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): 30.4
• Beta (1Y): 1.12
• 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

Top-line growth

Reported revenue growth (14.4% in fundamentals) signals a durable recovery in demand and expanding sales base. Sustained top-line expansion supports scale benefits, long-term operational leverage and potential to absorb fixed costs if management maintains execution and distribution momentum.

Manageable leverage

A debt-to-equity near 1.0 reflects moderate leverage that can fund operations and growth without excessive refinancing risk. Manageable leverage preserves strategic flexibility for capex or working capital needs and limits solvency stress if cash generation improves over the medium term.

Reported net profitability

A positive net margin (~18%) indicates the business can generate bottom-line profits after expenses. If sustained, this provides a foundation for reinvestment, deleveraging or shareholder return. The benefit depends on maintaining revenue growth and resolving earnings quality issues.

Negative Factors

Weak cash generation

Negative operating and free cash flows point to structural cash conversion problems that constrain reinvestment, debt servicing and dividends. Over months, persistent cash deficits increase reliance on external financing, raising funding costs and limiting strategic options.

Profitability quality concerns

A negative EBIT margin alongside an abnormally high gross margin suggests earnings are affected by one-offs or accounting adjustments. This undermines confidence in sustainable operating profitability and makes forecasting core margin trends risky for medium-term planning.

Low returns & equity volatility

A low ROE (~6.4%) with volatile equity indicates limited effectiveness in deploying capital to generate shareholder returns. Persistently low ROE reduces reinvestment appeal, may pressure capital allocation decisions, and signals the need for structural improvements to restore investor returns.

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	₹293.47M	28.99	―	―	17.46%	92.00%
EUROTEXIND	43 Neutral	₹121.62M	-3.16	―	―	-53.77%	―
GANGOTRI	43 Neutral	₹20.22M	-25.42	―	―	―	―
SUPERSPIN	42 Neutral	₹321.20M	9.82	―	―	-9.14%	-16.81%
EASTSILK	39 Underperform	₹404.45M	30.37	―	―	-0.12%	-10.67%