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SANATHAN TEXTILES LIMITED (SANATHAN) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹37.5B

ST SANATHAN TEXTILES LIMITED SANATHAN · NSE
Price₹463.50
Fair Value₹153.87
Upside-66.8%
Quality33/100
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Expensive Growth
Thin margins · 2.0% net margin
Moderate debt · negative free cash flow
Trails peers (4/12)
Narrow moat 26/100
Evidence: Medium Range ₹107.71 – ₹200.03 Share as image

Fair value as of: Aug 13, 2026

From 14 valuation models · updated 4 days ago

Share price +4.8% over the past month.

Below-average quality, and screening another 67% overvalued on our models.

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What matters now

  • The price sits above even our optimistic bull case (₹200.03). The favourable scenario is already priced in.
  • Weak quality (33/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (₹107.71 to ₹200.03) leaves room in how you read the outcome.
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Price vs Fair Value (20 months)

₹554.05 ₹300.70 Fair Value ₹153.87 Dec 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

20‑month range ₹300.70 – ₹554.05 · fair‑value band ₹107.71 – ₹200.03 · the ₹463.50 price screens above the ₹153.87 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

SANATHAN TEXTILES LIMITED (SANATHAN) currently trades at ₹463.50, while our model-based Fair Value estimate is ₹153.87, implying the stock looks roughly 66.8% overvalued today. The Quality Score stands at 33/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, SANATHAN TEXTILES LIMITED generated revenue of ₹38.1B at a net margin of 2.0%. Revenue grew 59.7% year over year. It earns a return on equity of 4.2%. Net debt stands at ₹13.4B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹107.71 (bear case) to ₹200.03 (bull case); at ₹463.50, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 31% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -7% fair-value upside, at -67%, SANATHAN screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
ROIC Compounder ₹42.76 ₹71.69 ₹97.00 72
Growth-Adj P/E ₹126.72 ₹181.02 ₹235.33 68
P/E Multiple ₹151.21 ₹201.61 ₹252.02 63
All 14 models by family
Earnings-Based
Graham-Dodd ₹62.32 ₹204.48 ₹273.35 54
Lynch FV ₹45.93 ₹65.62 ₹85.30 50
PEG = 1.0 ₹45.93 ₹65.62 ₹85.30 46
EPV ₹42.76 ₹71.69 ₹97.00 59
Multiples
P/E Multiple ₹151.21 ₹201.61 ₹252.02 63
P/S Multiple ₹116.84 ₹155.79 ₹194.74 58
P/B Multiple ₹116.84 ₹155.79 ₹194.74 55
EV/EBIT ₹175.12 ₹277.08 ₹379.05 53
EV/EBITDA ₹172.42 ₹273.49 ₹374.56 54
EV/Revenue ₹75.42 ₹163.79 ₹252.16 43
Asset-Based
NCAV (Graham) ₹110.90 ₹148.61 ₹221.80 50
Economic Profit
Residual Income ₹165.90 ₹164.73 ₹149.55 61
ROIC Compounder ₹42.76 ₹71.69 ₹97.00 72
Growth Earnings
Growth-Adj P/E ₹126.72 ₹181.02 ₹235.33 68

Widest divergence: Growth Earnings (₹181.02) versus Earnings-Based (₹65.62). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

Revenue (TTM) ₹38.1B
Revenue growth (YoY) +59.7%
Net margin 2.0%
Return on equity 4.2%
Free cash flow −₹3.9B FY2026
P/E ratio 50.5
More key figures
Operating margin 5.3%
EPS (TTM) ₹9.18
EPS growth (YoY) -50.4%
Net debt ₹13.4B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 33/100

Of which business quality 37 · Market factors (momentum, volatility) 49

Profitability 33
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 11
Disciplined investing over empire-building
Low Volatility 64
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 39
Distance to the 52-week high (market factor)
Net Issuance 42
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Sanathan Textiles Limited, together with its subsidiaries, manufactures and sells yarn in India and internationally. The company offers polyester filament yarn products, such as partially oriented, draw textured, air-textured, fully drawn, twisted, recycled, and melange; cotton yarn products, including cotton carded, cotton combed compact, and other …

Full company description

Sanathan Textiles Limited, together with its subsidiaries, manufactures and sells yarn in India and internationally. The company offers polyester filament yarn products, such as partially oriented, draw textured, air-textured, fully drawn, twisted, recycled, and melange; cotton yarn products, including cotton carded, cotton combed compact, and other variants; and yarns for technical textiles, such as low and super low shrinkage, high tenacity, and low elongation. It also provides dope dye, polyester coloured, textile performance, self-stretch polyester filament, cationic dyeable polyester, and customised yarns. The company's products are used in various applications, including apparel, athleisure/sportswear, travel and leisure, logistics, medical and home textiles, and automotive fabrics, as well as home furnishings, luggage, ropes, geogrid fabrics, seatbelts, upholstery, innerwear, umbrellas, personal protective equipment, and pipes. It sells its products under the Puro Cotton Yarns, Sanathan Reviro, Born Dyed, Sanathan Drycool, Sanathan Puro, S-Flex, CDP, and Sanathan Stretch brands. The company exports its products. Sanathan Textiles Limited was incorporated in 2005 and is based in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

SANATHAN TEXTILES LIMITED reported revenue of ₹38.1B in FY2026 versus ₹31.2B in FY2022, a compound +5.1%/yr. Reported net income was ₹774M in FY2026, compounding −31.7%/yr from FY2022.

Growth Quality 38/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹38.1B
Latest YoY
+29.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.4%
Revenue +5.1%/yr
FY22 ₹31.2B
FY23 ₹32.6B
FY24 ₹28.9B
FY25 ₹29.3B
FY26 ₹38.1B
Net income −31.7%/yr
FY22 ₹3.6B
FY23 ₹1.5B
FY24 ₹1.3B
FY25 ₹18.8M
FY26 ₹774M

SANATHAN screens 67% overvalued. Compare with Shenzhou International Group →

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Cite: Fair Value Calculator (2026). "SANATHAN TEXTILES LIMITED Fair Value". https://www.fairvalue-calculator.com/stock/SANATHAN

Peer Group

Textile Manufacturing · 317 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 33 · Bottom 25%
Fair Value upside −67% · Bottom 25%
Return on equity (TTM) 4% · Above median
Return on assets 3% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 5% · Above median
Revenue growth 60% · Top 25%
Debt / equity 0.68× · Higher than 75% of peers

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 50.5× · Pricier than 75% of peers
P/B 2.00× · Pricier than 75% of peers
P/S (TTM) 0.98× · Pricier than median
EV/EBITDA 17.1× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 8
FUTURE 100 · sector 0
PAST 17 · sector 15
HEALTH 66 · sector 95
DIVIDEND 0 · sector 35

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$42.10 HK$68.24 +62%
Tongkun Group 601233 ¥22.67 ¥14.53 -36%
Inner Mongolia ERDOS Resources Co 600295 ¥12.79 ¥14.35 +12%
Far Eastern New Century Corporation 1402 27.55 TWD 25.64 TWD -7%
K.P.R. Mill Limited KPRMILL ₹1,089 ₹467.49 -57%
HMT (Xiamen) New Technical Materials Co 603306 ¥71.55 ¥11.85 -83%
Vardhman Textiles Limited VTL ₹591.90 ₹437.53 -26%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 324.31 TRY +86%
Ruentex Industries Ltd 2915 54.10 TWD 133.24 TWD +146%
Welspun Living Limited WELSPUNLIV ₹165.23 ₹47.77 -71%

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Frequently asked questions

Is SANATHAN TEXTILES LIMITED (SANATHAN) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹153.87 versus a price of ₹463.50, about −67% (overvalued).
What is the fair value of SANATHAN?
Our model-based fair value for SANATHAN TEXTILES LIMITED is ₹153.87 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹463.50.
What is the quality score of SANATHAN?
SANATHAN TEXTILES LIMITED has a Quality Score of 33/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of SANATHAN TEXTILES LIMITED (SANATHAN)?
SANATHAN TEXTILES LIMITED reported trailing-twelve-month revenue of about ₹38.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of SANATHAN?
The net profit margin of SANATHAN TEXTILES LIMITED is about 2.0%, meaning it keeps roughly 2.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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