Kitex Garments Ltd.
ISIN: INE602G01020 • Market Cap: ₹2,477 Cr
The 5-Pillar Quality Audit for Kitex Garments Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (0.7%), Return on Capital Employed (8.9%), and equity compounding (13.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.05 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (4.1%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of — vs PEG of — and Dividend Yield of 0.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 56.7%, backed by 1.3% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Small Cap)
Established player in the Textiles sector with an overall fundamental quality score of 45/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 8.9%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Elevated Financial Gearing (D/E: 1.05)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Topline Stagnation (3Y Sales CAGR: 4.1%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking KITEX against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 45/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Textiles Sector Peer Comparison
Compare KITEX directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Kitex Garments Ltd. (KITEX)Current | 45/100 | ₹2,477 Cr | — | 8.9% | 1.05 | — |
| Page Industries Ltd. (PAGEIND) | 77/100 | ₹39,485 Cr | 52.24 | 63.8% | 0.01 | View |
| K.P.R. Mill Ltd. (KPRMILL) | 67/100 | ₹38,367 Cr | 42.05 | 20.2% | 0.10 | View |
| Vardhman Textiles Ltd. (VTL) | 63/100 | ₹17,217 Cr | 20.30 | 10.8% | 0.13 | View |
| Welspun Living Ltd. (WELSPUNLIV) | 67/100 | ₹17,124 Cr | 61.68 | 15.4% | 0.51 | View |
| Arvind Ltd. (ARVIND) | 64/100 | ₹14,096 Cr | 34.04 | 15.5% | 0.36 | View |
Frequently Asked Questions: Kitex Garments Ltd.
Q:What is the 5-Pillar Fundamental Score for Kitex Garments Ltd. (KITEX)?
Kitex Garments Ltd. has a RupeeTools Fundamental Score of 45/100, placing it in the 'Caution / Risky' category. Its pillar scores are: Profitability (51/100), Financial Health (52/100), Growth (40/100), Valuation (15/100), and Ownership Quality (60/100).
Q:Is KITEX fundamentally strong for long-term investment?
KITEX currently holds a moderate quality rating of 45/100. While it operates in the Textiles sector, investors should monitor its debt health before initiating long-term positions.
Q:Does KITEX pass the Coffee Can Investing filter?
No. KITEX does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does KITEX compare against other Textiles peers?
Within India's Textiles sector, KITEX trades at a P/E of — and generates an ROCE of 8.9%. Compare its 5-Pillar score of 45/100 against top sector peers like Page Industries Ltd. (77/100), K.P.R. Mill Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.