Kakatiya Textiles Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹9.60₹0.00 (0.00%)

DalalBaazaar Score

32 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, though profits are falling even as sales grow. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Kakatiya Textiles Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kakatiya Textiles Limited manufactures and sells cotton yarn products in India. The company was incorporated in 1981 and is based in Tanuku, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees40

Annual revenue₹31 Cr

How does it make money?

Turns over ₹31 Cr a year. Of every ₹100 of sales, about ₹-16 reaches shareholders as profit, with ₹-19 left at the operating level before interest, tax and depreciation. Each of its 40 employees supports ₹76.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹76.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -21.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +399% while net margin moved -279% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+399%

Margin effect-279%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

36/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

—

PEG

—

Red Flags

7 items require attention · 5 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Debt has risen sharplyFinancial
Total debt is up 167% over 3 years, from ₹14 Cr to ₹36 Cr.
🔴The company is lossmakingFinancial
Net profit of -₹5 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 41.7 points, from 22.9% to -18.8%.
🔴Receivables growing faster than salesFinancial
Receivables up 804% against revenue up 399% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹24 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.76 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 22.9% to -18.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 804% against revenue up 399%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 53% a year✓ 70.9% CAGR
Latest reported year was 68.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -21%✓ -18.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹24 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 4 neutral · 6 weak

Market Cap

₹6 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-8.27

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-21.0%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

68.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-476.1%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹24 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-2.1%

Weak

Thin margins leave little room for error

Net Margin

-12.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.76

Tight

Tight short-term liquidity

Beta (vs Nifty)

-2.70

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

8.4 / 8.3

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

99.5

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹0 Cr	₹31 Cr	₹31 Cr	+70.9%
EBITDA	₹1 Cr	-₹1 Cr	₹2 Cr	-₹6 Cr	—
EBITDA Margin	22.9%	-7147.0%	6.1%	-18.8%	—
PAT (Net Profit)	₹1 Cr	-₹1 Cr	₹1 Cr	-₹5 Cr	—
EPS	₹0.97	₹-2.55	₹2.31	₹-8.68	—
ROCE	24.3%	-21.1%	16.8%	-21.0%	—
Total Debt	₹14 Cr	₹16 Cr	₹15 Cr	₹36 Cr	+38.7%
Free Cash Flow	₹5 Cr	-₹2 Cr	₹1 Cr	-₹24 Cr	—

🟢 Revenue has grown at 70.9% a year over 3 years.

🔴 EBITDA has turned negative, from ₹1 Cr to -₹6 Cr.

🔴 EBITDA Margin has fallen from 22.9% to -18.8% over 3 years (-41.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹5 Cr.

🔴 EPS has turned negative, from ₹0.97 to ₹-8.68.

🔴 ROCE has fallen from 24.3% to -21.0% over 3 years (-45.3 pts).

🔴 Total Debt has grown at 38.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹24 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹41 Cr

Total Liabilities

₹59 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.0%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

Kakatiya Textiles reports net loss of ₹502 lakh in FY26

scanx.trade, 30 May

Kakatiya Textiles board to meet on May 30 to consider Q4 results

scanx.trade, 20 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

PM Modi rolls out Rs 9,400 crore Telangana package, spotlights textile revolution

The Economic Times, 10 May

Centre greenlights Telangana's Kakatiya mega textile park

The Times of India, 18 Mar

Telangana: Kitex group to invest Rs 1,000 crore in Kakatiya Mega Textile Park

India Today, 09 Jul

Kitex Garments announces Rs.1,000 crore investment in Telangana

Frontline Magazine, 10 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Kakatiya Textiles Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 5 high-severity red flags sit above this conclusion and should be read first.

1 of 3 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑