Loyal Textile Mills Limited (LOYALTEX) AI Stock Analysis

• Market Cap: ₹1.06B
• Dividend Yield: N/A
• Average Volume (3M): 246.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -30.97%
• EPS Growth: 80.99%
• Country: IN
• Employees: 1,854
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): -23.54
• Shares Outstanding: 4,816,446
• 10 Day Avg. Volume: 198
• 30 Day Avg. Volume: 246
• PEG Ratio: -0.07
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 0.78
• 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: 44 Neutral
• Price Target: ₹255.00 ▲(16.97% Upside)

Loyal Textile Mills Limited is facing significant financial and technical challenges. The company's declining revenues, negative profit margins, and high debt levels are major concerns. The technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation issues. Despite some strengths in cash flow management, the overall outlook remains negative.

Positive Factors

Cash Flow Management

Effective cash flow management provides financial stability and flexibility, allowing the company to navigate through challenging periods and invest in growth opportunities.

Economies of Scale

Economies of scale enhance cost efficiency and competitive pricing, supporting long-term profitability and market competitiveness.

Market Reach

Strong market reach through partnerships ensures steady demand and revenue streams, bolstering the company's position in the textile industry.

Negative Factors

Revenue Decline

Declining revenue indicates reduced market demand or competitive pressures, which can impact long-term growth and sustainability.

High Debt Levels

High debt levels can strain financial resources, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Negative Profit Margins

Negative profit margins indicate operational inefficiencies, reducing the company's ability to generate profits and reinvest in business development.

Loyal Textile Mills Limited Business Overview & Revenue Model

Company Description

Loyal Textile Mills Limited (LOYALTEX) is a prominent textile manufacturing company based in Bangladesh, specializing in the production of a diverse range of textile products, including yarn, fabrics, and garments for both domestic and international markets. The company operates in various sectors, such as ready-made garments, home textiles, and industrial textiles, leveraging advanced technology and sustainable practices to deliver high-quality products. LOYALTEX is committed to innovation and customer satisfaction, making it a reputable name in the textile industry.

How the Company Makes Money

Loyal Textile Mills Limited generates revenue primarily through the sale of its textile products, including yarn, fabrics, and finished garments. The company's revenue model is based on direct sales to wholesalers, retailers, and export markets. Key revenue streams include bulk orders from international buyers, contracts with apparel brands, and partnerships with local retailers. Additionally, LOYALTEX benefits from economies of scale due to its large production capacity and efficient supply chain management. The company may also engage in value-added services, such as fabric dyeing and finishing, which contribute to its earnings. Strategic partnerships with suppliers and distributors further enhance its market reach and financial performance.

Loyal Textile Mills Limited Financial Statement Overview

Summary

Loyal Textile Mills Limited faces significant financial challenges, with declining revenue and profitability. Negative profit margins and a high debt-to-equity ratio pose risks. However, positive operating and free cash flows indicate some strengths in cash management.

Income Statement

The income statement shows significant challenges for Loyal Textile Mills Limited, particularly with declining revenue and profitability over the years. The company experienced a negative revenue growth rate from 2024 to 2025, with total revenue falling from 8.96 billion to 6.90 billion. Both the gross profit margin and net profit margin have deteriorated, with the latter being negative in the latest period, indicating operational inefficiencies or cost management issues. Additionally, the EBIT and EBITDA margins are negative, reflecting challenges in maintaining operational profitability.

Balance Sheet

The balance sheet reveals a moderate level of financial stability. The company's debt-to-equity ratio is relatively high due to significant total debt, which poses a risk in a declining revenue environment. Stockholders' equity has decreased over the period, reflecting accumulated losses. However, the equity ratio remains reasonable, suggesting some balance between assets and liabilities. Return on equity is negative, indicating a lack of profitability on shareholder investments.

Cash Flow

Cash flow analysis highlights some strengths in operational cash generation, with positive operating cash flow in the latest period. The free cash flow growth rate is positive, showing improvement in cash management, and the free cash flow to net income ratio is favorable. However, the reliance on cash flow for financial stability is crucial given the negative net income figures. The company has managed capital expenditures well, resulting in positive free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.21B	6.82B	9.20B	13.39B	17.63B	11.22B
Gross Profit	2.08B	-792.51M	3.05B	5.12B	6.07B	4.30B
EBITDA	-8.50M	-17.50M	355.40M	743.24M	2.09B	1.11B
Net Income	-545.90M	-512.40M	-394.97M	28.40M	970.51M	328.40M
Balance Sheet
Total Assets	0.00	8.42B	11.18B	12.95B	12.91B	10.00B
Cash, Cash Equivalents and Short-Term Investments	42.90M	2.32M	11.53M	34.73M	59.10M	41.60M
Total Debt	0.00	4.13B	6.22B	6.62B	6.16B	3.80B
Total Liabilities	-2.69B	5.73B	7.97B	9.35B	9.29B	7.32B
Stockholders Equity	2.69B	2.69B	3.21B	3.60B	3.62B	2.68B
Cash Flow
Free Cash Flow	0.00	1.47B	1.06B	-140.62M	771.47M	888.60M
Operating Cash Flow	0.00	1.48B	1.06B	657.20M	1.09B	1.01B
Investing Cash Flow	0.00	1.10B	-175.28M	-779.40M	-212.10M	-108.10M
Financing Cash Flow	0.00	-2.59B	-929.92M	100.10M	2.43B	-873.80M

Loyal Textile Mills Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 218.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LOYALTEX, the sentiment is Negative. The current price of 218 is below the 20-day moving average (MA) of 239.62, below the 50-day MA of 266.89, and below the 200-day MA of 281.52, indicating a bearish trend. The MACD of -13.66 indicates Positive momentum. The RSI at 31.43 is Neutral, neither overbought nor oversold. The STOCH value of 17.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LOYALTEX.

Loyal Textile Mills Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAMBODHARA	69 Neutral	₹1.38B	19.22	―	0.39%	13.13%	-2.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SURYALAXMI	55 Neutral	₹1.12B	20.39	―	―	4.60%	226.64%
AMBICAAGAR	52 Neutral	₹444.72M	87.14	―	―	21.19%	-91.47%
SVPGLOB	45 Neutral	₹784.30M	―	―	―	-85.84%	-93.11%
LOYALTEX	44 Neutral	₹1.06B	―	―	―	-30.97%	80.99%