebrity Fashions Clears Capital Reclassification and Preferential Equity Issue

Celebrity Fashions Limited’s board has approved a reclassification of its authorised share capital by converting its 1% cumulative redeemable preference shares into equity shares, along with the corresponding amendment to the capital clause of its Memorandum of Association, subject to shareholder approval. The board has also cleared a preferential issue of 4,869,932 fully paid equity shares on a private placement basis to promoters, a director and a public category body corporate, and approved a postal ballot process to seek shareholder consent for both the capital reclassification and the new share issue, signalling a strategic move to strengthen its equity base and potentially improve capital structure and ownership alignment.