Loyal Textile Mills Limited (LOYALTEX) AI Stock Analysis

• Market Cap: ₹984.72M
• Dividend Yield: N/A
• Average Volume (3M): 246.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• 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: ₹204.00 ▼(-5.56% Downside)
• 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

Operating Cash Generation

The company reports positive operating cash flow and positive free cash flow growth, indicating it can convert sales into cash despite accounting losses. Durable cash generation funds working capital and capex, easing short-term liquidity and supporting run-rate operations and gradual deleveraging.

Diversified Textile Operations

Loyal operates across spinning (yarn) and downstream fabric/garment production, providing multiple revenue channels and internal demand capture. This vertical breadth supports customer retention, supply-chain control and operational flexibility that can stabilize revenues over several quarters.

Reasonable Equity Ratio

Despite accumulated losses, the balance sheet retains a reasonable equity ratio, offering a structural buffer between assets and liabilities. That residual equity supports creditor negotiations, access to working capital and continuity of operations while management addresses profitability and leverage.

Negative Factors

Declining Revenue

Revenue contraction is material and persistent, reducing scale and eroding top-line stability. Lower sales shrink capacity utilization and bargaining power with buyers, making margin recovery harder and prolonging the timeline for meaningful operating leverage improvements over the next several quarters.

Negative Profitability

Sustained negative net, EBIT and EBITDA margins indicate the business currently fails to cover operating costs. Prolonged unprofitability depletes retained earnings, limits internal reinvestment and increases dependence on cash reserves or external funding to maintain operations and execute strategic plans.

High Leverage Risk

Elevated debt relative to equity and declining shareholder equity heighten refinancing and interest-coverage risk. In a cyclical textile sector, high leverage reduces strategic flexibility, raises default vulnerability if cash flow weakens, and may force asset sales or cost cutting to restore balance.

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

LOYALTEX makes money primarily by manufacturing textile goods and selling them to other businesses (and, where applicable, institutional or retail channels). Key revenue streams typically include (1) sales of yarn produced from spinning operations, and (2) sales of fabric and/or made-ups/garments produced through downstream processing and stitching (to the extent these operations are part of its product mix). Revenue is recognized from the sale of finished textile products, with pricing driven by order volumes, product specifications (count, composition, quality), and prevailing raw-material and textile market conditions. Additional contributors to earnings may include export sales (if the company exports), which can affect realizations due to foreign-currency pricing and demand in overseas markets; however, specific export share, customer concentration, or named partnerships are null. Significant partnerships or customer contracts are null.

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	5.43B	6.82B	9.20B	13.39B	17.63B	11.22B
Gross Profit	2.25B	-792.51M	3.05B	5.12B	6.07B	4.30B
EBITDA	310.30M	-17.50M	355.40M	743.24M	2.09B	1.11B
Net Income	-152.00M	-512.40M	-394.97M	28.40M	970.51M	328.40M
Balance Sheet
Total Assets	7.08B	8.42B	11.18B	12.95B	12.91B	10.00B
Cash, Cash Equivalents and Short-Term Investments	702.20M	2.32M	11.53M	34.73M	59.10M	41.60M
Total Debt	3.31B	4.13B	6.22B	6.62B	6.16B	3.80B
Total Liabilities	4.67B	5.73B	7.97B	9.35B	9.29B	7.32B
Stockholders Equity	2.41B	2.69B	3.21B	3.60B	3.62B	2.68B
Cash Flow
Free Cash Flow	668.60M	1.47B	1.06B	-140.62M	771.47M	888.60M
Operating Cash Flow	682.00M	1.48B	1.06B	657.20M	1.09B	1.01B
Investing Cash Flow	499.50M	1.10B	-175.28M	-779.40M	-212.10M	-108.10M
Financing Cash Flow	-999.80M	-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: 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 216 is above the 20-day moving average (MA) of 215.55, below the 50-day MA of 221.15, and below the 200-day MA of 266.31, indicating a bearish trend. The MACD of -8.67 indicates Positive momentum. The RSI at 36.59 is Neutral, neither overbought nor oversold. The STOCH value of 13.56 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
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LAMBODHARA	62 Neutral	₹925.68M	13.04	―	0.42%	13.13%	-2.13%
LOYALTEX	56 Neutral	₹984.72M	-1.31	―	―	-30.97%	80.99%
SURYALAXMI	55 Neutral	₹940.08M	53.55	―	―	4.60%	226.64%
AMBICAAGAR	52 Neutral	₹373.61M	19.54	―	―	21.19%	-91.47%
SVPGLOB	39 Underperform	₹318.78M	-0.22	―	―	-85.84%	-93.11%