Kitex Garments (KITEX)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹134.24 |
| Market Cap | ₹2,678.09 Cr |
| P/E Ratio | 447.47 |
| ROCE | 10.16% |
| ROE | -1.08% |
| Dividend Yield | 0.37% |
| Profit Growth | -57.16% |
| Debt/Equity | 0.97 |
| Sales Growth | -35.94% |
| Promoter Holding | 56.66% |
| 52-Week Range | ₹123 — ₹232.7 |
| Sector | Textiles & Apparels |
| Book Value | ₹52.63 |
Strengths
- Promoter holding of 56.66% aligns owner interests with minority shareholders.
- Book value of ₹52.72 provides some tangible asset support, though price is 3.20x book.
- ROCE of 10.16% is still positive, indicating some operating capital productivity.
- Latest quarterly sales of ₹182 Cr show the business still has meaningful scale.
Concerns
- Sales growth is -34.14% and latest quarterly net profit is -₹17 Cr, showing severe pressure.
- Piotroski F-Score of 3/9 and FairStock Score of 0/100 indicate risky financial health.
- Debt/equity of 0.98 is high for a company currently making losses.
- P/E of 91.81 with collapsing profits offers no valuation margin of safety.
AI Analysis
At ₹168.95, Kitex Garments is a business in trouble. In the latest quarter it earned only ₹182 Cr of sales and lost ₹17 Cr. Sales growth is down 34.14% and profit growth has collapsed by 122.89%. When I see a P/E of 91.81, I do not see value; I see a denominator that has evaporated. A fair business with a durable moat can command a high multiple, but garments manufacturing has no wide moat, and this price gives me no margin of safety. Book value is ₹52.72, so I am paying 3.20 times book for an ROE of just 8.49%. That is a poor return on assets I am asked to pay so much for. The balance sheet worries me even more: debt/equity is 0.98, and with the company losing money, leverage becomes dangerous. The Piotroski F-Score of 3/9 and the 0/100 risk score are red flags, not a Graham checklist. There is little to cheer: promoter holding of 56.66% at least keeps control with people who own the majority, and ROCE of 10.16% is positive; but the dividend yield is only 0.28%, so shareholders are not paid to wait. The 52-week range of ₹132.01-₹232.70 shows the stock has already been beaten down, but a falling price does not automatically mean it is cheap. I need evidence of a turnaround—positive profits, lower debt, and renewed sales growth—before I deploy capital. This is a possible turnaround, not an investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer