Why is Riba Textiles Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.45%
- Poor long term growth as Net Sales has grown by an annual rate of 10.03% and Operating profit at 8.01% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.12 times
2
Flat results in Dec 24
- INTEREST(9M) At Rs 4.28 cr has Grown at 25.15%
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 12-Mar-25
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
Underperformed the market in the last 1 year
- Even though the market (BSE 500) generated negative returns of -1.08% in the last 1 year, its fall in the stock was much higher with a return of -18.67%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Textile )
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Riba Textiles for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Riba Textiles
-18.67%
-0.37
50.64%
SENSEX
0.45%
0.02
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
10.03%
EBIT Growth (5y)
8.01%
EBIT to Interest (avg)
2.80
Debt to EBITDA (avg)
4.24
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.63
Tax Ratio
27.94%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.69%
ROE (avg)
8.74%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
18
Price to Book Value
0.76
EV to EBIT
7.69
EV to EBITDA
5.73
EV to Capital Employed
0.86
EV to Sales
0.45
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
10.38%
ROE (Latest)
9.46%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
Technical Movement
7What is working for the Company
NET SALES(HY)
At Rs 152.83 cr has Grown at 25.89%
PBDIT(Q)
Highest at Rs 6.83 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 9.02%
-2What is not working for the Company
INTEREST(9M)
At Rs 4.28 cr has Grown at 25.15%
Loading Valuation Snapshot...
Here's what is working for Riba Textiles
Net Sales - Quarterly
At Rs 75.69 cr has Grown at 34.32%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 6.83 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 9.02%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Here's what is not working for Riba Textiles
Interest - Nine Monthly
At Rs 4.28 cr has Grown at 25.15%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)