Kitex Garments Limited (KITEX) AI Stock Analysis

• Market Cap: ₹33.97B
• Dividend Yield: 0.3%
• Average Volume (3M): 94.37K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.41
• Revenue Growth: 49.50%
• EPS Growth: 74.50%
• Country: IN
• Employees: 4,951
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.04
• Shares Outstanding: 199,500,000
• 10 Day Avg. Volume: 133,646
• 30 Day Avg. Volume: 94,372
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹213.00
• Price Target Upside: 25.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ₹213.00 ▲(25.07% Upside)

The overall stock score is primarily driven by robust financial performance, despite high leverage and negative free cash flow. Technical indicators suggest bearish momentum, and the stock’s valuation appears stretched with a high P/E ratio and low dividend yield. These factors contribute to a cautious outlook.

Kitex Garments Limited Business Overview & Revenue Model

Company Description

Kitex Garments Limited (KITEX) is a leading manufacturer and exporter of children's apparel, primarily catering to the global markets. Based in India, the company is renowned for its high-quality, comfortable, and sustainable children's garments. Kitex Garments operates in the textile and apparel sector, focusing on producing a range of products, including sleepwear, romper suits, and outerwear for infants and children up to the age of 24 months.

How the Company Makes Money

Kitex Garments Limited makes money through the production and sale of children's garments primarily to international clients. The company's revenue model is heavily reliant on export sales, with key revenue streams including the manufacturing of private label products for major global retailers and brands. Kitex has established significant partnerships with large international retailers and brands that contribute to its earnings. The company's focus on quality, sustainability, and compliance with international standards also plays a crucial role in maintaining and expanding its customer base, thereby driving revenue growth.

Kitex Garments Limited Financial Statement Overview

Summary

Kitex Garments shows strong revenue growth and profitability with healthy margins. However, increased debt and negative free cash flow pose risks. Effective management of leverage and cash flow is necessary for financial stability.

Income Statement

Kitex Garments has shown a strong revenue growth of 70.4% in the most recent year, which is a positive indicator of business expansion. Profitability margins, such as the gross profit margin (39.3%) and net profit margin (14.1%), are healthy and have improved over the previous years. The EBIT margin (18.8%) and EBITDA margin (22.3%) also reflect operational efficiency. However, the company has experienced fluctuations in revenue in previous years, which may suggest market volatility.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.05, indicating higher leverage which could pose financial risk. Despite this, the return on equity (ROE) stands at a solid 13.4%, showcasing effective utilization of shareholders' equity. The equity ratio of 39.9% suggests a balanced capital structure, although the recent increase in liabilities warrants careful monitoring.

Cash Flow

The cash flow statement indicates challenges with free cash flow, which stands at a negative value. However, the operating cash flow to net income ratio is positive, reflecting reasonable cash generation from operations. The significant capital expenditures might be contributing to negative free cash flow, potentially impacting liquidity if not managed effectively.

Breakdown	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2021
Income Statement
Total Revenue	9.83B	5.77B	7.46B	5.57B	4.28B
Gross Profit	3.86B	951.52M	3.70B	2.92B	2.29B
EBITDA	2.19B	1.13B	1.96B	1.04B	1.04B
Net Income	1.39B	563.31M	1.25B	575.54M	542.73M
Balance Sheet
Total Assets	25.87B	19.25B	9.94B	11.34B	7.87B
Cash, Cash Equivalents and Short-Term Investments	676.99M	692.34M	1.08B	1.07B	1.04B
Total Debt	10.82B	6.81B	730.65M	250.00M	0.00
Total Liabilities	13.77B	8.93B	1.82B	1.57B	916.68M
Stockholders Equity	10.33B	9.05B	8.12B	8.58B	6.96B
Cash Flow
Free Cash Flow	-4.62B	-6.55B	-241.14M	-1.21B	1.07B
Operating Cash Flow	429.43M	-382.55M	29.98M	2.95B	1.16B
Investing Cash Flow	-4.56B	-6.07B	-610.15M	-4.14B	-84.08M
Financing Cash Flow	4.03B	6.50B	599.07M	570.24M	-987.74M

Kitex Garments Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 170.30
• 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:KITEX, the sentiment is Negative. The current price of 170.3 is below the 20-day moving average (MA) of 225.47, below the 50-day MA of 255.81, and below the 200-day MA of 231.34, indicating a bearish trend. The MACD of -26.98 indicates Positive momentum. The RSI at 26.37 is Positive, neither overbought nor oversold. The STOCH value of 16.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KITEX.

Kitex Garments Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPAL	68 Neutral	₹20.57B	20.59		0.44%	28.31%	6.08%
ARVIND	64 Neutral	₹76.62B	20.84		1.28%	10.23%	18.42%
RAJRATAN	63 Neutral	₹16.66B	29.18		0.61%	6.05%	-23.51%
Sector *	61 Neutral	$17.22B	11.53	-5.99%	3.08%	1.40%	-15.51%
GOKEX	54 Neutral	₹51.45B	29.13		0.12%	39.03%	21.61%
KITEX	53 Neutral	₹33.97B	25.69		0.30%	49.50%	74.50%
ALOKINDS	41 Neutral	₹88.33B	―		―	-28.55%	5.61%

Kitex Garments Limited Corporate Events

Kitex Garments Schedules Investor Presentation for April 2025

Kitex Garments Limited has announced a presentation for analysts and institutional investors, scheduled for April 28 and 29, 2025. This presentation is part of the company’s efforts to engage with stakeholders and provide updates on its operations and strategic direction, potentially impacting its market positioning and investor relations.