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

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Sutlej Textiles & Industries Ltd.

(NSE:SUTLEJTEX)

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Rating:48Neutral

Price Target:INR 35.00▼(-4.37% Downside)

Action:reiterated

Date:09/06/26

The score is held down primarily by weak financial performance (multi-year losses, contracting revenue, and deteriorating recent free cash flow) and an unattractive valuation signal from a negative P/E. These negatives are partly offset by constructive technical momentum, with the stock trading above key moving averages and positive MACD/RSI readings.

Positive Factors

Profitability recoveryThe return to positive gross profit and EBITDA shows some recovery in operating economics after the FY2024 trough. Although operating profit remains negative, this improvement provides a base for potential stabilization if revenue and cost performance continue to improve.

Negative Factors

Contracting revenue and lossesMulti-year revenue contraction combined with continuing net losses indicates that the core business has not yet regained sustainable demand or pricing power. Persistent operating losses weaken earnings visibility and make it harder to fund investment, reduce debt, or build shareholder returns.

Sutlej Textiles & Industries Ltd. (SUTLEJTEX) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 5.71B
Dividend Yield: ―
Average Volume (3M): 2,494
Price to Earnings (P/E): -11.0
Beta (1Y): 1.11
Revenue Growth: 1.71%
EPS Growth: 36.44%
Country: India
Employees: 12,712
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Sutlej Textiles & Industries Ltd. Business Overview & Revenue Model

Company Description

Sutlej Textiles and Industries Limited, based in Mumbai, India, is a prominent manufacturer and seller of yarns and home textile products. Established in 1934, the company's activities are organized into two primary divisions: Yarn and Home Textiles....

Sutlej Textiles & Industries Ltd. Financial Statement Overview

Summary

Income statement trends are weak: multiple years of net losses and negative operating profit with contracting revenue. Balance sheet shows moderate-to-high leverage versus the current earnings profile (debt-to-equity ~1.14) and negative ROE for three years. Cash flow has deteriorated recently, with FY2026 turning meaningfully negative free cash flow, reducing flexibility.

Income Statement

34Negative

Balance Sheet

46Neutral

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	26.68B	25.75B	26.25B	26.53B	30.27B	30.76B
Gross Profit	1.36B	2.87B	759.30M	-248.40M	3.19B	14.22B
EBITDA	857.50M	437.10M	662.80M	-197.10M	2.51B	4.12B
Net Income	-553.60M	-863.10M	-684.00M	-1.36B	372.80M	1.50B
Balance Sheet
Total Assets	0	20.50B	20.51B	21.09B	24.32B	24.25B
Cash, Cash Equivalents and Short-Term Investments	153.10M	153.10M	191.00M	210.50M	239.20M	134.70M
Total Debt	0	9.31B	8.79B	8.46B	9.53B	9.43B
Total Liabilities	-8.15B	12.35B	11.56B	11.48B	13.23B	13.25B
Stockholders Equity	8.15B	8.15B	8.95B	9.61B	11.09B	11.00B
Cash Flow
Free Cash Flow	801.90M	-523.50M	6.30M	1.66B	535.30M	95.00M
Operating Cash Flow	1.09B	123.00M	660.30M	2.22B	1.96B	950.20M
Investing Cash Flow	-217.60M	-644.90M	-250.30M	-382.50M	-1.18B	-756.00M
Financing Cash Flow	-886.80M	471.80M	-319.60M	-1.90B	-805.80M	-184.20M

Sutlej Textiles & Industries Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price36.60

Price Trends

50DMA36.88Negative

100DMA37.43Negative

200DMA35.24Positive

Market Momentum

MACD-0.39Negative

RSI56.16Neutral

STOCH43.54Neutral

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 36.60 is above the 20-day moving average (MA) of 35.07, below the 50-day MA of 36.88, and above the 200-day MA of 35.24, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 43.54 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SUTLEJTEX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ARVIND	66Neutral	INR 136.02B	29.08	―	0.89%	19.08%	10.88%
IN:VTL	66Neutral	INR 150.96B	14.54	―	0.96%	7.44%	19.19%
IN:TRIDENT	62Neutral	INR 119.40B	25.29	―	2.10%	-4.44%	6.93%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RSWM	51Neutral	INR 9.44B	11.71	―	―	-1.19%	910.54%
IN:NAHARSPING	50Neutral	INR 9.31B	6.15	―	0.39%	5.89%	339.07%
IN:SUTLEJTEX	48Neutral	INR 5.85B	-10.98	―	―	1.71%	36.44%

* General Sector Average

Performance Comparison

IN:SUTLEJTEX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SUTLEJTEX	Sutlej Textiles & Industries Ltd.	36.60	0.98	2.75%
IN:ARVIND	Arvind Limited	506.40	172.57	51.70%
IN:NAHARSPING	Nahar Spinning Mills Ltd	255.10	51.89	25.54%
IN:RSWM	RSWM Ltd	203.45	40.90	25.16%
IN:TRIDENT	Trident Limited	23.77	-3.88	-14.02%
IN:VTL	Vardhman Textiles Limited	519.95	71.45	15.93%

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: Sep 06, 2026

Sutlej Textiles & Industries Ltd. AI Stock Analysis