Kitex Garments Limited (KITEX) AI Stock Analysis

• Market Cap: ₹34.12B
• Dividend Yield: 0.27%
• Average Volume (3M): 159.10K
• Price to Earnings (P/E): 36.5
• Beta (1Y): 1.78
• 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: 59 Neutral
• Price Target: ₹186.00 ▲(1.83% Upside)

The score is primarily supported by strong recent growth and healthy profitability, but held back by negative free cash flow and increased leverage. Technically, the stock shows short-term improvement but remains below key longer-term moving averages with a negative MACD. Valuation is also a headwind due to a high P/E and low dividend yield.

Positive Factors

Strong Recent Revenue Growth

A 70%+ year growth rate signals expanding export demand and higher factory utilization. Sustained top-line expansion supports scale economics, fixed-cost absorption and capacity investments, improving long-term competitiveness if international order streams remain stable.

Healthy Profitability Margins

Robust gross and net margins indicate pricing power and effective cost control across knitting-to-packing operations. Durable margins help absorb input cost swings, fund reinvestment and support cash generation quality over months, underpinning operational resilience.

Export-focused, vertically integrated model

A focused, vertically integrated export model for infant/children’s apparel creates durable advantages: consistent quality control, faster lead times and lower per-unit costs. Specialization supports long-term buyer relationships and repeat orders in global apparel supply chains.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow, likely driven by elevated capex, erodes liquidity and forces reliance on external funding. Over months this can constrain working capital, limit strategic investments or raise refinancing risk if export receipts slow or capex remains high.

Rising Leverage

A D/E around 1.05 reflects materially higher leverage, increasing interest costs and reducing financial flexibility. In a capital-intensive manufacturing business this raises refinancing and covenant risk and limits the firm's ability to withstand demand declines or fund growth without extra financing.

Earnings Volatility / EPS Decline

Negative EPS growth and prior revenue fluctuations highlight earnings cyclicality in export apparel. Dependence on variable international orders can produce volatile margins and cash flows, increasing execution risk and making multi-month planning and investment less predictable.

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

Strong recent revenue growth and healthy/improving profitability margins support the score, but higher leverage (debt-to-equity 1.05) and negative free cash flow raise financial risk and reduce quality of earnings.

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: Neutral
• Last Price: 182.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KITEX, the sentiment is Neutral. The current price of 182.65 is above the 20-day moving average (MA) of 161.87, above the 50-day MA of 182.52, and below the 200-day MA of 219.40, indicating a neutral trend. The MACD of -2.18 indicates Negative momentum. The RSI at 50.88 is Neutral, neither overbought nor oversold. The STOCH value of 77.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹82.03B	20.23	―	1.18%	8.84%	41.74%
SPAL	67 Neutral	₹16.89B	15.29	―	0.28%	34.25%	28.44%
RAJRATAN	66 Neutral	₹20.65B	29.51	―	0.42%	7.76%	-21.05%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KITEX	59 Neutral	₹34.12B	36.55	―	0.27%	20.41%	-6.50%
GOKEX	57 Neutral	₹40.33B	25.88	―	―	22.27%	7.09%
ALOKINDS	40 Underperform	₹75.02B	-11.98	―	―	-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.