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Loyal Textile Mills Ltd

NSE: LOYALTEX BSE: 514036

200

(0.50%)

Sun, 22 Mar 2026, 08:04 pm

Loyal Textile Mills Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (20.2x coverage).
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Cons

  • Dividends per share have fallen over the past 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Loyal Textile Mills's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Loyal Textile Mills's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Loyal Textile Mills is profitable, therefore cash runway is not a concern.
  • Loyal Textile Mills is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (33.8%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.3x debt.
  • Loyal Textile Mills'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 (391.6% vs 160.1% today).
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Cons

  • Loyal Textile Mills's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Interest payments on debt are not well covered by earnings (EBIT is 1x annual interest expense, ideally 3x coverage).
  • Loyal Textile Mills's level of debt (160.1%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • A.'s remuneration is about average for companies of similar size in India.
  • The tenure for the Loyal Textile Mills management team is about average.
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Cons

  • The average tenure for the Loyal Textile Mills board of directors is less than 3 years, this suggests a new board.

misc

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Pros

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    Cons

    • Loyal Textile Mills is not covered by any analysts.
    • Loyal Textile Mills has significant price volatility in the past 3 months.

    past

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    Pros

    • Loyal Textile Mills's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
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    Cons

    • Loyal Textile Mills's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Loyal Textile Mills used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
    • Loyal Textile Mills's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Loyal Textile Mills has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Loyal Textile Mills's 1-year earnings growth is negative, it can't be compared to the IN Luxury industry average.

    value

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    Pros

    • Loyal Textile Mills's share price is below the future cash flow value, and at a moderate discount (> 20%).
    • Loyal Textile Mills's share price is below the future cash flow value, and at a substantial discount (> 40%).
    • Loyal Textile Mills is good value based on earnings compared to the IN Luxury industry average.
    • Loyal Textile Mills is good value based on earnings compared to the India market.
    • BSE:514036 is up 39.3% outperforming the Luxury industry which returned 9.8% over the past month.
    • BSE:514036 is up 39.3% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Loyal Textile Mills is overvalued based on assets compared to the IN Luxury industry average.
    • 514036 underperformed the Luxury industry which returned -22.1% over the past year.
    • 514036 underperformed the Market in India which returned -14.5% over the past year.

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