Gloster Ltd. (GLOSTERLTD) AI Stock Analysis

• Market Cap: ₹5.66B
• Dividend Yield: 6.2%
• Average Volume (3M): 176.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 86.75%
• EPS Growth: N/A
• Country: IN
• Employees: 3,716
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Manufacturing - Textiles
• EPS (TTM): -0.68
• Shares Outstanding: 10,943,260
• 10 Day Avg. Volume: 348
• 30 Day Avg. Volume: 176
• PEG Ratio: 0.31
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -1.96
• 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: 48 Neutral
• Price Target: ₹512.00 ▼(-21.53% Downside)
• Action: Reiterated Date: 10/09/25
• Date: Action: Reiterated 10/09/25

Gloster Ltd. faces significant challenges with negative profitability and cash flow issues, which are the most impactful factors. Technical indicators suggest a bearish trend, and valuation metrics are mixed with a negative P/E but high dividend yield. These factors combined result in a cautious outlook for the stock.

Positive Factors

Manageable leverage / stable capital structure

A debt-to-equity of 0.53 and a ~53.7% equity ratio indicate moderate leverage and a stable capital base. This structural solidity supports financing of working capital and incremental capex, giving the firm flexibility to navigate cyclical raw-material swings and invest in gradual operational upgrades.

Consistent revenue growth

Sustained revenue growth of ~13.7% demonstrates underlying demand expansion for the company's products. Over a multi-month horizon this trend supports scale economies, provides room to pursue higher-value product mix, and creates a pathway to recover margins if cost controls and pricing improve.

Durable B2B manufacturing business model

A B2B manufacturing model supplying packaging-grade jute tends to generate repeat orders and predictable volumes from industrial customers. This structural customer base supports operational planning, enables process optimization, and allows management to target value-added product lines to drive longer-term margin improvement.

Negative Factors

Negative profitability and compressing margins

Negative EBIT and net margins indicate the business is not covering operating costs at current scale or pricing. Persistently weak profitability undermines retained earnings, limits reinvestment capacity, and increases reliance on operational fixes or pricing power to restore sustainable returns over the medium term.

Weak operating and free cash flow

Negative operating and free cash flow signal the company is not generating cash from core activities, constraining ability to fund working capital, capex, or absorb raw-material cost spikes. Over several months this raises refinancing risk and could force higher-cost external funding or scaled-back investments.

Declining return on equity

A fall from a positive ROE to a negative reading reflects eroding efficiency in converting equity into profits. This structural deterioration reduces shareholder value creation, hampers the company’s ability to attract capital, and signals potential issues with pricing, costs, or capital allocation.

Gloster Ltd. Business Overview & Revenue Model

Company Description

Gloster Ltd. engages in the manufacture and sale of jute and jute allied goods. It operates through the Jute Goods and Cables segments. The Jute Goods segment consists of manufacturing and export of all types of jute and jute allied products. The Cables segment is involved in the manufacturing of cable wires. The company was founded in 1872 and is headquartered in Kolkata, India.

How the Company Makes Money

Gloster Ltd. makes money primarily by manufacturing and selling jute and jute-based products to customers (typically businesses) that use these goods for packaging and allied purposes. Revenue is generated from the sale of finished goods produced from jute raw materials, with earnings influenced by factors such as order volumes, product mix (higher value-added jute products vs. more commoditized items), input costs (especially raw jute), and pricing in domestic and export markets. Specific breakdowns of revenue streams by product line, customer segment, geography, or details of material partnerships are null.

Gloster Ltd. Financial Statement Overview

Summary

Gloster Ltd. faces challenges in profitability and cash flow generation despite stable revenue growth and a reasonable balance sheet. The negative margins and cash flow issues could pose risks to future financial stability unless addressed through operational improvements or strategic changes.

Income Statement

The company shows a concerning decline in profitability with a negative net profit margin of -1.82% and negative EBIT margin of -0.44% for the latest year. Revenue growth was strong at 13.67%, but the decline in margins indicates issues with cost management or market conditions affecting profitability.

Balance Sheet

The balance sheet is moderately strong with a debt-to-equity ratio of 0.53 indicating manageable leverage. However, the declining ROE from 6.10% to a negative value suggests pressure on shareholder returns. Equity ratio remains stable at 53.69%, highlighting a stable capital structure.

Cash Flow

Cash flow analysis reveals significant pressures with negative free cash flow and operating cash flow indicating potential liquidity issues. The free cash flow to net income ratio is unfavorable, which raises concerns about the company's ability to generate cash from operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.22B	7.61B	6.46B	6.98B	7.34B	4.87B
Gross Profit	4.61B	3.66B	3.15B	2.59B	2.86B	2.10B
EBITDA	1.24B	726.47M	785.47M	1.09B	1.44B	955.92M
Net Income	91.85M	-133.47M	243.52M	543.88M	652.84M	412.62M
Balance Sheet
Total Assets	22.05B	20.18B	14.70B	13.03B	12.40B	11.49B
Cash, Cash Equivalents and Short-Term Investments	748.19M	319.84M	582.66M	491.25M	778.69M	395.81M
Total Debt	7.53B	5.79B	1.94B	732.19M	103.63M	243.07M
Total Liabilities	11.24B	9.35B	3.60B	2.24B	1.69B	1.55B
Stockholders Equity	10.81B	10.83B	11.10B	10.79B	10.71B	9.94B
Cash Flow
Free Cash Flow	-1.68B	-3.28B	-1.07B	-854.08M	398.82M	-502.65M
Operating Cash Flow	-841.83M	-990.39M	380.05M	668.10M	1.26B	431.48M
Investing Cash Flow	-541.02M	-2.27B	-1.26B	-771.72M	-958.20M	-511.67M
Financing Cash Flow	1.20B	3.41B	854.96M	148.86M	-289.54M	-144.79M

Gloster Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 652.50
• 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:GLOSTERLTD, the sentiment is Negative. The current price of 652.5 is above the 20-day moving average (MA) of 550.73, above the 50-day MA of 586.55, and above the 200-day MA of 641.59, indicating a bearish trend. The MACD of -18.56 indicates Positive momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 28.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GLOSTERLTD.

Gloster Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMBIKCO	63 Neutral	₹7.26B	11.65	―	2.91%	-15.70%	-4.19%
RUBYMILLS	63 Neutral	₹6.69B	19.45	―	0.78%	31.27%	38.24%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SATIA	60 Neutral	₹5.97B	5.94	―	0.44%	-9.42%	-56.27%
RUSHIL	52 Neutral	₹4.60B	29.37	―	0.42%	-4.97%	-65.55%
GLOSTERLTD	48 Neutral	₹5.66B	-241.19	―	6.20%	86.75%	―

Gloster Ltd. Corporate Events

Gloster Confirms SEBI Demat Compliance for December Quarter

Gloster Limited has notified the stock exchanges that it has received a compliance certificate from its registrar and share transfer agent, Maheshwari Datamatics Pvt. Ltd., under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The registrar confirmed that no dematerialisation requests for the company’s equity shares were processed or confirmed during the quarter, indicating a stable shareholding pattern in demat form and underscoring the company’s adherence to regulatory reporting requirements for listed entities.

Gloster Seeks Shareholder Nod to Expand Borrowing and Asset-Backed Financing Powers via E-Vote

Gloster Limited has initiated a postal ballot process conducted exclusively through remote e-voting to seek shareholder approval for two key special business resolutions: expanding the company’s borrowing powers under Section 180(1)(c) of the Companies Act, 2013, and increasing limits under Section 180(1)(a) for creating mortgages, charges or undertaking the sale of company assets. The e-voting window, facilitated by CDSL and supported by its registrar Maheswari Datamatics, runs from 6 January to 4 February 2026, with results to be submitted to the stock exchanges within two working days after closure; if approved, the enhanced borrowing and security-creation authority would give Gloster greater financial flexibility for future funding and asset-backed financing, with implications for its capital structure and ability to pursue growth or restructuring initiatives.

Gloster to Take 49% Stake in New SPV for Cost-Efficient Jute Gunny Bag Manufacturing

Gloster Limited’s board has approved a proposal to invest in and subscribe to 49% of the equity capital of a soon-to-be-formed special purpose vehicle (SPV) focused on cost-efficient manufacturing and supply of high-quality jute gunny bags. The SPV, which will operate within the jute industry and become an associate company of Gloster upon investment, will be funded through cash consideration of about Rs 5 crore in one or more tranches, with the first tranche targeted by March 31, 2026; the move is expected to strengthen Gloster’s manufacturing capabilities and cost structure in its core jute packaging segment without requiring regulatory approvals, potentially enhancing its competitiveness and positioning in the jute packaging market.