Loyal Textile Mills Limited (LOYALTEX) AI Stock Analysis

• Market Cap: ₹1.05B
• Dividend Yield: N/A
• Average Volume (3M): 246.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -30.97%
• EPS Growth: 80.99%
• Country: IN
• Employees: 1,854
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): -41.77
• 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: 56 Neutral
• Price Target: ₹224.00 ▲(3.70% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is held back primarily by weak financial performance (declining revenue, losses, and balance-sheet leverage), partially offset by solid technical momentum (price above major moving averages with positive MACD). Valuation is also constrained by negative earnings and no provided dividend yield.

Positive Factors

Operational Cash Generation

Positive operating cash flow indicates the core textile operations are generating real cash despite accounting losses. Durable cash generation supports working capital, liquidity and near-term obligations, enabling the company to fund operations and service debt while pursuing restructuring or efficiency gains.

Free Cash Flow & CapEx Discipline

Consistent positive free cash flow and disciplined capex reduce the need for external financing and provide flexibility to deleverage or reinvest. Over a 2-6 month horizon, this strengthens operational resilience, permits targeted reinvestment, and cushions the business against temporary revenue volatility.

Integrated Textile Manufacturing Model

A vertically integrated model spanning yarn to fabric/garments allows Loyal to capture value across the chain, optimize input use and offer customers end-to-end supply. This structural positioning supports durable demand access and margin recovery potential versus single-stage peers.

Negative Factors

Declining Revenue

A one-third revenue decline materially reduces scale and weakens fixed-cost absorption in textile manufacturing. Sustained top-line contraction constrains cash flow upside, limits pricing power and raises execution risk for any turnaround initiatives over the coming months.

Negative Profitability & Margins

Persistent negative operating and net margins signal structural cost or pricing weaknesses. In a capital- and labor-intensive industry, failing to restore positive margins erodes equity, reduces reinvestment capacity and undermines long-term viability absent meaningful cost or demand recovery.

High Leverage & Eroding Equity

Elevated debt combined with declining shareholders' equity increases refinancing and solvency risk if revenues remain weak. Higher leverage raises interest burdens, can constrain strategic choices and amplifies downside in a cyclical textile market over the medium term.

Loyal Textile Mills Limited Business Overview & Revenue Model

Company Description

Loyal Textile Mills Limited manufactures and sells yarn, woven fabric, knitted fabric, and technical clothing for the textile and apparel industries in India. The company operates through two segments, Manufacturing and Trading. It offers yarn products, such as raw white, melange, and specialty yarns; a range of fabric products including cotton, polyester blended, modal/tencal blended, viscose, and elastane fabrics; and garment products comprising corporate and work wear, hospital garments, hotel garments, and protective garments. The company provides home textile products, including special stiches comprising merrowing, picotting, double needle, self hem, self piping, reverse hem, reverse piping and jacquard hem; special finishes comprising down proof, crease resistant, calendaring, silicon finish, and bio-polish finish; and organic cotton, as well as face masks and personal protective equipment kits. It also exports its products to Asia, Europe, the Americas, and internationally. The company was incorporated in 1946 and is based in Kovilpatti, India.

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

Financials are pressured by declining revenue and negative profitability (negative net margin, EBIT and EBITDA margins). Balance sheet risk is elevated with relatively high debt-to-equity and declining equity, though cash flow is a relative bright spot with positive operating and free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 216.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 216 is below the 20-day moving average (MA) of 245.13, below the 50-day MA of 222.75, and below the 200-day MA of 271.13, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 32.76 is Neutral, 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	₹1.03B	13.04	―	0.42%	13.13%	-2.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LOYALTEX	56 Neutral	₹1.05B	-1.31	―	―	-30.97%	80.99%
SURYALAXMI	55 Neutral	₹1.05B	53.55	―	―	4.60%	226.64%
AMBICAAGAR	52 Neutral	₹416.55M	19.54	―	―	21.19%	-91.47%
SVPGLOB	39 Underperform	₹371.91M	-0.22	―	―	-85.84%	-93.11%