Sanathan Textiles Limited (SANATHAN) AI Stock Analysis

Sanathan Textiles Limited

(NSE:SANATHAN)

Select Model

Rating:62Neutral

Price Target:INR 526.00▲(1.53% Upside)

Action:reiterated

Date:08/24/26

The overall score reflects improving profitability and a manageable balance sheet as the main strengths, supported by a constructive medium- to long-term price trend, offset by weak cash flows and a rich valuation relative to earnings.

Positive Factors

Strong Revenue GrowthThe sharp 2026 revenue step-up indicates substantially stronger business activity and market reach. If this higher sales base is sustained, it can improve operating leverage, support investment in capacity, and provide a broader foundation for future earnings growth.

Negative Factors

Deeply Negative Free Cash FlowDeeply negative and worsening free cash flow means reported growth is requiring substantial cash investment rather than internally funding the business. Persistently weak conversion can constrain reinvestment flexibility, increase dependence on external financing, and weaken financial resilience.

Sanathan Textiles Limited (SANATHAN) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 41.89B
Dividend Yield: ―
Average Volume (3M): 13.71K
Price to Earnings (P/E): 69.0
Beta (1Y): 0.80
Revenue Growth: 48.53%
EPS Growth: -59.72%
Country: India
Employees: 1,843
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Sanathan Textiles Limited Business Overview & Revenue Model

Company Description

Sanathan Textiles Limited, operating through its subsidiaries, is a leading entity specializing in the global production and distribution of various yarn types. Established in Mumbai, India, in 2005, the company serves both domestic and international...

How the Company Makes Money

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Sanathan Textiles Limited Financial Statement Overview

Summary

Profitability and margins have improved meaningfully and the balance sheet shows moderate leverage, but cash generation and free cash flow remain weak, limiting overall financial strength.

Income Statement

78Positive

Balance Sheet

72Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	33.10B	29.34B	38.11B	28.90B	32.59B	31.21B
Gross Profit	4.43B	3.68B	9.29B	3.21B	4.04B	6.91B
EBITDA	2.75B	2.80B	3.04B	2.49B	2.75B	5.51B
Net Income	994.30M	1.60B	773.50M	1.34B	1.53B	3.55B
Balance Sheet
Total Assets	0	35.28B	47.14B	22.04B	19.07B	17.96B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.38B	1.69B	2.09B	1.54B	1.34B
Total Debt	0	10.84B	15.12B	3.80B	2.81B	3.78B
Total Liabilities	-18.49B	17.20B	28.42B	9.29B	7.67B	8.10B
Stockholders Equity	18.49B	18.08B	18.72B	12.75B	11.40B	9.87B
Cash Flow
Free Cash Flow	-8.63B	-135.36M	-3.86B	-440.30M	1.49B	2.52B
Operating Cash Flow	2.42B	3.83B	2.28B	1.72B	3.62B	2.95B
Investing Cash Flow	-10.56B	-4.75B	-6.37B	-2.49B	-2.35B	-1.14B
Financing Cash Flow	7.97B	2.65B	3.88B	975.80M	-1.26B	-1.99B

Sanathan Textiles Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price518.05

Price Trends

50DMA489.55Positive

100DMA471.75Positive

200DMA445.00Positive

Market Momentum

MACD0.29Positive

RSI45.63Neutral

STOCH19.07Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SANATHAN, the sentiment is Positive. The current price of 518.05 is above the 20-day moving average (MA) of 516.84, above the 50-day MA of 489.55, and above the 200-day MA of 445.00, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 19.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SANATHAN.

Sanathan Textiles Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SANATHAN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:BORANA	70Outperform	INR 5.51B	7.94	―	―	―	―
IN:SHIVATEX	69Neutral	INR 2.30B	22.96	―	0.35%	-0.02%	-26.96%
IN:SANATHAN	62Neutral	INR 41.85B	69.02	―	―	48.53%	-59.72%
IN:PASHUPATI	57Neutral	INR 21.25B	149.39	―	0.04%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ABCOTS	42Neutral	INR 3.61B	25.48	―	―	―	―
IN:GLOSTERLTD	38Underperform	INR 5.69B	43.23	―	3.85%	71.20%	―

* General Sector Average

Performance Comparison

IN:SANATHAN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SANATHAN	Sanathan Textiles Limited	517.80	39.20	8.19%
IN:ABCOTS	AB Cotspin India Ltd.	161.75	-259.10	-61.57%
IN:GLOSTERLTD	Gloster Ltd.	512.45	-129.95	-20.23%
IN:PASHUPATI	Pashupati Cotspin Ltd.	141.62	60.18	73.89%
IN:SHIVATEX	Shiva Texyarn Limited	163.75	-15.81	-8.81%
IN:BORANA	Borana Weaves Limited	217.60	-14.00	-6.04%

Sanathan Textiles Limited Corporate Events

Sanathan Textiles Seeks Shareholder Nod Via E-Voting for Independent Directors

Oct 21, 2026

Sanathan Textiles Limited has initiated a postal ballot process conducted entirely through remote e-voting to seek shareholder approval for the re-appointment of three independent directors. The company has published the postal ballot notice in Engli...

Sanathan Textiles Doubles Technical Textiles Capacity at Silvassa

Aug 20, 2026

Sanathan Textiles Limited has started commercial production from its expanded technical textiles yarn manufacturing capacity at its Silvassa facility. The move doubles the company’s technical textiles yarn capacity from 9,000 MTPA to 18,000 MTP...

Sanathan Textiles Sets September 11 Virtual AGM, Publishes E-Voting Details

Aug 19, 2026

Sanathan Textiles Limited has announced that its 21st Annual General Meeting will be held on September 11, 2026, via video conference and other audio-visual means, reflecting continued reliance on virtual formats for shareholder engagement. The compa...

Sanathan Textiles Publishes Q1 FY2026 Results Extracts in Newspapers

Aug 4, 2026

Sanathan Textiles Limited has published newspaper advertisements in Active Times and Lokmitra detailing extracts of its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The move is made under SEBI Listing R...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 22, 2026

Sanathan Textiles Limited AI Stock Analysis