Announcement
Announcement Under Regulation 30 Of SEBI (LODR) Regulations, 2015 22 Sep - RTA dispatched notices to physical shareholders to update PAN, KYC and nomination details.
Source: Bse
Kitex Garments Limited (KITEX)
Micro CapTextiles stocks · Micro cap · NSE
Kitex Garments Limited, established in 1992, is the world's second-largest infant apparel manufacturer. The company is vertically integrated from farm to finish, known for its high manufacturing efficiency and sustainable practices. It is currently undergoing a merger and significant capacity expansion in Telangana.
Data qualityFresh enough for analysisQuote updated 19 Oct, 03:31 pm ISTDetails
Quote19 Oct, 03:31 pm IST
Base fundamentals14 Oct 2026 · screener
Latest result14 Aug, 04:56 pm IST
Score20 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags15 Aug 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · Textiles P/E 42.1 (n=11)
Technical timing lens
Trend score and candlestick chart
40NeutralSMA20 -6.0% / mo · MACD + · near 52W low
Stock trend: 40
Sector RS: —
Textiles FPI tailwindFlow only
FPI equity flow was positive in both fortnights, but exact sector-index confirmation is unavailable. View sector evidence
Technical chart
KITEXD candles · FIT view-25.6%Latest close ₹121.75 on 2026-10-19
Bar
-1.8%
RSI
54
MACD hist
1.08
52W pos
7%
2026-10-19O ₹124.00H ₹127.79L ₹119.24C ₹121.75Vol 12.5L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
KITEXNifty 500
- KITEX
- -19.2%
- Nifty 500
- -5.6%
- Vs Nifty 500
- -13.6 pp
Chart stats
19 Oct 2026- From 52W high
- -47.7%
- 52W range position
- 7%
- ATR (14)
- 3.7%
- Volume vs 20D
- 3.13x
- Avg traded value
- ₹5.4 Cr
- 20D price channel
- ₹113.1 - ₹127.8
₹232.7
₹113.1 - ₹232.7
₹4.5
Latest completed session
20-session average
32.2% annualized volatility
No exact NSE sector index is mapped for this company. Nifty 500 remains the broad-market comparison.
Research snapshot
What the evidence says now
Weak fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend argues for patience, and recent execution is weak.
Suggested next step
Check latest quarters
Result consistency is weak; verify whether the thesis is improving or deteriorating.
U-Score
Legacy · OVERVALUED21
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Bad0
Revenue -19.8% · PAT -189.5% YoY
Technical
Neutral40
Price trend and sector-relative-strength timing.
Valuation
Legacy model-1413.8%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence57
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Bad · 0/100Rev -20% YoY · PAT -189% YoY · margin compression
Filed 14 Aug 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹158 Cr | -19.8% | -4.8% |
| EBITDA | ₹10 Cr | -70.6% | +400.0% |
| Operating margin | 6.0% | -1100 bps | +500 bps |
| PAT | ₹-17 Cr | -189.5% | NDF |
| PAT margin | -10.8% | -2040 bps | -534 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 80.70
- P/B
- 1.99
- EV/EBITDA
- 78.25
- Market Cap
- 2295.00Cr
Profitability
- ROE
- 3.06%
- ROCE
- 5.90%
- ROA
- 2.90%
- Dividend Y
- 0.43%
Growth (CAGR)
- Revenue 5Y
- 5.00%
- EPS 5Y
- -10.00%
- Revenue 3Y
- 2.00%
- EPS 3Y
- -17.00%
Balance Sheet
- Debt/Equity
- 0.18
- Interest Coverage
- 1.25×
- Altman Z
- 6.49
- Book Value
- 57.80
Cash Flow
- FCF Yield
- 1.79%
- FCF Positive Y
- 6/5
- OCF
- 257.00 Cr
- EPS TTM
- 2.10
Shareholding
- Promoter Hold
- 56.66%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 2%
Financial History
Updated 19/10/2026
Revenue
₹ CrLatest: 158-4.8% vs prev
Net Profit
₹ CrLatest: -17.0-88.9% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 54. Wait for confirmation.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~6.4% over last month) — short-term momentum negative.
- RSI(14) at 54 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 48% off 52W high · 8% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
11
RS percentile
Stage 4 Downtrend
1M return
+1.9%
3M return
-19.2%
6M return
-29.4%
1Y return
-41.7%
RS 1D
+1
RS 20D
+3
Sector rank
#7
Industry rank
-
Stage evidence
- Price is 16.9% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -4.7%.
- Both 3-month and 6-month returns are negative.
50-DMA
price below
200-DMA
price below
Sector
weakening
Industry
unranked
Relative-strength line vs Nifty 500 (base 100)
262 observations
19 Oct 2026Value 65.69+0.66%
RS vs Nifty 50066
Valuation & peers
U-Score 21 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 21 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
OVERVALUED
Fundamental score breakdown
U band · OVERVALUEDValuation2/30
Growth2/25
Quality0/20
Balance Sheet8/15
Cash Flow5/10
Piotroski
5/9 (+3)
Penalties
1
Raw sum
21
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
21/100 · legacy band OVERVALUED
Positive drivers
- Balance sheet contributes 8/15 to the score.
- Cash flow contributes 5/10 to the score.
- Growth contributes 2/25 to the score.
Main drags
- Fair-value margin of safety is negative at -1413.8%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
Sector valuation model
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Primary lens
Mid-cycle PE/EV/EBITDA using multi-year average margins or earnings.
Secondary checks
Current margin versus 5-year average, balance sheet strength, commodity cycle.
Main risk check
A low trailing PE may mean peak-cycle earnings, not true cheapness.
PE
80.7
PB
2.0
EV/EBITDA
78.3
ROE
3.1%
ROCE
5.9%
FCF Yield
1.8%
Debt/Equity
0.2
MoS
-1413.8%
Cyclical/value-trap warning
This sector can look cheap when profits are temporarily high. Check mid-cycle margins/earnings before relying on trailing PE.
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 20 Oct 2026
v4.3-runtime-valuation
Final score
21
Previous: 21
Legacy U-Score band
OVERVALUED
Previous: OVERVALUED
Margin of safety
-1413.8%
Previous: -1413.8%
Score history
12 stored score snapshots. Latest stored move: +0 points.
20 Oct 2026
v4.3-runtime-valuation
20
20
20
20
20
20
21
21
21
21
21
21
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹52.26
-133.0% MoS
Growth-justified P/E
3.8
Growth-justified Value
₹8.04
-1413.8% MoS
PEG
—
Comparable companies
Peers
Business-comparable peers in Textiles — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
KRISHNADEF
Micro
Krishna Defence And Allied Industries Limited
Retail
match 91
59
41.5
25.4%
-19%
FAIR VALUE
PGIL
Micro
Pearl Global Industries Limited
Retail
match 89
55
38.5
21.0%
+16%
FAIR VALUE
UFBL
Small
United Foodbrands Limited
Retail
match 89
22
—
-17.6%
—
OVERVALUED
VIPIND
Micro
VIP Industries Limited
Retail
match 89
16
—
-92.4%
—
OVERVALUED
SPAL
Small
S. P. Apparels Limited
Retail
match 88
41
22.4
11.2%
+34%
WATCHLIST
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-06-09T19:08:58.540Z
Management commentary snapshot
Kitex Garments projects over INR 1000 Cr annual turnover for FY2025, following a record turnover in FY2024-25, driven by ongoing capacity expansion and strategic merger with Kitex Childrenswear Limited.
The company is strategically expanding capacity and consolidating operations through a merger to capitalize on favorable global trade dynamics, particularly in the US market. Management projects significant revenue growth upon full operational capacity, supported by competitive tariff advantages and high efficiency.
Growth engines
Telangana Expansion Project
New project with investments of INR 3,406 Cr commenced in 2021, with Phase I commercial production starting at Warangal in April 2025 and Phase II at Hyderabad in December 2026.
Merger with Kitex Childrenswear Limited (KCL)
Board approved merger of KGL and KCL on Feb 14, 2025, with NCLT approval process underway, aiming to create the largest apparel manufacturer.
US Market Opportunity
Positioned to capitalize on the new US tariff structure and 'China +1 Policy', with potential shift of $21 billion business from China.
Enhanced Product Portfolio
Expanded product portfolio includes knitted/woven garments, 100% Cotton/Polyester, Blended, Polar fleece, Micro Fleece, FR Fleece, Men/Ladies inner and outer wear.
Capacity and execution
Warangal (Phase I) Commercial Production
Commercial production commenced in April 2025 at Warangal, part of the INR 1,750 Cr Phase I capital investment.
Hyderabad (Phase II) Commercial Production
Commercial production commencement at Hyderabad is scheduled for December 2026, with a capital investment of INR 1,800 Cr for Phase II.
Total Capital Investment
Total capital investment for both phases is INR 3,550 Cr, with INR 1,550 Cr invested till date.
Tailwinds
New US Tariff Structure
India's lower tariffs (36%) compared to competitors like China (245%) create a substantial competitive advantage for Indian exporters in the US market.
China +1 Policy
Existing China +1 Policy and potential shift of $21 billion business out of China benefits India.
Unrest in Bangladesh
Unrest in Bangladesh, which had significant exports to Europe ($21 billion) and USA ($9 billion), creates an opportunity for India.
Vietnam and Cambodia Shift
Vietnam and Cambodia are shifting to other value-added businesses from textiles, opening up market share.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare YOY
The presentation primarily highlights annual turnover figures and long-term growth trends, making year-over-year comparison most relevant for assessing overall business trajectory and expansion impact.
Sector KPIs management disclosed
Manufacturing Efficiency
Consistently achieving a manufacturing efficiency of 85% as against Global average of 55%.
India's Tariff Advantage (US Market)
India's total tariff of 36% is significantly lower than China (245%), Cambodia (59%), and Vietnam (56%) for apparel exports to the US.
Market Share Target (US)
Kitex aims to serve 1% of US textile garment requirements, representing a significant portion of potential Indian exports to the US.
Management forward view
Revenue Target Post-Expansion
Management projects revenue of INR 5,000 crores from Kitex Apparel Parks Limited at full production and INR 7,500 Cr upon full operational capacity post-merger.
Fund Raising Plans
Potential fund raising planned for FY 2025-26.
Becoming Largest Apparel Manufacturer
The merger with KCL aims to make Kitex the largest apparel manufacturer with unmatched infrastructure and technology.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Warangal Phase I Production Ramp-up | Commercial production commenced in April 2025. | Timely ramp-up to full capacity and contribution to FY2025-26 revenue target of INR 400 crores from KAPL. |
| Hyderabad Phase II Commissioning | Scheduled for December 2026. | Adherence to commissioning timeline and capital expenditure plan for Phase II. |
| KGL-KCL Merger Approval | Board approval received, NCLT approval process underway. | Successful completion of statutory approvals for the merger. |
| Market Share in US | Aims to serve 1% of US textile garment requirements. | Progress towards achieving the 1% US market share target, leveraging tariff advantages. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
57Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 20th percentile of the scored universe and 17th percentile within Textiles. Main check: results consistency is weak at 5/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
26 docs text-extracted · 0 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
20th percentile
overall median 67 · Textiles: 17th pctile, median 70 · Micro: 13th pctile, median 73
Evidence depth
Financial-only
26 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Needs extra due diligence; demand valuation comfort and recent improvement.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
86
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
67
acceptable · leverage and solvency
Discipline
30
weak · capital discipline
Results
5
weak · quarterly consistency
Trust positives
- ▸Promoter holding is 56.7%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.3%.
- ▸6 years of positive FCF.
Trust risks
- ▸4 latest quarters had PAT decline worse than 25% YoY.
- ▸Interest coverage is 1.3x.
- ▸ROCE is low at 5.9%.
- ▸ROE is low at 3.9%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Kitex Garments Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 17 Sep - Newspaper publication of notice of hearing as per the direction of Honorable NCLT, Kochi Bench in the matter of Scheme of Arrangement between Kitex Childrenswear …
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 5 Sep - Newspaper publication regarding special window for transfer and dematerialisation of physical shares
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 4 Sep - Newspaper publication of the notice of 34th Annual General Meeting of the Company
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2025
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.