Eastern Silk Industries Limited (EASTSILK) AI Stock Analysis

• Market Cap: ₹404.45M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 909.9
• Beta (1Y): 2.99
• Revenue Growth: -0.12%
• EPS Growth: -10.67%
• Country: IN
• Employees: 289
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.68
• Shares Outstanding: 5,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.01
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -0.63
• 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: 39 Underperform
• Price Target: ₹76.00 ▲(173.87% Upside)
• Action: Downgraded Date: 03/03/26
• Date: Action: Downgraded 03/03/26

The score is held down primarily by weak financial performance—especially negative operating/free cash flow and profitability concerns—combined with very poor valuation (P/E ~909). Technicals provide only limited support due to extreme overbought conditions despite the price being far above key moving averages.

Positive Factors

Revenue growth

Sustained revenue growth (7.51% reported) indicates improving demand or recovery in core apparel markets. Over a multi-month horizon this supports capacity utilization, spreads fixed costs, and provides a foundation to restore margins if cost control and mix improvements continue.

Manageable leverage

A debt-to-equity around 0.98 signals moderate leverage, limiting solvency risk and preserving access to credit. This balance gives management room to refinance or fund strategic investments without immediate distress, supporting business durability over the next several months.

Positive FCF-to-net-income ratio

Despite recent cash flow weakness, a positive free cash flow to net income ratio shows some ability to convert reported earnings into cash. This structural conversion capability can underpin gradual cash generation improvements as operations stabilize and supports reinvestment or debt reduction.

Negative Factors

Negative operating and free cash flow

Sustained negative operating and free cash flows erode liquidity, constrain capital expenditures, and force dependence on external financing. Over 2-6 months this limits the firm's ability to invest in product, working capital, or margin recovery initiatives, raising structural risk.

Weak operating profitability

A negative EBIT margin points to structural weakness in core operations or cost base. Without durable operating profitability, the company cannot sustainably cover interest, fund growth, or build reserves, making margin recovery essential for long-term viability.

Low return on equity

ROE near 6.4% signals limited ability to generate shareholder returns from capital employed. Persistently low ROE suggests inefficiencies, weak pricing power, or capital allocation issues that will constrain investor returns and strategic flexibility over the medium term.

Eastern Silk Industries Limited Business Overview & Revenue Model

Company Description

Eastern Silk Industries Limited manufactures and sells textile and allied products in India. The company provides silk yarns, fabrics and made-ups, home furnishings, scarves, laces, and belts, as well as fashion, handloom, double width, and embroidered fabrics. It also exports its products to the United States, Europe, Australia, the Middle East, Canada, Japan, New Zealand, Scandinavian, and EFFTA countries. The company was incorporated in 1946 and is based in Kolkata, India.

How the Company Makes Money

EASTSILK generates revenue through multiple streams, primarily by manufacturing and selling silk fabrics and finished textile products. The company earns money by supplying its products to both domestic retailers and international fashion brands, leveraging its production capabilities to meet diverse client needs. Key revenue streams include bulk fabric sales, customized textile solutions, and partnerships with garment manufacturers. Additionally, EASTSILK may benefit from strategic collaborations with fashion designers and brands, expanding its market reach and enhancing brand visibility. The company also focuses on maintaining high-quality standards and implementing efficient production processes, which contribute to cost savings and improved profit margins.

Eastern Silk Industries Limited Financial Statement Overview

Summary

Weak financial profile: modest revenue growth (7.51%) but profitability quality is concerning (negative EBIT margin and an unusually high gross margin suggesting adjustments). Cash flow is the biggest drag with negative operating and free cash flow and poor earnings-to-cash conversion.

Income Statement

Eastern Silk Industries Limited shows a mixed performance in its income statement. The company has experienced a positive revenue growth rate of 7.51% in the latest year, indicating a recovery from previous declines. However, profitability remains a concern with a negative EBIT margin and a modest net profit margin of 18.37%. The gross profit margin is unusually high at 106.95%, likely due to accounting adjustments or extraordinary items. Overall, while there is some revenue growth, the company struggles with profitability.

Balance Sheet

The balance sheet reveals a stable debt-to-equity ratio of 0.98, indicating manageable leverage. However, the return on equity is low at 6.37%, suggesting limited returns for shareholders. The equity ratio is not explicitly calculated, but the company has a relatively balanced asset base. Despite a reduction in total debt, the company's equity position has been volatile, impacting overall financial stability.

Cash Flow

Cash flow analysis shows significant challenges, with negative operating and free cash flows in the most recent year. The free cash flow growth rate is negative, indicating deteriorating cash generation capabilities. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting earnings to cash. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net income, but overall cash flow management remains a concern.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	215.79M	189.20M	380.13M	713.00M	870.16M
Gross Profit	230.78M	37.78M	122.52M	-16.70M	159.21M
EBITDA	25.92M	-88.55M	-103.54M	-21.32M	62.16M
Net Income	39.64M	-123.04M	-144.34M	-68.65M	10.45M
Balance Sheet
Total Assets	1.51B	1.35B	1.52B	1.65B	1.73B
Cash, Cash Equivalents and Short-Term Investments	135.22M	152.59M	130.21M	76.89M	76.33M
Total Debt	612.89M	581.52M	1.46B	1.50B	1.49B
Total Liabilities	882.49M	723.94M	1.95B	1.93B	1.96B
Stockholders Equity	622.71M	626.48M	-432.14M	-288.69M	-222.72M
Cash Flow
Free Cash Flow	-14.19M	80.31M	31.68M	-4.79M	11.67M
Operating Cash Flow	-9.92M	86.26M	34.44M	11.89M	19.98M
Investing Cash Flow	-992.00K	-4.07M	-532.00K	-13.04M	-6.92M
Financing Cash Flow	29.59M	-70.53M	-39.00M	1.70M	-9.50M

Eastern Silk Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
SGL	49 Neutral	₹325.31M	368.01	―	―	17.46%	92.00%
EUROTEXIND	43 Neutral	₹111.74M	6.21	―	―	-53.77%	―
GANGOTRI	43 Neutral	₹20.22M	-29.95	―	―	―	―
SUPERSPIN	42 Neutral	₹338.25M	-2.30	―	―	-9.14%	-16.81%
EASTSILK	39 Underperform	₹404.45M	909.90	―	―	-0.12%	-10.67%