Lagnam Spintex Ltd. (LAGNAM) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 0.71%
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: 2.86%
• EPS Growth: -4.55%
• Country: IN
• Employees: 835
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.21
• Shares Outstanding: N/A
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: -1.13
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 8.30
• 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: 54 Neutral
• Price Target: ―

The score is primarily held back by high leverage and thin/declining net profitability despite improving operating performance and a rebound to positive free cash flow. A reasonable P/E and modest dividend yield provide valuation support, while missing technical data limits momentum-based confidence.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Operating Efficiency

Steady operating margins suggest effective cost management and operational efficiency, supporting sustainable profitability.

Positive Free Cash Flow

Positive free cash flow enhances financial flexibility, allowing for reinvestment and debt reduction, strengthening long-term stability.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases vulnerability to economic downturns, posing a risk to long-term viability.

Net Margin Compression

Declining net margins indicate rising costs or inefficiencies, potentially affecting profitability and competitive positioning.

Weak Cash Flow Relative to Debt

Low cash flow relative to debt suggests limited capacity for natural deleveraging, increasing reliance on external financing.

Lagnam Spintex Ltd. Business Overview & Revenue Model

Company Description

Lagnam Spintex Limited manufactures and sells cotton yarns in India. Its products are used in various applications, such as denims, terry towels, home textiles, bottom wears, sheetings, sweaters, socks, weaving and knitting, industrial fabrics, etc. The company exports its products to Portugal, Italy, Germany, Turkey, Egypt, Belgium, South Africa, Slovania, Columbia, China, Pakistan, Bangladesh, South Korea, Peru, Guatemala, and other countries. Lagnam Spintex Limited was incorporated in 2010 and is based in Bhilwara, India.

How the Company Makes Money

Lagnam Spintex Ltd. generates revenue primarily through the sale of its yarn and fabric products to wholesalers, retailers, and manufacturers in the textile sector. The company benefits from a diverse customer base, allowing it to tap into multiple segments of the market. Key revenue streams include direct sales of finished yarn and fabric, as well as potential long-term contracts with textile manufacturers who require a steady supply of raw materials. Additionally, LAGNAM may engage in export activities, capitalizing on international demand for its products, thus enhancing its earning potential. Strategic partnerships with distributors and suppliers further bolster its revenue by expanding market reach and ensuring a consistent supply chain.

Lagnam Spintex Ltd. Financial Statement Overview

Summary

Operating fundamentals are improving (strong prior-year revenue growth, EBITDA margin ~10–11%, and FY2025 free cash flow turning positive), but the balance sheet is a major constraint with elevated leverage (debt-to-equity ~3.21x) and net margin compressing to ~2.1%, leaving the company more sensitive to financing costs and cyclicality.

Income Statement

Revenue growth has been strong over the cycle, with FY2025 revenue up ~2.2% and FY2024 up ~43.6% (following a FY2022 decline). Profitability is mixed: gross margin improved to ~27.6% in FY2025 (from ~22.2% in FY2024), but net margin compressed to ~2.1% in FY2025 (from ~3.3% in FY2024), signaling higher below-the-line costs and/or financing burden. Operating profitability is steady-to-improving (EBITDA margin ~10–11%), but the sharp drop in net income versus EBIT points to weaker earnings quality in the most recent year.

Balance Sheet

Leverage is the key constraint: debt-to-equity is elevated at ~3.21x in FY2025 (and ~3.47x in FY2024), leaving limited balance-sheet flexibility for a cyclical manufacturing business. While equity has grown over time and return on equity is positive (~10.6% in FY2025), it has trended down from FY2024 (~13.4%), suggesting incremental profitability is not keeping pace with the capital structure risk. Asset growth is notable, but the overall financial profile remains debt-heavy.

Cash Flow

Cash generation is uneven. FY2025 free cash flow is positive (~206M) and reasonably aligned with earnings (free cash flow to net income ~0.86x), a clear improvement versus FY2024 when free cash flow was deeply negative (~-1.79B). However, operating cash flow relative to the debt load remains light (operating cash flow to total debt ~0.11x in FY2025), implying slower natural deleveraging capacity and continued reliance on refinancing/working-capital discipline.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.86B	6.06B	4.38B	2.98B	3.39B	2.04B
Gross Profit	1.68B	1.67B	973.03M	826.40M	790.80M	434.68M
EBITDA	647.68M	653.04M	450.79M	310.31M	589.44M	263.15M
Net Income	132.48M	128.55M	145.73M	97.63M	287.99M	44.74M
Balance Sheet
Total Assets	0.00	5.70B	5.33B	3.11B	2.80B	2.49B
Cash, Cash Equivalents and Short-Term Investments	802.00K	802.00K	2.69M	3.23M	42.04M	5.02M
Total Debt	0.00	3.88B	3.78B	1.84B	1.64B	1.68B
Total Liabilities	-1.21B	4.49B	4.25B	2.17B	1.95B	1.91B
Stockholders Equity	1.21B	1.21B	1.09B	942.88M	853.63M	588.69M
Cash Flow
Free Cash Flow	0.00	205.91M	-1.79B	-125.06M	205.25M	55.80M
Operating Cash Flow	0.00	240.71M	218.05M	128.77M	231.28M	58.95M
Investing Cash Flow	0.00	-33.68M	-2.00B	-251.02M	-22.02M	736.00K
Financing Cash Flow	0.00	-208.92M	1.79B	84.61M	-174.28M	-60.05M

Lagnam Spintex Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAMBODHARA	69 Neutral	₹1.15B	14.26	―	0.42%	13.13%	-2.13%
MANOMAY	69 Neutral	₹4.05B	20.91	―	―	8.41%	8.81%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
LAGNAM	54 Neutral	―	―	―	0.71%	2.86%	-4.55%
BASML	47 Neutral	₹1.96B	13.96	―	―	-8.50%	―
SUPERSPIN	46 Neutral	₹436.15M	-2.77	―	―	-9.14%	-16.81%
SVPGLOB	46 Neutral	₹389.62M	-0.04	―	―	-85.84%	-93.11%