Buy Sanathan Textiles, target price Rs 490: Axis Securities

Axis Securities has a buy call on Sanathan Textiles with a target price of Rs 490. The current market price of Sanathan Textiles is Rs 447.9. The time period given by the analyst is 3-6 months when Sanathan Textiles price can reach the defined target. Sanathan Textiles, incorporated in 2005, is a Small Cap company with a market cap of Rs 3778.35 crore, operating in the General sector.

Sanathan Textiles' key products/revenue segments include Textiles, Scrap and Export Incentives for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 735.91 crore, down -1.69 % from last quarter Total Income of Rs 748.57 crore and down -3.88 % from last year same quarter Total Income of Rs 765.63 crore. The company has reported net profit after tax of Rs 43.65 crore in the latest quarter.

The company's top management includes Mr.Paresh Vrajlal Dattani, Mr.Ajay Vallabhdas Dattani, Mr.Anilkumar Vrajdas Dattani, Mr.Dinesh Vrajdas Dattani, Mr.Debabrata Sarkar, Mr.Khurshed Thanawalla, Ms.Rupal Vora, Mr.Vinay Aggarwal. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 8 crore shares outstanding.

Investment Rationale
While newly listed, Sanathan holds rich experience in the Industry and has built long-term relationships with major clients. Axis Securities expects the company to post a revenue growth of 47%/31% in FY26/FY27, with steady improvement in margins. Accordingly, the brokerage recommends a BUY rating on the stock with a target price of Rs 490/share, implying an upside of 11% from the CMP.