GHCL Textiles Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

GHCL Textiles Ltd trades at ₹114, in a confirmed uptrend and 12 weeks into that stage. That is +26.5% against its own 200-day average. It sits at 95% of a 52-week range of ₹69 to ₹116. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 31 straight weeks.

Today the stock is in a confirmed uptrend — week 12 of stage 2, confirmed. At ₹114 it trades +26.5% versus its 200-day average and sits at 95% of its 52-week range (₹69–₹116).

Against the market, two honest reads. Cumulative: over the last 3.1 years the stock moved +83% while the NIFTY 500 moved +44% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 31 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

GHCL Textiles Ltd trades at 11.3× P/E, about the cheapest it has ever traded. Its long-run median P/E is 15.2×, measured across 2.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 11.3× is about the cheapest it has ever traded, against a long-run median of 15.2× measured over 2.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +25.6% against a +30.8% price move — the price outran earnings, pushing the multiple UP its own range.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

GHCL Textiles Ltd reads as mixed on its fundamental arc. Mixed — the growth curves are steadily positive, but ROCE at 6.0% is below the 15% bar this page requires to call it Consistent. The read is built from 8 quarters across 3 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

67.3/100 — rank 1 of 4 in Textiles - General · 84% evidence confidence

GHCL Textiles Ltd scores 67.3 out of 100 against the 4 companies it is compared with in Textiles - General, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 29.9 + 8.3 + 9.3 + 19.8 = 67.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

GHCL Textiles Ltd reported ₹409 Cr of revenue in the Jun 26 quarter, +52.6% year on year. That is the 4th straight quarter of year-on-year growth. The last full year, FY26, came in at ₹1,319 Cr. The last four reported quarters add to ₹1,460 Cr.

FY26 revenue came in at ₹1,319 Cr (+13.6% on the year). The latest quarter (Jun 26) printed ₹409 Cr, +52.6% year on year — the 4th consecutive quarter of year-over-year growth.

Acceleration check: trailing-twelve-month revenue grew +27.8% over the last 4 quarters against +16.4%/yr over the last 8 — accelerating; TTM profit +65.5% vs +73.2%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

GHCL Textiles Ltd's operating margin is 17.0% in the Jun 26 quarter, +6.0 percentage points against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 8.0% to 11.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 17.0%, +6.0 pp against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 8.0%–11.0%.

Why the margin moved: operating margin went +5.7 pp year on year while gross margin went +1.9 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

GHCL Textiles Ltd earned ₹39.0 Cr of net profit in the Jun 26 quarter, +178.6% year on year. It is the 3rd consecutive quarter of growth. Full-year FY26 profit was ₹70.0 Cr. That is 9.5% of the quarter's revenue. The same quarter a year earlier earned ₹14.0 Cr.

Jun 26 profit was ₹39.0 Cr, +178.6% year on year — the 3rd consecutive quarter of growth. On the full year, FY26 printed ₹70.0 Cr (+25.0%).

Why profit moved: revenue contributed +52.6% and the margin +6.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +74.8% vs revenue +28.5%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 149% of GHCL Textiles Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹5.0 Cr of operating cash against ₹70.0 Cr of profit. After ₹70.0 Cr of capital spending, ₹−65.0 Cr was left as free cash.

FY26: operating cash of ₹5.0 Cr against reported profit of ₹70.0 Cr, leaving free cash of ₹−65.0 Cr after ₹70.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 149% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 149%: the cash cycle held roughly steady between FY24 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 8.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

GHCL Textiles Ltd's cash conversion cycle runs 194 days in FY26, down from 202 days in FY24. Capital spending ran ₹1,348 Cr over the last 3 years. At FY26 sales of ₹1,319 Cr each day of that cycle holds about ₹3.6 Cr, so roughly ₹701 Cr sits inside the business at any moment.

FY26: debtors at 47 days, inventory at 172 days — roughly 5.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 194 days, tighter than FY24's 202.

The full loop: cash goes out to suppliers and production on day 0; stock waits 172 days to sell; customers pay about 47 days after that; and suppliers themselves are paid at 26 days — netting out to the 194-day cycle.

In money terms: at FY26 sales of ₹1,319 Cr, each day of the cycle holds about ₹3.6 Cr — so the 194-day loop keeps roughly ₹701 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,348 Cr over the last 3 fiscal years against ₹156 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹2.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

GHCL Textiles Ltd earns a ROCE of 6% in FY26. That is up from a trough of 5% in FY25. Return on invested capital clears the cost of that capital by −8.0 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 5.3% net margin on 0.71× asset turns.

FY26 ROCE is 6%, recovered from a FY25 trough of 5% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 5.3% net margin × 0.71× asset turns × 1.25× balance-sheet leverage ≈ 4.7% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 4.0% − 12.0% = a −8.0 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

GHCL Textiles Ltd carries total debt of ₹134 Cr against shareholder equity of ₹1,502 Cr as of Mar 26, a debt-to-equity of 0.09 — effectively unlevered. On the annual view that ratio went from 0.05 in FY24 to 0.09 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹134 Cr against shareholder equity of ₹1,502 Cr — a debt-to-equity of 0.09. On the annual view, debt-to-equity went from 0.05 (FY24) to 0.09 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions cut 5.3 points of GHCL Textiles Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 1.1% of the company. Foreign institutions moved −2.5 points over the same window, to 13.2%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −5.3 points over 8 quarters to 1.1%; Foreign institutions: −2.5 points over 8 quarters to 13.2%; Promoters: +0.0 points over 8 quarters to 19.2%. Note the structure: promoters hold under 20% — this is a widely-held company where institutions, not a family, set the direction.

🚨 Why the register moved: domestic institutions drove it (−5.3 points), alongside foreign institutions (−2.5 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

GHCL Textiles Ltd: the Z-score reads 2.48. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits in the grey band between the two. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 2.48 sits in the grey band — neither clearly safe nor clearly distressed.

The safety line in one sentence: the Z-score reads 2.48.

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