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

• Market Cap: ₹5.25B
• Dividend Yield: N/A
• Average Volume (3M): 4.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• 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: 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)

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

Sustained improvement in gross margins signals stronger cost management and better yarn-mix realization. Over 2-6 months this raises the structural ability to absorb fiber and energy cost swings, supports operating leverage as volumes recover, and bolsters long-term margin sustainability.

Cash Generation Efficiency

A robust OCF-to-net-income ratio indicates the business converts earnings (or accounting losses) into cash, providing runway to fund working capital and capex without immediate recapitalization. This cash resilience supports durability through textile cycles and restructuring timelines.

Moderate Financial Leverage

Moderate leverage and a reasonable equity base reduce refinancing risk and preserve strategic flexibility. Over the medium term this financial conservatism helps the company withstand cyclical demand, fund targeted investments, and avoids acute balance-sheet stress during recovery phases.

Negative Factors

Declining Revenue Trend

A recent top-line decline and inconsistent revenue trajectory undermine scale and fixed-cost absorption. Structurally weak sales limit the company's ability to convert margin improvements into sustainable profit, making long-term recovery reliant on sustained volume growth or higher-value product mix shifts.

Negative Profitability & ROE

Ongoing net losses and a negative ROE indicate the company is not generating shareholder returns and is eroding equity. Persisting unprofitability constrains reinvestment, dividend capacity, and forces management to prioritize restructuring or external funding to restore long-term value creation.

Weakening Cash Flow Growth

Falling operating cash flow and constrained free cash flow reduce internal funding for capex and working capital, increasing reliance on external financing. Structurally this raises liquidity and execution risk for capacity upgrades or efficiency projects needed to return to sustained profitability.

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	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: Positive
• Last Price: 32.03
• 50DMA: Positive
• 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 Positive. The current price of 32.03 is above the 20-day moving average (MA) of 28.91, above the 50-day MA of 31.24, and below the 200-day MA of 36.97, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 60.74 is Neutral, neither overbought nor oversold. The STOCH value of 57.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
TPLPLASTEH	71 Outperform	₹4.85B	18.87	―	1.49%	14.78%	19.77%
PREMIERPOL	69 Neutral	₹5.23B	18.28	―	0.37%	3.39%	6.48%
PRECOT	65 Neutral	₹5.67B	15.08	―	0.70%	-8.05%	-23.39%
INDOBORAX	63 Neutral	₹7.87B	17.52	―	0.38%	12.35%	6.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
VISAKAIND	59 Neutral	₹5.64B	11.69	―	0.74%	6.79%	―
SUTLEJTEX	47 Neutral	₹5.25B	-5.82	―	―	-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.