1. At a Glance
AYM Syntex is India’s polyester & nylon yarn wizard — with fancy products for auto, fashion, and industrial sectors. But while the yarns are strong, the financials look a bit threadbare. With a PE of 116 and ROE of just 2.3%, is this textile stock spinning value or just spinning wheels?
2. Introduction with Hook
You know that one guy at the gym who wears expensive gear, lifts light, and flexes in the mirror?
That’s AYM Syntex. The numbers look glam on the surface — multi-polymer tech yarn, global exports, stock price up 100% YoY. But dig deeper, and:
- EPS = ₹1.99
- PE = 116x (Yes, one hundred sixteen)
- ROE = a modest 2.3%
So is this hype, or a slow-woven turnaround story?
3. Business Model (WTF Do They Even Do?)
Core Product Portfolio
| Segment | Description |
|---|---|
| Polyester Filament Yarn (PFY) | Fashion, furnishings, packaging |
| Nylon Filament Yarn (NFY) | High-strength, auto interiors |
| Bulk Continuous Filament (BCF) Yarn | Carpets, upholstery, technical uses |
They serve the following verticals:
✅ Fashion
✅ Automotive interiors
✅ Industrial yarns
Key Edge:
- Technical yarn IP
- One of India’s few backward-integrated multi-polymer manufacturers
- Custom yarn development (high margin niche)
4. Financials Overview
| FY | Sales (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | OPM % | EPS |
|---|---|---|---|---|---|
| 2021 | ₹947 | ₹94 | ₹14 | 10% | ₹2.82 |
| 2022 | ₹1,491 | ₹164 | ₹51 | 11% | ₹10.13 |
| 2023 | ₹1,458 | ₹96 | ₹7 | 7% | ₹1.42 |
| 2024 | ₹1,358 | ₹101 | ₹2 | 7% | ₹0.40 |
| 2025 | ₹1,489 | ₹118 | ₹12 | 8% | ₹1.99 |
🧵 Revenue is stable
📉 Profit margins dropped post FY22
🫠 PAT = Stuck in the low single digits
5. Valuation
| Basis | EPS | P/E Range | Fair Value Range |
|---|---|---|---|
| Realistic | ₹2 | 15–20x | ₹30–₹40 |
| Optimistic | ₹2 | 30–35x | ₹60–₹70 |
| Market Madness | ₹2 | 50–100x | ₹100–₹200+ |
Current Price = ₹231
EduFair™ Valuation Range = ₹30 – ₹70
Yikes. Either the market knows something we don’t, or it’s high on nylon fumes.
6. What’s Cooking – News, Triggers, Drama
🎯 Upcoming Results:
- Q1 FY26 results on 26 July
- All eyes on PAT margin stability
📉 Mgmt Changes:
- Senior management resignation on 1 July = Big shoes to fill?
🧵 ESOPs granted at ₹10
- ~10.5 lakh options in May 2025 — sign of long-term confidence?
🔍 Promoter Holding Fall
- Down from 74% in Sep 2022 to 65.9% in Jun 2025
7. Balance Sheet
| FY | Net Worth | Debt | Cash & Inv. | Net Debt |
|---|---|---|---|---|
| 2021 | ₹358 Cr | ₹226 Cr | Negligible | ₹226 Cr |
| 2023 | ₹420 Cr | ₹276 Cr | Low | ₹276 Cr |
| 2025 | ₹577 Cr | ₹202 Cr | Low | ₹202 Cr |
✅ Debt reduced in FY25
⚠️ Still ₹200+ Cr on books
💥 Interest cost is rising (₹43 Cr in FY25)
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| 2022 | ₹50 Cr | -₹57 Cr | ₹4 Cr | -₹3 Cr |
| 2023 | ₹118 Cr | -₹74 Cr | -₹39 Cr | +₹5 Cr |
| 2024 | ₹64 Cr | -₹55 Cr | -₹10 Cr | -₹2 Cr |
| 2025 | ₹108 Cr | -₹69 Cr | -₹28 Cr | +₹11 Cr |
📊 Consistent operating cash
🧱 Reinvestment into capex
🚫 No dividends paid in over a decade
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | 1.42% | 0.40% | 1.99% |
| ROCE % | 7% | 7% | 8.14% |
| OPM % | 7% | 7% | 8% |
| Debt/Equity | 0.66 | 0.87 | 0.35 |
🔴 ROE & ROCE are underwhelming
🟡 Margins improved marginally
🟢 Debt situation improving slowly
10. P&L Breakdown – Show Me the Money
| FY | Sales | Op Profit | PAT | OPM % | NPM % |
|---|---|---|---|---|---|
| FY23 | ₹1,458 Cr | ₹96 Cr | ₹7 Cr | 7% | 0.5% |
| FY24 | ₹1,358 Cr | ₹101 Cr | ₹2 Cr | 7% | 0.15% |
| FY25 | ₹1,489 Cr | ₹118 Cr | ₹12 Cr | 8% | 0.8% |
📌 PAT margin still <1% = 👎
💹 Operating efficiency improving
📉 Needs cost discipline or pricing power
11. Peer Comparison
| Company | CMP | P/E | ROE % | OPM % | Sales (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|---|---|---|
| KPR Mill | ₹1180 | 50.6 | 17.0% | 19.5% | ₹6,388 Cr | ₹797 Cr |
| Vardhman | ₹501 | 16.4 | 9.3% | 12.9% | ₹9,784 Cr | ₹883 Cr |
| Garware Tech | ₹931 | 39.9 | 18.7% | 20.7% | ₹1,540 Cr | ₹231 Cr |
| AYM Syntex | ₹231 | 116.1 | 2.3% | 7.9% | ₹1,489 Cr | ₹12 Cr |
📉 ROE & OPM lowest in peer set
📈 Highest PE (by a mile)
12. Miscellaneous – Shareholding, Promoters
| Holder | Sep 2022 | Mar 2024 | Jun 2025 |
|---|---|---|---|
| Promoters | 74.0% | 73.4% | 65.9% |
| FIIs | 0.22% | 0.11% | 3.81% |
| Public | 25.63% | 26.52% | 30.27% |
📉 Promoter stake dropping
📈 FIIs showing interest — FOMO or conviction?
13. EduInvesting Verdict™
AYM Syntex is at an inflection point. It’s built the capacity, reduced debt, and slightly improved profitability. But let’s be honest — the market seems to be pricing in a miracle turnaround rather than current fundamentals.
✅ Niche yarn products
✅ Stable topline
❌ Very high PE
❌ Weak ROE/NPM
❌ No dividend + high interest burden
What to watch:
- Q1 FY26 profit surprise
- Promoter stake direction
- Can PAT margin rise to 3–5% range?
EduFair Range: ₹30 – ₹70
Metadata
– Written by EduInvesting Research | 20 July 2025
– Tags: AYM Syntex, Technical Yarns, Nylon, Polyester Filament Yarn, Low Margin Textile, Turnaround Candidate, PE100+ Club, Promoter Exit
