Kitex Garments Limited (KITEX) AI Stock Analysis

• Market Cap: ₹40.95B
• Dividend Yield: 0.25%
• Average Volume (3M): 159.10K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.65
• Revenue Growth: 49.50%
• EPS Growth: 74.50%
• Country: IN
• Employees: 4,951
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.04
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹209.00 ▲(2.96% Upside)

Kitex Garments' strong financial performance is offset by high leverage and negative cash flow. Technical indicators show neutral momentum, and valuation metrics suggest potential overvaluation.

Kitex Garments Limited Business Overview & Revenue Model

Company Description

Kitex Garments Limited (KITEX) is a prominent player in the textile and garment industry, primarily focused on the production of high-quality children's apparel. Established in India, the company specializes in the manufacturing of knitted garments, utilizing advanced technology to ensure efficiency and quality. KITEX serves both domestic and international markets, catering to a diverse clientele that includes major retailers and brands in the fashion sector. The company's commitment to sustainability and innovation positions it as a competitive force in the global garment industry.

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: 203.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 203 is above the 20-day moving average (MA) of 198.85, above the 50-day MA of 195.43, and below the 200-day MA of 220.89, indicating a neutral trend. The MACD of 2.98 indicates Negative momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 15.59 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	69 Neutral	₹86.03B	20.91	―	1.14%	8.84%	41.74%
GOKEX	69 Neutral	₹61.68B	34.92	―	―	39.03%	21.59%
RAJRATAN	66 Neutral	₹22.67B	38.69	―	0.42%	7.76%	-21.05%
SPAL	64 Neutral	₹17.84B	18.26	―	0.30%	43.15%	5.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KITEX	61 Neutral	₹40.95B	30.96	―	0.25%	49.50%	74.50%
ALOKINDS	40 Underperform	₹87.09B	-12.78	―	―	-20.02%	25.52%

Kitex Garments Limited Corporate Events

Kitex Garments Holds Virtual AGM, Discusses Financials

Kitex Garments Limited conducted its 33rd Annual General Meeting on September 17, 2025, via video conferencing, in compliance with SEBI regulations. The meeting facilitated remote e-voting and discussed the company’s audited financials and reports, ensuring transparency and engagement with stakeholders.

Kitex Garments Schedules 33rd AGM with Key Resolutions

Kitex Garments Limited has announced its 33rd Annual General Meeting (AGM) scheduled for September 17, 2025, to be conducted via video conferencing. Key agenda items include the adoption of audited financial statements, declaration of a final dividend, and the re-appointment of Mr. Sabu M Jacob as Chairman and Managing Director. These decisions are expected to influence the company’s strategic direction and shareholder value.