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Sanathan Textiles Limited (IN:SANATHAN)
:SANATHAN
India Market
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Sanathan Textiles Limited (SANATHAN) AI Stock Analysis

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IN:SANATHAN

Sanathan Textiles Limited

(SANATHAN)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
₹445.00
▲(4.22% Upside)
Action:N/A
Date:05/22/26
The score is held back primarily by weak cash-flow quality (deeply negative free cash flow and limited debt coverage) and soft technical momentum (trading below key moving averages with negative MACD). Strong revenue growth and improved gross margin in 2026 provide partial support, but a high P/E and thin net margins keep the overall profile mixed.
Positive Factors
Revenue & gross margin expansion
A large, sustained revenue step-up with simultaneous gross margin expansion indicates stronger product pricing or mix and improved scale economics. Over 2-6 months this supports durable earnings capacity, better absorption of fixed costs, and a stronger base for reinvestment and margin resilience.
Negative Factors
Deeply negative free cash flow
Deeply negative free cash flow means reported profits are not converting into distributable cash after investments. This creates ongoing financing needs, raises refinancing risk, and can constrain capital returns or strategic investments unless cash conversion improves materially.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & gross margin expansion
A large, sustained revenue step-up with simultaneous gross margin expansion indicates stronger product pricing or mix and improved scale economics. Over 2-6 months this supports durable earnings capacity, better absorption of fixed costs, and a stronger base for reinvestment and margin resilience.
Read all positive factors

Sanathan Textiles Limited (SANATHAN) vs. iShares MSCI India ETF (INDA)

Sanathan Textiles Limited Business Overview & Revenue Model

Company Description
Sanathan Textiles Limited, operating through its subsidiaries, is a leading entity specializing in the global production and distribution of various yarn types. Established in Mumbai, India, in 2005, the company serves both domestic and internatio...
How the Company Makes Money
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Sanathan Textiles Limited Financial Statement Overview

Summary
Income statement strength (revenue up ~156.5% in 2026 and gross margin expansion to ~24.4%) is offset by thin net margins (~2.0%), rising leverage (debt-to-equity ~0.81), and especially weak cash conversion with deeply negative free cash flow (about -3.86B) and low operating cash flow coverage of debt (~16%).
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
BreakdownTTMMar 2025Mar 2025
Income Statement
Total Revenue14.86B38.11B29.34B
Gross Profit-281.50M9.29B3.68B
EBITDA1.42B3.04B2.80B
Net Income637.70M773.50M18.76M
Balance Sheet
Total Assets40.82B47.14B413.06M
Cash, Cash Equivalents and Short-Term Investments1.31B1.69B1.38B
Total Debt14.35B15.12B10.84B
Total Liabilities22.33B28.42B17.20B
Stockholders Equity18.49B18.72B18.08B
Cash Flow
Free Cash Flow-8.63B-3.86B-135.36M
Operating Cash Flow2.42B2.28B31.67M
Investing Cash Flow-10.56B-6.37B-4.75B
Financing Cash Flow7.97B3.88B2.65B

Sanathan Textiles Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
₹13.96B156.270.06%
57
Neutral
₹1.92B18.820.33%5.52%-15.33%
57
Neutral
₹8.45B13.04
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
50
Neutral
₹7.62B41.276.20%94.17%
48
Neutral
₹37.42B48.2827.10%-54.24%
48
Neutral
₹4.46B34.04
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SANATHAN
Sanathan Textiles Limited
443.30
-103.15
-18.88%
IN:ABCOTS
AB Cotspin India Ltd.
203.25
-237.15
-53.85%
IN:GLOSTERLTD
Gloster Ltd.
696.75
25.10
3.74%
IN:PASHUPATI
Pashupati Cotspin Ltd.
88.45
18.73
26.86%
IN:SHIVATEX
Shiva Texyarn Limited
148.00
-57.74
-28.06%
IN:BORANA
Borana Weaves Limited
317.15
89.10
39.07%

Sanathan Textiles Limited Corporate Events

Sanathan Textiles Files SEBI Compliance Certificate, Reports Stable Share Activity
Jul 6, 2026
Sanathan Textiles Limited has submitted to the NSE and BSE a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended June 30, 2026. The certificate, issued by its registrar ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 22, 2026