Kitex Garments Limited (KITEX) AI Stock Analysis

• Market Cap: ₹38.14B
• Dividend Yield: 0.26%
• Average Volume (3M): 278.31K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 1.67
• 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: 251,732
• 30 Day Avg. Volume: 278,305
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹233.00
• Price Target Upside: 21.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ₹233.00 ▲(21.86% Upside)

Kitex Garments' strong financial performance, characterized by robust revenue growth and profitability, is offset by financial risks such as increased leverage and negative free cash flow. The technical analysis indicates potential stability with bullish momentum, but the high valuation and low dividend yield limit attractiveness.

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 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 profit margins. However, increased leverage and negative free cash flow pose financial risks that need management.

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 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.44B	9.83B	5.77B	7.46B	5.57B	4.28B
Gross Profit	3.31B	3.86B	951.52M	3.70B	2.92B	2.29B
EBITDA	1.74B	2.19B	1.13B	1.96B	1.04B	1.04B
Net Income	998.55M	1.39B	563.31M	1.25B	575.54M	542.73M
Balance Sheet
Total Assets	22.74B	25.87B	19.25B	9.94B	11.34B	7.87B
Cash, Cash Equivalents and Short-Term Investments	756.36M	676.99M	692.34M	1.08B	1.07B	1.04B
Total Debt	8.78B	10.82B	6.81B	730.65M	250.00M	0.00
Total Liabilities	11.61B	13.77B	8.93B	1.82B	1.57B	916.68M
Stockholders Equity	9.59B	10.33B	9.05B	8.12B	8.58B	6.96B
Cash Flow
Free Cash Flow	103.97M	-4.62B	-6.55B	-241.14M	-1.21B	1.07B
Operating Cash Flow	103.97M	429.43M	-382.55M	29.98M	2.95B	1.16B
Investing Cash Flow	0.00	-4.56B	-6.07B	-610.15M	-4.14B	-84.08M
Financing Cash Flow	0.00	4.03B	6.50B	599.07M	570.24M	-987.74M

Kitex Garments Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 191.20
• 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 Negative. The current price of 191.2 is below the 20-day moving average (MA) of 198.51, below the 50-day MA of 206.55, and below the 200-day MA of 228.24, indicating a bearish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 24.65 is Neutral, 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	80.31B	21.83	9.34%	1.22%	10.23%	18.42%
RAJRATAN	66 Neutral	16.53B	28.96	10.52%	0.61%	6.05%	-23.51%
SPAL	65 Neutral	17.88B	18.30	11.11%	0.28%	43.15%	5.38%
KITEX	64 Neutral	₹38.14B	30.12	―	0.26%	49.50%	74.50%
GOKEX	64 Neutral	54.02B	30.59	7.62%	―	39.03%	21.59%
ALOKINDS	44 Neutral	86.54B	-11.08	3.96%	―	-28.55%	5.61%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Kitex Garments Limited Corporate Events

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.