Sutlej Textiles & Industries Ltd. (SUTLEJTEX) AI Stock Analysis

• Market Cap: ₹4.80B
• Dividend Yield: N/A
• Average Volume (3M): 4.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: -1.07%
• EPS Growth: -5.16%
• Country: IN
• Employees: 12,899
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.99
• Shares Outstanding: 163,828,630
• 10 Day Avg. Volume: 3,036
• 30 Day Avg. Volume: 4,252
• PEG Ratio: 0.17
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 910.39
• 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: 47 Neutral
• Price Target: ₹31.00 ▼(-3.22% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is primarily held back by weak financial performance (declining revenue and ongoing losses/negative ROE). Technicals are mixed with negative MACD and price below longer-term averages, while valuation is also constrained by loss-making results and no dividend yield data.

Positive Factors

Improving gross margins / cost management

Sustained improvement in gross margins reflects better cost control, input sourcing or favorable product mix. Over 2-6 months this supports margin resilience even if volumes fluctuate, helping convert revenue into operating cash and providing runway for reinvestment or margin-focused initiatives.

Strong operating cash generation relative to reported losses

A strong operating cash flow-to-net-income ratio indicates cash conversion resilience despite accounting losses. This durable cash generation ability supports working capital needs and capex without immediate heavy external financing, giving flexibility to manage textile cyclicality and pursue operational improvements.

Moderate financial leverage and reasonable equity financing

A moderate debt profile and a reasonable equity ratio provide balance-sheet stability, reducing short-term solvency risk. Over months this allows management to prioritize operational fixes or selective investments rather than urgent deleveraging, supporting continuity through sector cyclicality.

Negative Factors

Recent revenue decline and inconsistent top-line

A falling and inconsistent revenue trend undermines scale economics and capacity utilization in spinning operations. Persisting top-line weakness over the medium term reduces fixed-cost absorption, pressures margins and cashflow, and requires clear demand recovery or market-share gains to restore growth.

Ongoing net losses and negative ROE

Sustained net losses and negative return on equity erode retained earnings and limit the firm's ability to self-fund growth or return capital. Over months this constrains strategic investments, weakens investor confidence, and may force difficult trade-offs between capex, working capital and debt servicing.

Declining operating cash flow impacting free cash flow

A decline in operating cash flow that reduces free cash flow restricts the company's ability to invest in productivity-enhancing capex or modernize plants. In capital-intensive textiles this can impair long-term competitiveness and may necessitate external financing or asset sales, increasing financial risk.

Sutlej Textiles & Industries Ltd. Business Overview & Revenue Model

Company Description

Sutlej Textiles and Industries Limited engages in the manufacture and sale of yarns and home textiles in India. The company operates through two segments, Yarn and Home Textiles. It offers various yarns, including polyester, viscose, acrylic, modal and tencel, cotton mélange and cone-dyed, polyester/viscose, polyester/cotton, acrylic/cotton, polyester/acrylic, modal/cotton, modal/polyester, viscose/cotton, and bamboo/cotton yarns; and micro-polyester, micro-acrylic, micro-modal, hamel covered, low piling, carpet backing and pile, ready-to-dye package, cationic dyeable, bamboo, and soy milk fiber yarns. The company also provides home textiles, such as curtains, cushions, throws, table covers and mats, runners, duvets, comforters; drapery fabrics; upholstery fabrics; made-ups comprising cushions, throws, curtains, bed scarves, shams, quilts and quilting materials, and chenille items; and finishes consisting of fire retardants, insect repellents, scotchgard protection finishes, aero and decca finishes, soil repellents, and bio and aroma finishes. In addition, it manufactures and sells raw white, black, and dope dyed polyester staple fiber by recycling of pet bottles. The company also exports its products to approximately 62 countries. Sutlej Textiles and Industries Limited was founded in 1934 and is based in Mumbai, India.

How the Company Makes Money

Sutlej Textiles & Industries Ltd. generates revenue through multiple streams, primarily from the sale of its textile products, including yarns and fabrics. The company has established a strong presence in both domestic and export markets, allowing it to capitalize on growing global demand for textiles. Key revenue streams include the sale of cotton and blended yarns to garment manufacturers, fabric sales to apparel brands, and home textile products to retailers. Additionally, Sutlej Textiles has formed significant partnerships with various distributors and retailers, enhancing its market reach. The company also benefits from operational efficiencies and cost management practices that improve profit margins, contributing positively to its overall earnings.

Sutlej Textiles & Industries Ltd. Financial Statement Overview

Summary

Financials are mixed: improving gross margins and some cash-flow resilience are positives, but recent revenue decline, negative net profitability, and negative ROE meaningfully weaken the overall profile.

Income Statement

Sutlej Textiles & Industries Ltd. has shown inconsistent revenue trends with a recent decline in total revenue. The gross profit margin has improved significantly over time, indicating better cost management. However, the net profit margin remains negative due to significant net losses in recent years, reflecting ongoing challenges in profitability. The EBIT margin has also fluctuated, highlighting operational volatility.

Balance Sheet

The company's balance sheet reflects moderate financial leverage, with a stable debt-to-equity ratio despite fluctuations in total debt. The equity ratio suggests that a reasonable proportion of the firm's assets are financed by equity, providing some financial stability. However, the return on equity is negative, reflecting the net losses and indicating challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals a decline in operating cash flow, impacting free cash flow growth. The operating cash flow to net income ratio is strong, suggesting efficient cash generation relative to reported net losses. Despite challenges in free cash flow due to capital expenditures, the company has managed to maintain some level of free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.80B	26.25B	26.53B	30.27B	30.76B	18.66B
Gross Profit	391.70M	759.30M	-248.40M	3.19B	14.22B	7.39B
EBITDA	379.70M	662.80M	-197.10M	2.51B	4.12B	1.33B
Net Income	-902.10M	-684.00M	-1.36B	372.80M	1.50B	-36.60M
Balance Sheet
Total Assets	19.63B	20.51B	21.09B	24.32B	24.25B	21.39B
Cash, Cash Equivalents and Short-Term Investments	185.10M	191.00M	210.50M	239.20M	134.70M	110.90M
Total Debt	8.25B	8.79B	8.46B	9.53B	9.43B	9.09B
Total Liabilities	11.18B	11.56B	11.48B	13.23B	13.25B	11.84B
Stockholders Equity	8.45B	8.95B	9.61B	11.09B	11.00B	9.55B
Cash Flow
Free Cash Flow	801.90M	6.30M	1.66B	535.30M	95.00M	-128.60M
Operating Cash Flow	1.09B	660.30M	2.22B	1.96B	950.20M	887.40M
Investing Cash Flow	-217.60M	-250.30M	-382.50M	-1.18B	-756.00M	-915.40M
Financing Cash Flow	-886.80M	-319.60M	-1.90B	-805.80M	-184.20M	33.70M

Sutlej Textiles & Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.03
• 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:SUTLEJTEX, the sentiment is Negative. The current price of 32.03 is above the 20-day moving average (MA) of 30.58, above the 50-day MA of 30.13, and below the 200-day MA of 35.71, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 53.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUTLEJTEX.

Sutlej Textiles & Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PREMIERPOL	77 Outperform	₹6.20B	11.68	―	0.37%	3.39%	6.48%
TPLPLASTEH	71 Outperform	₹5.05B	15.16	―	1.49%	14.78%	19.77%
PRECOT	65 Neutral	₹6.00B	20.25	―	0.70%	-8.05%	-23.39%
INDOBORAX	63 Neutral	₹7.96B	24.50	―	0.38%	12.35%	6.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
VISAKAIND	59 Neutral	₹4.93B	79.94	―	0.74%	6.79%	―
SUTLEJTEX	47 Neutral	₹4.80B	-8.15	―	―	-1.07%	-5.16%

Sutlej Textiles & Industries Ltd. Corporate Events

Sutlej Textiles Schedules Q3 and 9M FY26 Earnings Call for February 13

Sutlej Textiles & Industries Ltd. has announced that it will hold an earnings conference call to discuss its financial performance for the third quarter and nine months ended FY26 on 13 February 2026 at 11:00 a.m. IST, with senior leadership including the CEO, COO and CFO participating. The scheduled call underscores the company’s ongoing engagement with investors and analysts, providing a formal platform for management to communicate recent business developments, operational trends and financial results that could influence stakeholder assessment of its performance and outlook within the textile sector.