Celebrity Fashions Limited (CELEBRITY) AI Stock Analysis

• Market Cap: ₹547.85M
• Dividend Yield: N/A
• Average Volume (3M): 7.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• 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: ₹7.50 ▼(-17.13% Downside)

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

Operating cash generation

Sustaining positive operating cash flow despite accounting losses shows the business converts order volumes into cash. This provides a durable liquidity cushion, helps meet working capital and supplier needs, and reduces near-term reliance on external financing while repositioning operations.

Diversified B2B revenue channels

Exposure to both domestic and export B2B channels and bundled value-added services (sampling, finishing, development) supports diversified demand sources and deeper client relationships. These structural capabilities can stabilize order flow and command higher margins over multiple quarters.

Manufacturing scale and capacity

A sizeable workforce and manufacturing footprint indicate scale to handle larger contracts and seasonal volume swings. Scale enables fixed-cost absorption, operational continuity, and quicker ramp-up if demand recovers, supporting durable revenue recovery potential versus very small operators.

Negative Factors

Severe revenue decline

A greater-than-50% drop in revenue signals loss of orders or market share, reducing fixed-cost absorption and making cash flows and margins highly sensitive to volume recovery. Restoring volumes may take multiple quarters and depends on regaining client contracts, a sustained headwind to stability.

High leverage and low equity ratio

Elevated leverage and a thin equity base restrict financial flexibility, raise interest and refinancing risk, and limit capacity to fund capex or absorb shocks. Over the medium term, this balance sheet structure constrains strategic options and increases vulnerability to cost or demand volatility.

Margin deterioration and negative profitability

Declining gross margins and a negative net margin point to eroded pricing power or rising input costs and indicate poor operational leverage. Persistently weak margins impede reinvestment and require structural cost reductions or pricing renegotiation to restore sustainable profitability over coming quarters.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.70B	1.65B	3.43B	3.56B	3.25B	2.27B
Gross Profit	798.00M	233.80M	378.10M	1.38B	1.09B	779.70M
EBITDA	-45.30M	-62.20M	196.30M	216.00M	207.80M	57.30M
Net Income	-164.30M	-182.60M	18.40M	61.50M	87.80M	-55.70M
Balance Sheet
Total Assets	0.00	1.47B	1.43B	1.81B	1.81B	1.57B
Cash, Cash Equivalents and Short-Term Investments	63.50M	63.50M	35.80M	64.90M	4.70M	900.00K
Total Debt	0.00	679.10M	671.60M	863.50M	640.20M	620.20M
Total Liabilities	-205.50M	1.26B	1.09B	1.54B	1.66B	1.54B
Stockholders Equity	205.50M	205.50M	339.70M	267.00M	149.80M	36.40M
Cash Flow
Free Cash Flow	0.00	28.60M	283.40M	88.50M	115.40M	-66.80M
Operating Cash Flow	0.00	30.70M	290.80M	146.00M	122.80M	-65.80M
Investing Cash Flow	0.00	-24.90M	-5.90M	-72.40M	-14.80M	22.80M
Financing Cash Flow	0.00	-4.70M	-334.50M	-25.10M	-105.20M	41.50M

Celebrity Fashions Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CELEBRITY, the sentiment is Neutral. The current price of 9.05 is above the 20-day moving average (MA) of 7.92, above the 50-day MA of 8.51, and below the 200-day MA of 11.31, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 81.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:CELEBRITY.

Celebrity Fashions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MONTECARLO	73 Outperform	₹12.62B	12.54	―	2.83%	8.10%	59.25%
ARVIND	69 Neutral	₹97.52B	23.24	―	1.18%	8.84%	41.74%
GOKEX	62 Neutral	₹61.18B	51.48	―	―	22.27%	7.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KITEX	59 Neutral	₹42.98B	41.95	―	0.27%	20.41%	-6.50%
ABFRL	48 Neutral	₹83.66B	-15.17	―	―	-32.83%	31.19%
CELEBRITY	44 Neutral	₹547.85M	-3.34	―	―	-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.