Vaxtex Cotfab Ltd (VCL) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.84
• Revenue Growth: 348.82%
• EPS Growth: N/A
• Country: IN
• Employees: 36
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.21
• Shares Outstanding: 183,752,210
• 10 Day Avg. Volume: 5,717,459
• 30 Day Avg. Volume: 2,074,626
• PEG Ratio: -0.14
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 2.55
• P/FCF Ratio: 11.54
• 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: 62 Neutral
• Price Target: ₹2.00 ▲(16.28% Upside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is held back primarily by weak operating performance (large revenue decline, very low gross margin, and negative EBIT margin). This is partially offset by improved cash flow quality and manageable leverage, while technical indicators show strong upward momentum; valuation appears moderate with no dividend yield data to provide support.

Positive Factors

Improved cash flow quality

The company converted profits into cash efficiently (OCF/net income 1.32) and recovered free cash flow. Durable cash generation supports working capital, funds capex or restructuring, and reduces reliance on external funding during a multi-quarter recovery.

Manageable leverage

A debt-to-equity ratio around 0.61 indicates moderate leverage that should keep interest burdens manageable. This structural flexibility gives management room to invest in turnaround initiatives or weather cyclical apparel demand without immediate refinancing pressure.

Reasonable equity cushion

An equity ratio near 38% provides a tangible capital buffer to absorb losses and support ongoing operations. For an apparel manufacturer facing volatility, this structural equity base improves solvency and the ability to access debt or equity markets if a sustained recovery is needed.

Negative Factors

Sharp revenue contraction

A 68.4% revenue decline is a large structural setback that impairs scale economics and customer relationships. Sustaining gross margins and fixed-cost coverage becomes difficult; regaining prior volumes could take multiple quarters and require strategic repositioning.

Extremely thin gross margin

A 0.15% gross margin signals severe cost or pricing pressure at the core of the business. Such a structural margin deficit undermines the company's ability to cover operating expenses and invest in product or distribution improvements without sustained margin recovery.

Negative operating returns

Negative ROE indicates the company is destroying shareholder capital rather than generating returns. Over the medium term this limits reinvestment capacity, weakens investor confidence, and forces management to prioritize profitability restoration over growth initiatives.

Vaxtex Cotfab Ltd Business Overview & Revenue Model

Company Description

Vaxtex Cotfab Limited manufactures textiles. The company offers denim fabrics, home textile, jeans, men's casual shirts, printed fabrics, and yarns. It offers shirting fabrics to various international brands, export houses, corporate buyers, domestic traders, wholesalers, and distributors. The company was incorporated in 2005 and is based in Ahmedabad, India.

How the Company Makes Money

Vaxtex Cotfab Ltd generates revenue primarily through the production and sale of cotton fabrics and finished garments. The company's revenue model relies on direct sales to wholesalers, retailers, and manufacturers who require high-quality textiles for their products. Key revenue streams include bulk orders from large apparel brands, custom fabric solutions for niche markets, and retail sales through online and physical stores. Additionally, VCL benefits from strategic partnerships with fashion designers and brands, which enhance its market reach and allow for co-branded collections. The company also invests in sustainable practices, attracting eco-conscious consumers and potentially qualifying for grants or incentives aimed at promoting environmentally friendly manufacturing.

Vaxtex Cotfab Ltd Financial Statement Overview

Summary

Financials are mixed: the income statement is weak with a sharp 68.4% revenue drop, extremely thin gross margin (0.15%), and negative EBIT margin (-11.51%), partially offset by improved cash generation (positive operating and free cash flow; OCF/net income 1.32) and a balance sheet with manageable leverage (debt-to-equity 0.61) despite negative ROE.

Income Statement

Vaxtex Cotfab Ltd has experienced significant revenue volatility over the years. The most recent year shows a drastic drop in revenue by 68.4% from the previous year. The gross profit margin is extremely low at 0.15%, and the company has a negative EBIT margin of -11.51%, indicating operational inefficiencies. Despite a positive net profit margin of 16.81%, which is driven by one-time events or non-operational items, the overall income statement points to financial instability and challenges in maintaining revenue growth.

Balance Sheet

The company's balance sheet displays a moderate level of leverage with a debt-to-equity ratio of 0.61, which is manageable but worth monitoring given the industry. The equity ratio stands at 37.83%, suggesting a decent level of asset financing through equity. However, return on equity is negative, indicating inefficiencies in generating returns on shareholders' investments. The balance sheet reflects a need for improved profitability to enhance financial stability.

Cash Flow

Vaxtex Cotfab Ltd has shown improvement in cash flows, with positive operating cash flow and free cash flow in the latest year. The operating cash flow to net income ratio is 1.32, indicating efficient conversion of profits into cash. The cash flow statement highlights a recovery in free cash flow from previous negative values, suggesting potential for improved cash management. However, past volatility and negative cash flows in earlier years remain a concern.

Breakdown	Mar 2025	Jun 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	52.53M	166.20M	756.22M	619.07M	261.54M
Gross Profit	78.00K	-52.45M	53.06M	77.76M	26.91M
EBITDA	6.28M	-86.16M	20.68M	33.85M	14.98M
Net Income	8.84M	-88.34M	11.32M	14.86M	1.78M
Balance Sheet
Total Assets	484.74M	488.72M	694.85M	239.88M	216.86M
Cash, Cash Equivalents and Short-Term Investments	11.84M	11.24M	11.21M	11.23M	1.14M
Total Debt	111.29M	115.17M	51.92M	74.53M	102.94M
Total Liabilities	301.33M	300.81M	460.02M	136.29M	128.12M
Stockholders Equity	183.40M	187.91M	234.82M	103.59M	88.74M
Cash Flow
Free Cash Flow	11.62M	-131.36M	-118.79M	18.16M	-6.90M
Operating Cash Flow	11.62M	-131.36M	-118.56M	21.73M	9.32M
Investing Cash Flow	-7.60M	-31.78M	3.37M	-10.63M	23.99M
Financing Cash Flow	-4.19M	162.43M	105.05M	-30.08M	-34.10M

Vaxtex Cotfab Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.72
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VCL, the sentiment is Neutral. The current price of 1.72 is below the 20-day moving average (MA) of 2.08, below the 50-day MA of 2.11, and above the 200-day MA of 1.37, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 41.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:VCL.

Vaxtex Cotfab Ltd 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%
VCL	62 Neutral	―	6.16	―	―	348.82%	―
EUROTEXIND	43 Neutral	₹111.74M	6.21	―	―	-53.77%	―
GANGOTRI	43 Neutral	₹20.22M	-29.95	―	―	―	―

Vaxtex Cotfab Ltd Corporate Events

Vaxtex Cotfab Plans Major Capital Expansion, Governance Changes Ahead of February EGM

Vaxtex Cotfab’s board has approved a major increase in its authorised share capital from ₹19 crore to ₹500 crore and plans to amend its Memorandum of Association accordingly, signalling preparations for substantial future equity issuance subject to shareholder approval. The board also cleared changes to the company’s main object clause and its name to better reflect its core business, sought higher borrowing powers and an expanded ₹500 crore limit for loans, investments, guarantees and securities, appointed Dhiraj Mishra as an additional executive director, and set the groundwork for an Extraordinary General Meeting on 27 February 2026 to seek shareholder approvals for these strategic shifts.

Vaxtex Cotfab Plans Major Capital Expansion and Strategic Overhaul

Vaxtex Cotfab Limited’s board has approved a significant expansion of its financial and corporate framework, proposing to increase its authorised share capital from ₹19 crore to ₹500 crore and raising its limits for investments, loans, guarantees and securities up to ₹500 crore, alongside higher borrowing powers, all subject to shareholder and regulatory approvals. The board also cleared changes to the company’s main object clause, name and other provisions of its Memorandum and Articles of Association, appointed Dhiraj Mishra as an additional executive director, and set an Extraordinary General Meeting for 27 February 2026 to seek shareholder consent, signalling an ambitious scale-up and strategic repositioning that could materially affect its capital structure, governance and future growth plans.

Vaxtex Cotfab Board Clears Promoter-to-Public Reclassification of Key Shareholders

Vaxtex Cotfab Limited has announced that its Board of Directors, at a meeting held on 24 December 2025, approved requests from certain existing shareholders—Mr. Khushant Gupta, Mr. Mithleshkumar Agrawal, Qmin Industries Limited and Vax Enterprises Private Limited—to reclassify their status from the promoter category to the public shareholder category, subject to approval by the National Stock Exchange of India Limited. The reclassification, once cleared by the exchange, will alter the company’s shareholding structure by reducing the promoter group and increasing the public float, a move that could have implications for corporate control, governance dynamics and the stock’s liquidity profile for investors.