Donear Industries Limited (DONEAR) AI Stock Analysis

• Market Cap: ₹4.37B
• Dividend Yield: 0.21%
• Average Volume (3M): 5.61K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.57
• 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: ₹88.00 ▼(-3.81% 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

Sustained revenue growth (Fundamentals: ~9.35% YoY) indicates durable demand for fabrics and apparel and supports higher capacity utilization. Over 2-6 months this underpins predictable top-line expansion, enabling reinvestment in distribution and product lines to secure market share.

Healthy gross margins

Consistently healthy gross margins reflect efficient production and sourcing advantages in textiles. Margin resilience helps absorb input cost swings and funds operating needs without immediate price hikes, supporting sustainable profitability and competitive pricing over the medium term.

Reasonable balance sheet leverage

A balanced debt-to-equity profile with rising shareholder equity provides financial flexibility for capex or working capital. This structural stability reduces refinancing stress and supports growth or cyclical cushions, making the company more resilient across the next several quarters.

Negative Factors

Weak cash generation

Declining operating cash flow and negative free cash flow indicate the firm struggles to convert accounting profits into cash. Persisting cash conversion issues limit internal funding for capex, debt reduction or dividends and increase reliance on external financing over the medium term.

Earnings contraction

A meaningful EPS decline and falling net margin point to margin pressure or non-operating headwinds. Over 2-6 months, weaker profitability constrains retained earnings for reinvestment, raises sensitivity to cost shocks, and can impair the company’s ability to fund strategic initiatives internally.

Moderate reliance on debt

Moderate debt reliance increases fixed interest obligations and financial leverage risk, especially given weak cash conversion. If operating cash flow remains pressured, servicing debt could crowd out investment and force costly refinancing, elevating structural financial vulnerability.

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 primarily makes money by selling textile and apparel products through the domestic trade channel and brand-led distribution. Its core revenue is generated from (1) sale of suiting and shirting fabrics and (2) sale of ready-to-wear or related branded apparel products where applicable. Revenue is typically realized via wholesale/distributor and retailer sales (B2B) and may also include direct brand/channel sales (D2C) where the company operates such routes. Additional earnings can come from job-work/manufacturing services, exports, and other operating income only if disclosed by the company; specific breakdowns of revenue by segment/channel, named significant customers, or partnerships are null.

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	9.38B	9.14B	7.99B	8.23B	5.68B	3.55B
Gross Profit	4.19B	3.21B	2.83B	2.76B	2.07B	1.17B
EBITDA	987.56M	899.73M	878.60M	814.09M	511.95M	111.88M
Net Income	337.24M	318.88M	347.10M	362.40M	227.72M	-62.70M
Balance Sheet
Total Assets	8.00B	7.88B	7.10B	6.54B	6.11B	4.60B
Cash, Cash Equivalents and Short-Term Investments	123.17M	99.83M	153.83M	98.98M	121.96M	28.87M
Total Debt	3.97B	3.90B	3.38B	3.53B	3.13B	2.37B
Total Liabilities	5.44B	5.53B	5.06B	4.83B	4.76B	3.45B
Stockholders Equity	2.55B	2.35B	2.05B	1.71B	1.36B	1.15B
Cash Flow
Free Cash Flow	96.78M	-563.52M	499.98M	-92.78M	-483.00M	401.41M
Operating Cash Flow	110.14M	-297.06M	706.70M	39.56M	-244.22M	503.62M
Investing Cash Flow	-8.20M	-186.95M	-281.36M	-127.79M	-248.59M	-39.18M
Financing Cash Flow	-93.63M	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 above the 20-day moving average (MA) of 88.07, above the 50-day MA of 89.07, and below the 200-day MA of 97.35, indicating a bearish trend. The MACD of -1.63 indicates Positive momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 26.08 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
V2RETAIL	62 Neutral	₹69.73B	20.98	―	―	65.91%	139.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VMART	60 Neutral	₹40.69B	16.14	―	―	16.45%	―
DONEAR	57 Neutral	₹4.37B	9.80	―	0.21%	9.35%	-20.51%
ARVINDFASN	56 Neutral	₹52.97B	65.33	―	0.31%	10.72%	-115.52%
GOKEX	56 Neutral	₹42.59B	92.98	―	―	22.27%	7.09%
RAJESHEXPO	52 Neutral	₹27.89B	18.97	―	―	112.02%	244.77%