Sanathan 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.

Sanathan Textiles Ltd trades at ₹475, building a base and 6 weeks into that stage. That is +8.3% against its own 200-day average. It sits at 70% of a 52-week range of ₹378 to ₹516. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 3 straight weeks.

Today the stock is building a base — week 6 of stage 1, confirmed. At ₹475 it trades +8.3% versus its 200-day average and sits at 70% of its 52-week range (₹378–₹516).

Against the market, two honest reads. Cumulative: over the last 1.6 years the stock moved +22% while the NIFTY 500 moved +5% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 3 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.

Sanathan Textiles Ltd trades at 57.6× P/E, about the priciest it has ever traded. Its long-run median P/E is 26.3×, measured across 1.6 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 57.6× is about the priciest it has ever traded, against a long-run median of 26.3× measured over 1.6 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 −51.8% against a −5.9% price move — the price outran earnings, pushing the multiple UP its own range.

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

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).

Sanathan Textiles Ltd reads as mixed on its fundamental arc. Mixed — revenue growth is rising at +59.7% (single-quarter readings) while profit growth is falling at −50.0% (single-quarter readings) — the curves disagree, so the per-curve reads carry the story. The read is built from 9 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.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

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

33.3/100 — rank 10 of 13 in Textiles - Spinning · 73% evidence confidence

Sanathan Textiles Ltd scores 33.3 out of 100 against the 13 companies it is compared with in Textiles - Spinning, ranking 10. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 11.9 + 5.6 + 8.8 + 7 = 33.3. 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.

Sanathan Textiles Ltd reported ₹1,169 Cr of revenue in the Mar 26 quarter, +59.7% year on year. That is the 3rd straight quarter of year-on-year growth. Over 4 years it has compounded at 4.6% a year. The last full year, FY26, came in at ₹3,811 Cr. The last four reported quarters add to ₹3,811 Cr.

FY26 revenue came in at ₹3,811 Cr (+27.1% on the year), capping 4 years at 4.6% compound. The latest quarter (Mar 26) printed ₹1,169 Cr, +59.7% year on year — the 3rd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +27.6% growth against the decade's 4.6% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +27.1% over the last 4 quarters against +12.9%/yr over the last 8 — accelerating; TTM profit −52.2% vs −25.8%/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.

Sanathan Textiles Ltd's operating margin is 8.0% in the Mar 26 quarter, −1.0 percentage points against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 8.0% to 17.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 8.0%, −1.0 pp against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 8.0%–17.0%.

🚨 Why the margin moved: operating margin went −1.3 pp year on year while gross margin went −0.5 pp — the loss 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.

Sanathan Textiles Ltd earned ₹22.0 Cr of net profit in the Mar 26 quarter, −50.0% year on year. Full-year FY26 profit was ₹77.0 Cr. The 4-year compound rate is −31.8%. That is 1.9% of the quarter's revenue. The same quarter a year earlier earned ₹44.0 Cr. 1 of the last 12 reported quarters were loss-making.

Mar 26 profit was ₹22.0 Cr, −50.0% year on year. On the full year, FY26 printed ₹77.0 Cr (−51.9%), and the 4-year compound rate is −31.8%.

🚨 Why profit moved: revenue contributed +59.7% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit −56.0% vs revenue +27.6%. Profit is growing slower than sales — costs are eating the growth before it reaches 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 242% of Sanathan Textiles Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹322 Cr of operating cash against ₹77.0 Cr of profit. After ₹643 Cr of capital spending, ₹−321 Cr was left as free cash.

FY26: operating cash of ₹322 Cr against reported profit of ₹77.0 Cr, leaving free cash of ₹−321 Cr after ₹643 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 242% 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 242%: the cash cycle tightened 65 days between FY22 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 12.5× 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).

Sanathan Textiles Ltd's cash conversion cycle runs −25 days in FY26, down from 40 days in FY22. Capital spending ran ₹2,283 Cr over the last 3 years. At FY26 sales of ₹3,811 Cr each day of that cycle holds about ₹10.4 Cr, so roughly ₹−261 Cr sits inside the business at any moment.

FY26: debtors at 21 days, inventory at 104 days — roughly 3.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −25 days, tighter than FY22's 40.

The full loop: cash goes out to suppliers and production on day 0; stock waits 104 days to sell; customers pay about 21 days after that; and suppliers themselves are paid at 150 days — netting out to the −25-day cycle.

In money terms: at FY26 sales of ₹3,811 Cr, each day of the cycle holds about ₹10.4 Cr — so the −25-day loop keeps roughly ₹−261 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹2,283 Cr over the last 3 fiscal years against ₹183 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹252 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.

Sanathan Textiles Ltd earns a ROCE of 7% in FY26. 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 2.0% net margin on 0.81× asset turns.

FY26 ROCE is 7%.

🚨 Why the return is what it is — the wiring (FY26): 2.0% net margin × 0.81× asset turns × 2.51× balance-sheet leverage ≈ 4.1% on equity. Margin does its share; leverage is a meaningful part of the equation.

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.

Sanathan Textiles Ltd carries total debt of ₹1,512 Cr against shareholder equity of ₹1,872 Cr as of Mar 26, a debt-to-equity of 0.81. On the annual view that ratio went from 0.38 in FY22 to 0.81 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹1,512 Cr against shareholder equity of ₹1,872 Cr — a debt-to-equity of 0.81. On the annual view, debt-to-equity went from 0.38 (FY22) to 0.81 (FY26). Read the returns on this page with that leverage in mind.

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 added 3.8 points of Sanathan Textiles Ltd over 6 quarters, the biggest move on the register. That takes domestic institutions to 12.7% of the company. Foreign institutions moved −2.3 points over the same window, to 1.5%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +3.8 points over 6 quarters to 12.7%; Foreign institutions: −2.3 points over 6 quarters to 1.5%; Promoters: +0.0 points over 6 quarters to 78.6%.

Why the register moved: rotation — foreign institutions −2.3 points against domestic institutions +3.8 points over 6 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

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.

Sanathan Textiles Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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