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Kitex Garments Ltd

NSE: KITEX BSE: 521248

142.25

(-6.73%)

Sun, 05 Apr 2026, 04:58 pm

Kitex Garments Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (11.9x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Kitex Garments's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Kitex Garments's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Kitex Garments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kitex Garments is profitable, therefore cash runway is not a concern.
  • Kitex Garments is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (32.6%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 6.2x debt.
  • Kitex Garments's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (64.9% vs 15.3% today).
  • Interest payments on debt are well covered by earnings (EBIT is 29.8x coverage).
  • Kitex Garments's level of debt (15.3%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Kitex Garments board of directors is about average.
  • Sabu's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Sabu's remuneration is higher than average for companies of similar size in India.
  • The average tenure for the Kitex Garments management team is less than 2 years, this suggests a new team.

misc

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Pros

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    Cons

    • Kitex Garments is not covered by any analysts.

    past

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    Pros

    • Kitex Garments's 1-year earnings growth exceeds its 5-year average (44.1% vs -5.4%)
    • Kitex Garments used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
    • Kitex Garments's earnings growth has exceeded the IN Luxury industry average in the past year (44.1% vs 8.3%).
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    Cons

    • Kitex Garments's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
    • Kitex Garments's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Kitex Garments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • Kitex Garments is good value based on earnings compared to the IN Luxury industry average.
    • Kitex Garments is good value based on earnings compared to the India market.
    • KITEX outperformed the Luxury industry which returned -22.1% over the past year.
    • KITEX outperformed the Market in India which returned -14.5% over the past year.
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    Cons

    • Kitex Garments's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Kitex Garments's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Kitex Garments is overvalued based on assets compared to the IN Luxury industry average.
    • NSEI:KITEX is up 4.4% underperforming the Luxury industry which returned 9.8% over the past month.
    • NSEI:KITEX is up 4.4% underperforming the market in India which returned 8% over the past month.

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    Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800