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Sanathan Textiles Limited
(SANATHAN)
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Rating:50Neutral
Price Target:
₹527.00
▲(23.42% Upside)
Action:Reiterated
Date:08/22/26
The score is primarily constrained by weak cash-flow quality (deeply negative free cash flow and limited operating cash flow coverage of debt) despite strong 2026 revenue growth and improving profitability. Technicals are mixed/neutral, while valuation is a headwind due to the high P/E and no dividend support.
Positive Factors
Strong Revenue Growth
The sharp 2026 revenue increase indicates substantial business expansion and stronger market activity. If this growth is sustained, it can improve operating leverage, support reinvestment, and provide a broader revenue base from which future profitability can develop.
Negative Factors
Deeply Negative Free Cash Flow
Deeply negative and worsening free cash flow shows that reported growth and profits are not yet translating into cash after investment needs. Persistent cash consumption can increase reliance on external funding and limit the company’s ability to finance expansion internally over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The sharp 2026 revenue increase indicates substantial business expansion and stronger market activity. If this growth is sustained, it can improve operating leverage, support reinvestment, and provide a broader revenue base from which future profitability can develop.
Read all positive factors
Sanathan Textiles Limited (SANATHAN) vs. iShares MSCI India ETF (INDA)
Market Cap
₹42.53B
Dividend YieldN/A
Average Volume (3M)16.65K
Price to Earnings (P/E)73.5
Beta (1Y)0.68
Revenue Growth48.53%
EPS Growth-59.72%
CountryIN
Employees1,843
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)7.19
Shares Outstanding84,404,060
10 Day Avg. Volume14,579
30 Day Avg. Volume16,653
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)1.62
Price to Sales (P/S)0.80
P/FCF Ratio-7.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹675.00Price Target Upside58.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)25.18
Revenue Forecast (FY)₹57.16B
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 internatio...
How the Company Makes Money
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Sanathan Textiles Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.01B | 38.11B | 29.34B | 28.90B | 32.59B | 31.21B |
| Gross Profit | 11.16B | 9.29B | 3.68B | 3.21B | 4.04B | 6.91B |
| EBITDA | 3.40B | 3.04B | 2.80B | 2.49B | 2.75B | 5.51B |
| Net Income | 607.40M | 773.50M | 1.60B | 1.34B | 1.53B | 3.55B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 47.14B | 35.28B | 22.04B | 19.07B | 17.96B |
| Cash, Cash Equivalents and Short-Term Investments | 1.69B | 1.69B | 1.38B | 2.09B | 1.54B | 1.34B |
| Total Debt | 0.00 | 15.12B | 10.84B | 3.80B | 2.81B | 3.78B |
| Total Liabilities | -18.72B | 28.42B | 17.20B | 9.29B | 7.67B | 8.10B |
| Stockholders Equity | 18.72B | 18.72B | 18.08B | 12.75B | 11.40B | 9.87B |
Cash Flow | ||||||
| Free Cash Flow | -3.40B | -3.86B | -135.36M | -440.30M | 1.49B | 2.52B |
| Operating Cash Flow | 420.30M | 2.28B | 3.83B | 1.72B | 3.62B | 2.95B |
| Investing Cash Flow | -3.63B | -6.37B | -4.75B | -2.49B | -2.35B | -1.14B |
| Financing Cash Flow | 3.04B | 3.88B | 2.65B | 975.80M | -1.26B | -1.99B |
Sanathan Textiles Limited Technical Analysis
Positive
427.00
Price Trends
475.14
Positive
452.94
Positive
438.04
Positive
Market Momentum
15.07
Negative
64.61
Neutral
59.61
Neutral
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 427 is below the 20-day moving average (MA) of 488.81, below the 50-day MA of 475.14, and below the 200-day MA of 438.04, indicating a bullish trend. The MACD of 15.07 indicates Negative momentum. The RSI at 64.61 is Neutral, neither overbought nor oversold. The STOCH value of 59.61 is Neutral, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | ₹2.16B | 22.24 | ― | 0.38% | -0.02% | -26.96% | |
57 Neutral | ₹7.27B | 10.42 | ― | ― | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹12.47B | 82.16 | ― | 0.07% | ― | ― | |
52 Neutral | ₹4.20B | 30.77 | ― | ― | ― | ― | |
50 Neutral | ₹42.53B | 73.48 | ― | ― | 48.53% | -59.72% | |
46 Neutral | ₹5.90B | 46.37 | ― | 3.64% | 71.20% | ― |
* General Sector Average
IN:SANATHAN
Sanathan Textiles Limited
527.00
27.75
5.56%
IN:ABCOTS
AB Cotspin India Ltd.
195.80
-244.45
-55.53%
IN:GLOSTERLTD
Gloster Ltd.
548.90
-103.52
-15.87%
IN:PASHUPATI
Pashupati Cotspin Ltd.
74.03
3.52
5.00%
IN:SHIVATEX
Shiva Texyarn Limited
162.45
-20.60
-11.25%
IN:BORANA
Borana Weaves Limited
269.70
40.00
17.41%
Sanathan Textiles Limited Corporate Events
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 ...
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 co...
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 Listin...
Sanathan Textiles Files SEBI Compliance Certificate, Reports Stable Share Activity
Jul 6, 2026
Sanathan Textiles Limited has submitted to the NSE and BSE a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended June 30, 2026. The certificate, issued by its registrar ...
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.