Fiberweb (India) Limited (FIBERWEB) AI Stock Analysis

• Market Cap: ₹1.24B
• Dividend Yield: N/A
• Average Volume (3M): 8.37K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.16
• Revenue Growth: 19.37%
• EPS Growth: 40.55%
• Country: IN
• Employees: 111
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.36
• Shares Outstanding: 28,791,710
• 10 Day Avg. Volume: 18,007
• 30 Day Avg. Volume: 8,367
• PEG Ratio: 0.07
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 1.15
• P/FCF Ratio: -26.77
• 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: 74 Outperform
• Price Target: ₹48.00 ▲(29.66% Upside)

The score is primarily supported by strong financial fundamentals (profitability improvement and a very low-leverage balance sheet) and an attractive valuation (low P/E). Technicals remain constructive due to the prevailing uptrend, but overbought signals (high RSI and Stochastic) and negative free cash flow from elevated capex temper the overall rating.

Positive Factors

Revenue & margin recovery

A 17.8% revenue rebound combined with materially higher gross and net margins indicates sustained demand and improved cost control. These trends support durable earnings power and provide a foundation for continued cash generation and reinvestment over the next 2–6 months if markets remain stable.

Very low financial leverage

An extremely strong equity ratio and minimal debt provide financial flexibility, lower solvency risk, and capacity to fund organic growth or absorb cyclical shocks. This durable balance sheet strength supports strategic investment and keeps refinancing risk limited over the medium term.

Improving cash generation from operations

Marked improvement in operating cash flow and decent cash conversion (OCF/net income ~0.76) indicate the business is converting profits into cash more reliably. If maintained, this underpins capital allocation choices and reduces dependence on external funding over the coming months.

Negative Factors

Negative free cash flow from high capex

Sustained negative free cash flow driven by elevated capex can erode liquidity despite strong operating cash generation. If high investment continues, it may constrain discretionary spending, require external financing, or delay free-cash-flow recovery, raising medium‑term financial risk.

Modest return on equity

ROE around 8.5% signals only modest capital returns relative to shareholders. Even with low leverage, this suggests the company still has scope to improve asset efficiency and profitability; persistent middling ROE may limit long‑term shareholder value creation versus higher‑return peers.

Operational margins still have upside

While gross and net margins improved, EBIT/EBITDA still indicate remaining operational inefficiencies. If management does not close this gap, margin volatility or cost pressures could limit sustainable profit expansion and constrain free cash flow improvement across the medium term.

Fiberweb (India) Limited Business Overview & Revenue Model

Company Description

Fiberweb (India) Limited manufactures and sells spunbond and melt-blown polypropylene nonwoven fabrics in India. The company serves hygiene, agriculture crop cover, and medical and industrial clothing industries. It also exports its products to the United States, the United Kingdom, Europe, Australia, New Zealand, South Africa, and Gulf countries. The company was formerly known as PVD Plast Mould Industries Limited. Fiberweb (India) Limited was incorporated in 1985 and is based in Mumbai, India.

How the Company Makes Money

Fiberweb generates revenue primarily through the sale of its non-woven fabrics to a wide array of industries. The company's revenue model is based on both direct sales to customers and long-term contracts with major clients in sectors such as hygiene products, where its materials are essential for the production of items like diapers and feminine hygiene products. Key revenue streams include bulk orders from manufacturers, customized fabric solutions, and ongoing supply agreements. Additionally, strategic partnerships with industry leaders enhance its market reach and operational efficiency, contributing significantly to its earnings.

Fiberweb (India) Limited Financial Statement Overview

Summary

Strong revenue recovery (+17.76% from 2024 to 2025) and improved profitability (gross margin 38.23%, net margin 14.81%) support the score. The balance sheet is very strong with high equity ratio (91.76%) and low leverage (debt-to-equity 0.05). The main offset is cash flow quality: free cash flow is negative due to high capital expenditures, which raises sustainability and liquidity risk if it persists.

Income Statement

Fiberweb has shown a strong recovery in revenue with a notable growth rate of 17.76% from 2024 to 2025. The company's gross profit margin has improved to 38.23%, indicating efficient cost management. Net profit margin also increased significantly to 14.81%, showing enhanced profitability. However, the EBIT and EBITDA margins, although improved, still suggest room for operational efficiency gains.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio of 91.76%, indicating financial stability. The debt-to-equity ratio is low at 0.05, which suggests prudent financial leverage. Return on equity increased to 8.51%, showcasing improved profitability relative to shareholder equity. Overall, the company maintains a robust financial position with low leverage risk.

Cash Flow

Operating cash flow improved significantly, showing a positive cash generation trend. However, the company reported negative free cash flow due to high capital expenditures, which could be a concern if sustained. The operating cash flow to net income ratio is 0.76, indicating reasonable cash flow conversion, but the free cash flow to net income ratio is negative, suggesting potential liquidity challenges if capital spending remains high.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.06B	1.01B	859.97M	661.13M	952.11M	1.07B
Gross Profit	441.77M	387.23M	369.22M	230.34M	264.99M	326.60M
EBITDA	242.61M	224.62M	124.86M	25.02M	160.96M	230.22M
Net Income	171.65M	150.04M	72.70M	-2.99M	113.35M	143.72M
Balance Sheet
Total Assets	0.00	1.92B	1.71B	1.69B	1.78B	1.89B
Cash, Cash Equivalents and Short-Term Investments	16.40M	16.40M	36.93M	49.24M	62.94M	69.45M
Total Debt	0.00	84.33M	137.31M	63.40M	0.00	0.00
Total Liabilities	-1.76B	159.03M	98.96M	147.28M	64.00M	136.85M
Stockholders Equity	1.76B	1.76B	1.61B	1.54B	1.54B	1.75B
Cash Flow
Free Cash Flow	0.00	-43.52M	-16.22M	-94.74M	-13.07M	-6.53M
Operating Cash Flow	0.00	114.17M	6.28M	176.51M	87.11M	152.79M
Investing Cash Flow	0.00	-165.97M	-22.14M	-260.87M	-99.52M	-156.93M
Financing Cash Flow	0.00	31.27M	3.54M	68.85M	8.64M	-11.12M

Fiberweb (India) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FIBERWEB, the sentiment is Positive. The current price of 37.02 is above the 20-day moving average (MA) of 35.16, above the 50-day MA of 35.99, and below the 200-day MA of 43.25, indicating a neutral trend. The MACD of 1.49 indicates Negative momentum. The RSI at 70.03 is Negative, neither overbought nor oversold. The STOCH value of 85.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:FIBERWEB.

Fiberweb (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIBERWEB	74 Outperform	₹1.24B	7.24	―	―	19.37%	40.55%
TEXMOPIPES	63 Neutral	₹1.34B	7.20	―	―	-3.48%	363.10%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TIRUPATIFL	60 Neutral	₹4.24B	75.33	―	―	-0.94%	-48.46%
MMP	58 Neutral	₹6.58B	28.22	―	0.78%	26.79%	-35.43%
FLEXITUFF	40 Underperform	₹337.75M	-0.53	―	―	-67.01%	-140.84%

Fiberweb (India) Limited Corporate Events

Fiberweb (India) Wins ₹8-Crore US Export Orders After Tariff Cut, Signals Strong Outlook

Fiberweb (India) Ltd., a 100% export-oriented producer of spunbond and melt-blown nonwoven fabrics for hygiene, medical and industrial applications, has reported a sharp uptick in US-bound business following recent trade policy changes. The company has secured more than 15 new export orders from the United States, worth over ₹8 crore in total, within hours of US reciprocal tariffs on Indian goods being cut from 50% to 18%, and says the enlarged order book underpins expectations of strong operational performance in the near term. Management highlighted that the surge in demand underscores Fiberweb’s competitive positioning and operational agility in technical textiles, while clarifying that the new contracts are not related-party transactions and that no promoters have any interest in the ordering entities, a point aimed at reassuring investors on governance and transparency.

Fiberweb India Clears Q3 Results and Secures Major Funding for Rs 168-Crore Expansion

Fiberweb (India) Limited’s board has approved the unaudited standalone financial results for the third quarter and nine months ended 31 December 2025 and taken on record the statutory limited review by its auditors, while also reviewing share capital, committee reports and investor-related matters. In a key strategic move, the board noted a Rs 3.8 crore term loan from Bank of Baroda and formally approved a much larger financing package from State Bank of India comprising a Rs 115 crore term loan and Rs 20 crore working capital facility to fund a Rs 168 crore expansion project, with the balance to come from equity and internal accruals, signalling a significant growth push; additionally, the board agreed to extend the tenure of Chief Financial Officer Mukesh Pandya until 30 April 2026 following his earlier resignation, ensuring continuity in financial leadership during the expansion phase.