Kitex Garments Limited (KITEX) AI Stock Analysis

• Market Cap: ₹30.88B
• Dividend Yield: 0.27%
• Average Volume (3M): 159.10K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 1.88
• Revenue Growth: 20.41%
• EPS Growth: -6.50%
• Country: IN
• Employees: 4,951
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.08
• Shares Outstanding: 199,500,000
• 10 Day Avg. Volume: 88,365
• 30 Day Avg. Volume: 159,100
• PEG Ratio: 0.17
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 3.51
• P/FCF Ratio: -7.46
• 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: 53 Neutral
• Price Target: ₹157.00 ▼(-14.04% Downside)

The score is driven primarily by solid financial performance (strong growth and margins) but is pulled down by negative free cash flow and higher leverage. Technically, the stock is in a pronounced downtrend with bearish momentum, and valuation looks demanding (high P/E with low yield), limiting upside support.

Positive Factors

Strong recent revenue growth

Sustained high revenue expansion indicates successful demand capture and scaling of production capabilities. Over 2–6 months this underpins durable sales momentum, supports fixed-cost absorption, and provides a platform to invest in capacity, product development, and long-term customer relationships.

Healthy and improving margins

Strong gross and operating margins reflect manufacturing efficiency and pricing power in the core children's apparel niche. Durable margin structure supports reinvestment, resilience to input cost volatility, and the ability to sustain profitability while funding growth initiatives and long-term partnerships.

Large manufacturing scale & stable retail contracts

Scale advantages and long-term retail contracts create predictable demand and cost advantages. This structural strength supports stable order flow, higher utilization, and bargaining power with suppliers and customers, reducing execution risk and enabling multi-year revenue visibility.

Negative Factors

Elevated leverage (debt-to-equity)

Higher leverage increases financial fixed costs and reduces flexibility to fund capex or weather demand slowdowns. Over months this can constrain strategic choices, raise refinancing risk if rates shift, and magnify earnings volatility, especially in a cyclical apparel industry.

Negative free cash flow and heavy capex

Persistent negative free cash flow driven by sizable capex can erode liquidity and force external financing. Structurally, this pressures balance sheet health, may increase debt dependence, and limits the company's ability to self-fund growth, dividends, or cushion against demand shocks.

Revenue/earnings volatility history

Historical revenue swings and negative recent EPS growth indicate exposure to demand cyclicality or customer concentration. Over the medium term this raises predictability risk for cash flows and planning, complicating capex timing and making earnings less reliable for long-term investors.

Kitex Garments Limited Business Overview & Revenue Model

Company Description

Kitex Garments Limited, together with its subsidiaries, manufactures and sells fabric and readymade garments in India. It primarily offers infant wear comprising body suits; rompters and skirts; burps; sleepsuits; tops and dresses; bibs; sleepwear and SNP; baby quilts and bedding; and training pants and jackets. The company also exports its products to the United States and Europe. Kitex Garments Limited was incorporated in 1992 and is based in Kochi, India.

How the Company Makes Money

Kitex Garments Limited generates revenue primarily through the production and sale of knitted garments, specifically children's clothing. The company's revenue model is based on both wholesale and direct-to-consumer sales, with key revenue streams coming from long-term contracts with large retail chains and brands that require consistent supply of high-quality apparel. Additionally, KITEX benefits from economies of scale due to its large manufacturing capacity, which allows for cost-effective production. The company has established significant partnerships with various international retailers, enhancing its market reach and driving sales. Factors contributing to its earnings include its reputation for quality, efficient supply chain management, and a focus on sustainable practices that appeal to environmentally conscious consumers.

Kitex Garments Limited Financial Statement Overview

Summary

Kitex Garments shows strong revenue growth and profitability, with healthy profit margins. However, increased leverage and negative free cash flow pose financial risks.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.89B	9.83B	5.77B	5.36B	7.46B	4.28B
Gross Profit	4.67B	3.86B	951.52M	2.92B	3.70B	2.29B
EBITDA	2.11B	2.19B	1.13B	1.04B	1.96B	1.04B
Net Income	1.32B	1.39B	563.31M	575.54M	1.25B	542.73M
Balance Sheet
Total Assets	0.00	25.87B	19.25B	11.34B	9.94B	7.87B
Cash, Cash Equivalents and Short-Term Investments	676.99M	393.97M	498.13M	455.23M	1.08B	1.04B
Total Debt	0.00	10.82B	6.81B	250.00M	730.65M	0.00
Total Liabilities	-12.10B	13.77B	8.93B	1.57B	1.82B	916.68M
Stockholders Equity	12.10B	10.33B	9.05B	8.58B	8.12B	6.96B
Cash Flow
Free Cash Flow	0.00	-4.62B	-6.55B	-1.21B	-241.14M	1.07B
Operating Cash Flow	0.00	429.43M	-382.55M	2.95B	29.98M	1.16B
Investing Cash Flow	0.00	-4.56B	-6.07B	-4.14B	-610.15M	-84.08M
Financing Cash Flow	0.00	4.03B	6.50B	570.24M	599.07M	-987.74M

Kitex Garments Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 182.65
• 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 182.65 is above the 20-day moving average (MA) of 181.58, below the 50-day MA of 196.96, and below the 200-day MA of 221.70, indicating a bearish trend. The MACD of -8.95 indicates Positive momentum. The RSI at 18.54 is Positive, neither overbought nor oversold. The STOCH value of 9.27 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
ARVIND	73 Outperform	₹77.59B	18.86	―	1.18%	8.84%	41.74%
SPAL	67 Neutral	₹17.10B	15.47	―	0.28%	34.25%	28.44%
RAJRATAN	66 Neutral	₹23.44B	40.00	―	0.42%	7.76%	-21.05%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GOKEX	57 Neutral	₹47.84B	30.71	―	―	22.27%	7.09%
KITEX	53 Neutral	₹30.88B	33.08	―	0.27%	20.41%	-6.50%
ALOKINDS	40 Underperform	₹78.70B	-11.55	―	―	-20.02%	25.52%

Kitex Garments Limited Corporate Events

Kitex Garments Confirms Timely Processing of Share Dematerialisation Requests

Kitex Garments 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 December 31, 2025. The company’s Registrar and Transfer Agent, Cameo Corporate Services Limited, confirmed that all dematerialization requests received during the quarter were processed within the prescribed timelines, with corresponding securities duly mutilated, cancelled, and credited in demat form, indicating adherence to regulatory norms and supporting confidence in the company’s share transfer and demat processes for investors and regulators.