Spentex Industries Limited (CLCIND) AI Stock Analysis

• Market Cap: ₹118.60M
• 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: 24
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Manufacturing - Textiles
• 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: ₹11.00 ▲(292.86% 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 Recovery

A rebound to 616M revenue indicates the company can generate meaningful top-line scale after prior declines. Sustained revenue recovery over months supports operating leverage potential and provides a foundation to stabilize production, supplier relationships, and customer contracts.

Sizable Asset Base

A ~1.03B asset base gives the company tangible capacity to support operations, serve as collateral for financing, or be restructured/monetized in a turnaround. Persisting asset scale is a durable buffer that can be deployed to restore production or secure liquidity.

Lean Operating Footprint

A headcount of 24 signals a very lean core team and lower fixed labor overhead, which can help conserve cash and allow flexible scaling. Over the medium term this supports quicker operational adjustments, outsourcing, or pivoting product mix with limited incremental payroll burden.

Negative Factors

High Leverage

Debt-to-equity of ~5.46x reflects materially elevated leverage that constrains strategic options and increases insolvency risk. High debt amplifies interest and covenant pressure, limits capital allocation flexibility, and raises refinancing risk over the next several months without clear cash generation improvements.

Severe Cash Burn

Persistently negative OCF and FCF indicate the business is consuming cash rather than funding itself, creating ongoing liquidity strain. Sustained cash burn forces reliance on external funding or asset sales, undermining the company's ability to invest, maintain inventory, or meet debt service over months.

Weak Profitability & Thin Margins

A large net loss and ~2.9% gross margin point to structural margin compression and poor pricing power or cost control. Low margins reduce shock absorption from input-cost swings, hinder return-to-profitability efforts, and challenge the business model's ability to sustain operations without structural changes.

Spentex Industries Limited Business Overview & Revenue Model

Company Description

CLC Industries Limited, a textile company, engages in the manufacture and trading of synthetic and cotton yarns in India. 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

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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	TTM	Mar 2025	Sep 2023	Mar 2022	Mar 2019	Mar 2018
Income Statement
Total Revenue	3.71B	616.02M	0.00	0.00	2.45B	4.80B
Gross Profit	138.09M	17.68M	-100.17M	-614.00K	363.36M	698.56M
EBITDA	3.74M	-394.51M	-249.48M	-21.11M	-75.41M	-847.92M
Net Income	-52.90M	-462.48M	-342.81M	-114.58M	-551.89M	-1.15B
Balance Sheet
Total Assets	1.12B	1.03B	957.48M	2.12B	2.44B	2.66B
Cash, Cash Equivalents and Short-Term Investments	387.92M	54.26M	58.40M	19.67M	467.90M	130.20M
Total Debt	634.61M	546.05M	349.29M	5.36B	8.21B	5.43B
Total Liabilities	1.05B	930.13M	395.09M	7.49B	10.99B	10.53B
Stockholders Equity	61.94M	100.09M	562.38M	-5.37B	-8.55B	-7.87B
Cash Flow
Free Cash Flow	-70.25M	-283.76M	-78.85M	-44.27M	60.54M	65.53M
Operating Cash Flow	-65.43M	-217.49M	-55.14M	-44.27M	68.23M	67.45M
Investing Cash Flow	7.07M	50.00M	576.17M	89.00K	-3.51M	10.85M
Financing Cash Flow	62.42M	163.85M	-481.56M	0.00	-73.87M	-69.31M

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	₹993.86M	53.55	―	―	4.60%	226.64%
GANGOTRI	43 Neutral	₹20.22M	-25.42	―	―	―	―
CLCIND	40 Underperform	₹118.60M	-14.77	―	―	―	―