Loyal Textile Mills Limited (LOYALTEX) AI Stock Analysis

• Market Cap: ₹1.02B
• Dividend Yield: N/A
• Average Volume (3M): 246.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• 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: 49 Neutral
• Price Target: ₹192.00 ▼(-11.11% Downside)

The score is held down primarily by weak financial performance (declining revenue, negative profitability, and leverage risk). Technicals add only modest support given a short-term stabilization but a longer-term downtrend and negative MACD. Valuation is also a headwind because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Operational cash generation

Consistent positive operating cash flow and improving free cash flow provide durable liquidity to fund working capital and modest capex without immediate external financing. This cash generation cushions operations while restructuring margins and supports short-to-medium term stability.

Vertical manufacturing integration

An integrated yarn-to-fabric/garment business model strengthens control over product quality, input sourcing and mix, enabling margin management and customer retention. Vertical exposure lets the company shift production emphasis by market demand, a lasting operational advantage.

Reasonable equity buffer

Although equity has declined, the reported reasonable equity ratio supplies a structural balance-sheet buffer to absorb operating losses and supports creditor confidence. This reserve improves resilience over months, aiding access to funding if operational recovery is pursued.

Negative Factors

Sharp revenue decline

A steep, durable drop in sales reduces scale economics and weakens fixed-cost absorption, pressuring unit margins and profitability. Lower top-line volume hurts bargaining power with suppliers and customers and makes operational turnaround and deleveraging materially harder over the medium term.

Negative operating profitability

Sustained negative EBITDA and net margins indicate core operations fail to cover costs, eroding equity and limiting reinvestment. Persistent unprofitability increases reliance on cash buffers and financing, and raises execution risk for any restructuring or growth initiatives in the coming months.

Elevated leverage risk

High debt relative to equity raises refinancing and interest coverage risk, especially with declining revenues and negative profits. Leverage restricts strategic flexibility, increases vulnerability to credit stress, and can force asset sales or dilutive funding if cash generation weakens.

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

Overall fundamentals are pressured: revenue declined sharply year over year and profitability weakened into negative margins (EBIT/EBITDA and net margin). Balance sheet risk is elevated with relatively high leverage and declining equity. Offsetting these issues, operating cash flow and free cash flow are positive and improving, supporting near-term liquidity.

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: Positive
• Last Price: 216.00
• 50DMA: Positive
• 100DMA: Positive
• 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:LOYALTEX, the sentiment is Positive. The current price of 216 is above the 20-day moving average (MA) of 206.06, above the 50-day MA of 210.94, and below the 200-day MA of 274.54, indicating a neutral trend. The MACD of 1.10 indicates Negative momentum. The RSI at 69.24 is Neutral, neither overbought nor oversold. The STOCH value of 66.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹1.24B	15.32	―	0.42%	13.13%	-2.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SURYALAXMI	55 Neutral	₹1.14B	20.62	―	―	4.60%	226.64%
AMBICAAGAR	52 Neutral	₹409.85M	81.72	―	―	21.19%	-91.47%
LOYALTEX	49 Neutral	₹1.02B	-8.05	―	―	-30.97%	80.99%
SVPGLOB	46 Neutral	₹455.40M	-0.05	―	―	-85.84%	-93.11%