Donear Industries Limited (DONEAR) AI Stock Analysis

• Market Cap: ₹4.51B
• Dividend Yield: 0.21%
• Average Volume (3M): 5.61K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.62
• Revenue Growth: 9.35%
• EPS Growth: -20.51%
• Country: IN
• Employees: 2,510
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 52,000,000
• 10 Day Avg. Volume: 1,481
• 30 Day Avg. Volume: 5,608
• PEG Ratio: -2.18
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -9.82
• 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: 57 Neutral
• Price Target: ₹90.00 ▼(-1.63% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is primarily driven by decent financial performance (revenue growth and a stable balance sheet) but is capped by weak cash flow (lower operating cash flow and negative free cash flow). Technicals are mixed with a negative MACD despite improved short-term positioning, while valuation is supportive with a moderate P/E but minimal dividend yield.

Positive Factors

Steady revenue growth and healthy gross margins

Sustained top-line growth with healthy gross margins indicates the company can grow sales while retaining production efficiency. This creates durable operating leverage, supports reinvestment in brands and distribution, and helps absorb cyclical input-cost swings over a multi‑quarter horizon.

Reasonable balance sheet and rising shareholder equity

Balanced leverage and rising equity provide financial flexibility for capex, inventory cycles, or targeted M&A in textiles. A prudent capital structure reduces refinancing risk and supports consistent operations in a working-capital intensive apparel business over coming quarters.

Focused textile/apparel business model with brand-led distribution

A clear focus on suiting/shirting and established B2B and brand channels gives structural revenue clarity and repeatable demand. Brand-led distribution and mixed wholesale/D2C channels support diversified customer access and resilience to single-channel disruption over the medium term.

Negative Factors

Weak operating cash flow and negative free cash flow

Deteriorating cash conversion from operations and negative free cash flow constrain the firm's ability to fund working capital, capital expenditures, dividends, or deleveraging without external financing. Over several quarters this can restrict strategic flexibility and margin investment.

Eroding net profit margin despite stable gross margins

A narrowing net margin while gross margins remain healthy implies cost pressures beyond production (SG&A, finance costs, or other operating expenses). Persistent margin erosion reduces free cash generation and returns on capital, weakening long-term competitiveness.

EPS contraction indicates profitability stress

A meaningful decline in EPS signals operating or financial headwinds reducing shareholder earnings. Continued EPS contraction can limit reinvestment, slow deleveraging, and complicate talent or supplier retention efforts, impairing strategic initiatives over the next several quarters.

Donear Industries Limited Business Overview & Revenue Model

Company Description

Donear Industries Limited engages in the manufacture and sale of suitings, trousers, and shirting fabrics for men and women in India and internationally. It operates in two segments, Manufacturing and Dealing in Textiles; and Rental Property. The company's products include polyester viscose blended fabrics, polyester cotton blended fabrics, polyester fabrics, and cotton plain and yarn dyed shirting fabrics and bottomwear, as well as polyester wool, wool rich, and all wool fabrics. It offers fabrics under the Donear brand; and garments under the Dcot brand. The company markets and sells its products through a sales network consisting of 115 agents; 629 wholesalers; and 24,000 over the counter multi brand retail outlets in 29 states and 7 Union Territories of India. It also exports various blends of fabrics, including wool, polyester/viscose, polyester/wool, polyester/cotton, poly/visc/cotton, poly/visc/lycra, poly/wool/lycra, cotton, linen cotton, linen, and cotton modal to wholesalers, distributors, garment manufacturers, retailers, buying houses, and departmental stores in approximately 37 countries worldwide. Donear Industries Limited was founded in 1977 and is based in Mumbai, India.

How the Company Makes Money

Donear Industries Limited generates revenue primarily through the sale of textiles and apparel. The company has multiple revenue streams, including manufacturing and selling fabrics to retailers and wholesalers, as well as producing ready-made garments that are sold through various distribution channels. Additionally, DONEAR has established strategic partnerships with both domestic and international brands, enhancing its market reach and visibility. The company also benefits from export sales, tapping into global markets to diversify its income sources. Furthermore, its focus on innovation and quality helps to drive customer loyalty and repeat business, contributing significantly to its earnings.

Donear Industries Limited Financial Statement Overview

Summary

Income statement is solid (steady revenue growth and healthy gross margin), and the balance sheet is reasonably stable with balanced leverage. The main drag is cash flow: operating cash flow decreased and free cash flow turned negative, indicating weaker cash generation and conversion of profits into cash.

Income Statement

Donear Industries Limited shows steady revenue growth, with a notable increase from the previous year, indicating positive sales momentum. The gross profit margin stands at a healthy level, reflecting efficient production processes. However, the net profit margin has declined slightly, suggesting rising costs or other financial pressures. Operational efficiencies are evident in the stable EBIT and EBITDA margins.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, indicating a balanced approach to leverage. Stockholders' equity has grown, enhancing financial stability, but the equity ratio suggests moderate reliance on debt financing. Return on equity remains positive, demonstrating effective use of shareholder funds, though there is room for improvement.

Cash Flow

Cash flow analysis reveals challenges, with a decrease in operating cash flow compared to the previous year, raising concerns about cash generation from core operations. The free cash flow has turned negative, highlighting cash management issues. The ratio of operating cash flow to net income suggests potential issues in converting profits into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.11B	9.14B	7.99B	8.23B	5.68B	3.55B
Gross Profit	4.02B	3.21B	2.83B	2.76B	2.07B	1.17B
EBITDA	899.80M	899.73M	878.60M	814.09M	511.95M	111.88M
Net Income	319.06M	318.88M	347.10M	362.40M	227.72M	-62.70M
Balance Sheet
Total Assets	0.00	7.88B	7.10B	6.54B	6.11B	4.60B
Cash, Cash Equivalents and Short-Term Investments	99.83M	99.83M	153.83M	98.98M	121.96M	28.87M
Total Debt	0.00	3.90B	3.38B	3.53B	3.13B	2.37B
Total Liabilities	-2.35B	5.53B	5.06B	4.83B	4.76B	3.45B
Stockholders Equity	2.35B	2.35B	2.05B	1.71B	1.36B	1.15B
Cash Flow
Free Cash Flow	0.00	-563.52M	499.98M	-92.78M	-483.00M	401.41M
Operating Cash Flow	0.00	-297.06M	706.70M	39.56M	-244.22M	503.62M
Investing Cash Flow	0.00	-186.95M	-281.36M	-127.79M	-248.59M	-39.18M
Financing Cash Flow	0.00	499.19M	-465.48M	121.93M	491.10M	-460.78M

Donear Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.49
• 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:DONEAR, the sentiment is Negative. The current price of 91.49 is below the 20-day moving average (MA) of 93.19, above the 50-day MA of 90.89, and below the 200-day MA of 99.10, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 40.10 is Neutral, neither overbought nor oversold. The STOCH value of 21.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DONEAR.

Donear Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOKEX	65 Neutral	₹47.35B	92.98	―	―	22.27%	7.09%
V2RETAIL	62 Neutral	₹71.00B	20.98	―	―	65.91%	139.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VMART	60 Neutral	₹43.76B	16.14	―	―	16.45%	―
DONEAR	57 Neutral	₹4.51B	9.80	―	0.21%	9.35%	-20.51%
ARVINDFASN	56 Neutral	₹58.76B	65.33	―	0.31%	10.72%	-115.52%
RAJESHEXPO	51 Neutral	₹40.97B	18.97	―	―	112.02%	244.77%