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

• Market Cap: ₹5.76B
• Dividend Yield: N/A
• Average Volume (3M): 4.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: -1.07%
• EPS Growth: -5.16%
• Country: IN
• Employees: 12,899
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): -1.33
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹34.00 ▲(0.59% Upside)

Sutlej Textiles & Industries Ltd. faces significant challenges, primarily due to its negative profitability and bearish technical indicators. The financial performance is hindered by inconsistent revenue and negative returns on equity, while the valuation is unattractive due to a negative P/E ratio and lack of dividends. These factors collectively result in a low overall stock score.

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

Sutlej Textiles & Industries Ltd. faces profitability challenges despite improvements in gross profit margins and cost management. The balance sheet reflects moderate leverage and stable equity financing, but negative returns on equity pose a concern for shareholder value. Cash flow management shows resilience, but the company must address revenue inconsistencies and profitability issues to enhance financial health and investor confidence.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.24B	26.25B	26.53B	30.27B	30.76B	18.66B
Gross Profit	2.57B	759.30M	-248.40M	3.19B	14.22B	7.39B
EBITDA	406.10M	662.80M	-197.10M	2.51B	4.12B	1.33B
Net Income	-871.00M	-684.00M	-1.36B	372.80M	1.50B	-36.60M
Balance Sheet
Total Assets	0.00	20.51B	21.09B	24.32B	24.25B	21.39B
Cash, Cash Equivalents and Short-Term Investments	191.00M	191.00M	210.50M	239.20M	134.70M	110.90M
Total Debt	0.00	8.79B	8.46B	9.53B	9.43B	9.09B
Total Liabilities	-8.95B	11.56B	11.48B	13.23B	13.25B	11.84B
Stockholders Equity	8.95B	8.95B	9.61B	11.09B	11.00B	9.55B
Cash Flow
Free Cash Flow	0.00	6.30M	1.66B	535.30M	95.00M	-128.60M
Operating Cash Flow	0.00	660.30M	2.22B	1.96B	950.20M	887.40M
Investing Cash Flow	0.00	-250.30M	-382.50M	-1.18B	-756.00M	-915.40M
Financing Cash Flow	0.00	-319.60M	-1.90B	-805.80M	-184.20M	33.70M

Sutlej Textiles & Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.80
• 50DMA: Negative
• 100DMA: Negative
• 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:SUTLEJTEX, the sentiment is Negative. The current price of 33.8 is below the 20-day moving average (MA) of 34.60, below the 50-day MA of 35.96, and below the 200-day MA of 40.68, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 40.33 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
INDOBORAX	72 Outperform	₹8.17B	21.10	―	0.40%	-3.77%	-9.19%
TPLPLASTEH	71 Outperform	₹5.50B	22.36	―	1.49%	12.96%	18.93%
PRECOT	69 Neutral	₹5.66B	16.28	―	0.63%	-5.18%	18.80%
VISAKAIND	63 Neutral	₹7.04B	17.97	―	0.63%	3.58%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PREMIERPOL	61 Neutral	₹4.40B	16.86	―	0.38%	3.49%	20.36%
SUTLEJTEX	45 Neutral	₹5.76B	-6.61	―	―	-1.07%	-5.16%

Sutlej Textiles & Industries Ltd. Corporate Events

Sutlej Textiles Faces Credit Rating Downgrade Amid Financial Challenges

Sutlej Textiles and Industries Limited announced a downgrade in its long-term issuer credit rating by India Ratings and Research to ‘IND A’ with a Negative Outlook. This downgrade reflects expectations of lower-than-anticipated improvements in EBITDA over the next few fiscal years, leading to high net adjusted leverage and low interest coverage. The company’s planned capital expenditures for modernization and value-added products are expected to increase debt levels, although these investments are contingent on cash generation and funding. Despite these challenges, the company maintains financial flexibility to manage liquidity through additional loans and working capital adjustments.