Indian Card Clothing Co. Ltd. (INDIANCARD) AI Stock Analysis

• Market Cap: ₹1.12B
• Dividend Yield: N/A
• Average Volume (3M): 378.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -10.80%
• EPS Growth: -66.88%
• Country: IN
• Employees: 235
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): -1.02
• Shares Outstanding: 5,941,120
• 10 Day Avg. Volume: 480
• 30 Day Avg. Volume: 378
• PEG Ratio: <0.01
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 3.41
• P/FCF Ratio: -4.33
• 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: 47 Neutral
• Price Target: ₹186.00 ▼(-22.69% Downside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 11/08/25

The overall stock score of 47 reflects significant operational challenges and bearish technical indicators. The stock's low valuation offers some upside potential, but liquidity risks and negative cash flows are major concerns. Investors should be cautious and monitor for improvements in operational efficiency and cash flow management.

Positive Factors

Strong gross and improving net margins

Sustained strong gross margins indicate structural pricing power or favorable product mix in a specialized consumables niche. Improving net margins suggest management has begun translating top-line economics into bottom-line gains, supporting longer-term profitability if operational inefficiencies are addressed.

Robust equity position and low leverage

A high equity ratio and low debt levels provide durable financial flexibility, lowering default risk and enabling the company to fund working capital or small capex without high refinancing pressure. This conservative capital structure supports resilience through textile-cycle volatility.

Consumable, recurring revenue model

Selling replacement card clothing and consumables creates recurring demand tied to maintenance cycles at textile mills. This structural revenue predictability supports steady order visibility, customer stickiness, and the potential to monetize aftermarket relationships over multiple cycles.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow indicates the business is consuming cash despite margin strength, constraining reinvestment, debt servicing, and working capital. Without sustained cash generation, the firm may face liquidity pressure and limited ability to fund growth or absorb shocks.

EBIT remains negative

Negative EBIT shows that core operations are not yet delivering positive operating profit, implying cost structure, scale, or efficiency issues. Until EBIT turns sustainably positive, the company risks volatile earnings and limited capacity to convert gross margin into durable operating cash flow.

Recent revenue decline

A near-term revenue decline signals pressure on demand, pricing, or market share in its textile customer base. Continued top-line contraction undermines scale benefits, risks margin compression, and makes it harder to cover fixed costs, slowing the path to consistent profitability and cash generation.

Indian Card Clothing Co. Ltd. Business Overview & Revenue Model

Company Description

The Indian Card Clothing Company Limited manufactures and sells card clothing in India. The company operates in Card Clothing and Real Estate segments. Its products include cotton and synthetic products comprising cylinder wires, doffer wires, lickerin wires, and flat tops; metallic wires for non-woven cards; woolen, sundry, and fancy fillets; and rasing fillets and brush sheets for various fibres, yarn rasing fillets, humbugs, and hand cleaning cards. The company also provides Accura carding systems for ERM and RSK; Accura carding elements; and XTRAC systems; and card room machinery, including TOPS height measurement and re-shaping, wire re-shaping, roller mounting, and clipit machines. It also exports its products. The company was incorporated in 1955 and is based in Pune, India. The Indian Card Clothing Company Limited is a subsidiary of Multi Act Industrial Enterprises Limited.

How the Company Makes Money

INDIANCARD makes money primarily by manufacturing and selling card clothing products and related textile machine consumables to textile mills and other industrial customers. Revenue is generated through (1) product sales of card clothing (core line), where the company supplies replacement/consumable parts that are periodically renewed as part of routine mill maintenance; and (2) sales of any other related textile carding/spinning accessories and consumables that the company produces or distributes. The company’s earnings are therefore driven by order volumes from the textile industry, customer replacement cycles (recurring demand for consumables), pricing and product mix (e.g., different specifications/grades for different fibers and machine types), and its ability to maintain customer relationships with mills for repeat procurement. Specific breakdowns by product line, customer segment, geography, or named partnerships are not available in this context and are therefore null.

Indian Card Clothing Co. Ltd. Financial Statement Overview

Summary

Indian Card Clothing Co. Ltd. shows strong gross margins and improving net margins. However, persistent operational losses and negative cash flow highlight significant operational challenges. The balance sheet is robust with low leverage, but liquidity risks due to cash flow issues need addressing.

Income Statement

The company has experienced significant fluctuations in revenue over the past few years. The net profit margin has improved notably, turning positive in 2025, driven by a substantial increase in net income, but EBIT remains negative, indicating operational inefficiencies. Gross profit margins are strong, but the company struggles with consistent profitability at the EBIT and EBITDA levels.

Balance Sheet

The balance sheet shows a strong equity position with a high equity ratio, reflecting financial stability. However, the company has a low debt-to-equity ratio, suggesting conservative leverage usage. Return on equity has improved significantly, indicating better returns for shareholders, but the company's assets have increased sharply, which could imply inefficiencies.

Cash Flow

The cash flow situation is concerning, with negative free cash flow and operating cash flow in the latest period, suggesting liquidity issues. Free cash flow has been consistently negative, indicating ongoing cash utilization issues. The operating cash flow to net income ratio shows divergence, indicating potential non-cash income components or other operational cash flow issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	411.66M	420.31M	554.57M	661.14M	619.35M	539.78M
Gross Profit	309.60M	301.07M	390.64M	448.53M	355.63M	86.87M
EBITDA	358.06M	1.08B	131.54M	28.16M	2.28B	40.19M
Net Income	249.30M	918.69M	79.66M	36.62M	1.91B	-23.04M
Balance Sheet
Total Assets	3.76B	3.77B	2.92B	2.81B	3.01B	1.14B
Cash, Cash Equivalents and Short-Term Investments	942.20M	798.23M	513.91M	1.12B	1.88B	279.33M
Total Debt	49.86M	168.75M	249.76M	208.67M	191.89M	218.12M
Total Liabilities	288.15M	383.17M	458.31M	428.61M	340.17M	377.31M
Stockholders Equity	3.47B	3.38B	2.46B	2.38B	2.62B	715.02M
Cash Flow
Free Cash Flow	-104.69M	-331.21M	-41.73M	-28.49M	-67.01M	-137.71M
Operating Cash Flow	-80.16M	-173.22M	15.49M	29.56M	-889.00K	-20.41M
Investing Cash Flow	-92.05M	574.76M	-207.78M	-1.21B	1.67B	-19.46M
Financing Cash Flow	-123.49M	-118.50M	-21.12M	-308.38M	-45.93M	170.92M

Indian Card Clothing Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 240.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDIANCARD, the sentiment is Negative. The current price of 240.6 is above the 20-day moving average (MA) of 205.12, above the 50-day MA of 221.53, and below the 200-day MA of 263.74, indicating a bearish trend. The MACD of -10.24 indicates Positive momentum. The RSI at 25.57 is Positive, neither overbought nor oversold. The STOCH value of 13.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDIANCARD.

Indian Card Clothing Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPPL	63 Neutral	₹1.16B	16.55	―	―	10.14%	73.18%
TAINWALCHM	63 Neutral	₹1.74B	13.34	―	1.64%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
INCREDIBLE	59 Neutral	₹1.52B	26.50	―	―	10.59%	82.10%
UMAEXPORTS	55 Neutral	₹762.41M	25.72	―	―	-2.03%	-124.89%
INDIANCARD	47 Neutral	₹1.12B	-59.27	―	―	-10.80%	-66.88%

Indian Card Clothing Co. Ltd. Corporate Events

Indian Card Clothing Files SEBI Dematerialization Compliance Certificate

Indian Card Clothing Company Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, issued by its registrar and transfer agent KFin Technologies Limited. The registrar confirmed that all details of securities dematerialized during the quarter were furnished to the exchanges, and that physical share certificates received for dematerialization were duly verified, mutilated, cancelled, and replaced with depository entries within the prescribed 15-day timeline, underscoring the company’s adherence to regulatory requirements and the integrity of its share dematerialization process for investors and market intermediaries.