Spentex Industries Limited (CLCIND) AI Stock Analysis

• Market Cap: ₹112.99M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): -0.24
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): -4.74
• Shares Outstanding: 10,394,680
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: -0.18
• Price to Book (P/B): 29.08
• Price to Sales (P/S): 4.72
• P/FCF Ratio: -10.26
• 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: 40 Underperform
• Price Target: ₹10.50 ▲(275.00% Upside)
• Action: Downgraded Date: 01/31/26
• Date: Action: Downgraded 01/31/26

Overall score is low due to weak financial performance (large losses, high leverage, and material cash burn) and very bearish technical signals (deeply negative MACD and price far below key moving averages). Valuation provides limited support because the negative P/E reflects unprofitable operations and dividend yield is unavailable.

Positive Factors

Revenue Rebound

A recovery to 616.0M in FY2025 shows the business can generate meaningful top-line sales after prior volatility. If sustained, this revenue base enables the firm to leverage fixed manufacturing capacity, improve utilization, and create a platform for margin recovery and scale-driven stability over months.

Material Asset Base

A ~1.03B asset base provides tangible operational capacity and collateral. Over a multi-month horizon this footprint supports manufacturing scale, potential working-capital restructuring, or asset monetization options that can be used to shore up liquidity or fund turnaround investments without relying solely on equity issuance.

Strong Reported Revenue Growth Rate

An exceptionally high reported revenue growth rate signals rapid top-line expansion from a low base. Sustained organic growth of this magnitude would materially improve operating leverage, support higher absolute gross profit contribution, and create a path to normalize margins if the company can maintain customer demand and scale production.

Negative Factors

High Leverage and Eroded Equity

Debt of 546.1M versus equity of 100.1M (D/E ~5.46x) materially reduces financial flexibility and raises default risk. Over a 2–6 month horizon, elevated leverage constrains investment, increases financing costs, and limits options for absorbing further operational setbacks without restructuring or external capital injections.

Negative Cash Generation

Persistent operating cash outflows (-217.5M) and negative free cash flow (-283.8M) indicate the business is consuming liquidity rather than funding itself. This cash burn risks disrupting operations, forces reliance on external funding or supplier concessions, and undermines the company's ability to execute strategic plans without clear near-term remedial actions.

Thin Gross Margins and Large Net Loss

A ~2.9% gross margin leaves little buffer to cover fixed costs; combined with a -462.5M net loss, this erodes equity and signals structural cost or pricing weakness. Unless the company materially improves product margins or cost structure, losses will likely persist and restrain any sustainable recovery over the coming months.

Spentex Industries Limited Business Overview & Revenue Model

Company Description

CLC Industries Limited, a textile company, manufactures and trades in synthetic and cotton yarns in India and internationally. It offers hosiery, weaving, carpet, and industrial yarns; sewing threads; and flat knitting products for use in home textiles and garments industry applications. The company was formerly known as Spentex Industries Limited and changed its name to CLC Industries Limited in July 2018. CLC Industries Limited was incorporated in 1991 and is based in New Delhi, India.

How the Company Makes Money

Spentex Industries Limited Financial Statement Overview

Summary

Financial statements indicate severe stress: FY2025 posted a large net loss (-462.5M) on thin gross margin (~2.9%), leverage is high (debt 546.1M vs equity 100.1M; ~5.46x debt-to-equity), and cash burn is significant (operating cash flow -217.5M; free cash flow -283.8M), implying limited financial flexibility.

Income Statement

Profitability is deeply negative. In FY2025, revenue rebounded to 616.0M, but gross margin remained very thin (~2.9%) and the company posted a large net loss (-462.5M), implying severe cost pressure and weak operating leverage. Prior years show reported revenue at 0 with continuing losses, limiting visibility on true trend and highlighting volatility/quality issues in the reported revenue line.

Balance Sheet

Leverage and capital structure risk increased materially in FY2025: debt rose to 546.1M while equity fell to 100.1M, pushing debt-to-equity to ~5.46x. Returns to shareholders are sharply negative (ROE ~-4.62), indicating losses are eroding the capital base. While total assets are ~1.03B, the thin equity cushion leaves limited room for further operating shocks.

Cash Flow

Cash generation is weak and worsening: FY2025 operating cash flow was -217.5M and free cash flow was -283.8M, meaning the business is consuming cash rather than funding itself. Negative operating cash flow alongside large net losses suggests ongoing strain on liquidity and likely reliance on external funding or working-capital relief to sustain operations.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Spentex Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SURYALAXMI	55 Neutral	₹1.05B	20.50	―	―	4.60%	226.64%
GANGOTRI	43 Neutral	₹20.22M	-29.95	―	―	―	―
CLCIND	40 Underperform	₹112.99M	-0.19	―	―	―	―