1. At a Glance

₹39 crore market cap. A stock price of ₹89 that has politely slid downhill by ~18% in the last three months, as if gravity suddenly remembered hosiery stocks exist. Jet Knitwears is one of those companies that has been around since 1969 — yes, before color TV — and is still manufacturing cotton innerwear, thermals, and basics while the rest of the market is busy launching AI-powered underwear startups (don’t laugh, someone will try).

Despite five decades of existence, the latest half-year results show revenue of ₹12.48 crore and net profit of ₹0.05 crore. That’s not a typo. Five lakhs of profit on ₹12.48 crore sales. Meanwhile, the stock trades at a P/E of ~52×, which is what you usually see for fast-growing consumer brands, not for a company whose five-year sales CAGR is -9% and whose ROE politely hovers around 1.5%.

Yet, promoters hold a solid 68.2%, debt sits at ₹14 crore, and the company keeps reporting profits — tiny, but technically profits. The operating margin is still ~9.6%, and the company sells dermatologist-friendly, azo-free cotton products. On paper, it sounds like a niche premium story. On the balance sheet, it looks like a business jogging slowly while valuation is sprinting ahead. Curious already? Good. Let’s unzip this business carefully.

2. Introduction

Jet Knitwears is that uncle at Indian weddings who still wears a crisp white banyan and says, “Cotton hi best hota hai.” And honestly, he isn’t wrong. The company has been manufacturing cotton hosiery products for over five decades, exporting and selling through a network of 5,000+ retailers. That’s not trivial. Longevity in Indian textiles usually means the promoters know how to survive cotton price cycles, labour tantrums, and festive demand crashes.

But survival and wealth creation are two very different chaddis. Over the last decade, Jet Knitwears has seen declining revenues, shrinking returns, and ballooning working capital days. Debtors at 241 days and inventory at 336 days suggest money is enjoying a long vacation outside the company’s bank account.

The market, however, seems confused. On one hand, the stock has corrected. On the other, it still trades at a premium multiple versus peers and industry median. Is this a misunderstood niche brand play? Or is it a slow-moving textile company priced like a growth influencer?

Before we pass judgement, let’s understand what Jet actually does — beyond stitching baniyans and thermals while hoping winter comes early.

3. Business Model – WTF Do They Even Do?

Jet Knitwears manufactures cotton hosiery products across men, women, and kids categories. Think vests, underwear, thermals, leggings, t-shirts, track pants, and casualwear. This is not fashion. This is necessity clothing. People may skip Zara, but they don’t skip baniyans.

The company markets products under brands like Lycot Australia, Jet, Jet Eco, Fresh-Long, Boski, Take-Off, and the more recently launched “Very Good” brand, which targets low-to-medium income consumers at competitive prices. That name alone tells you the marketing budget is… disciplined.

The USP is skin-friendly, anti-bacterial, dermatologist-recommended, azo-free cotton clothing. Certified by IIT Kanpur’s ecological testing facility, no less. This gives Jet a niche positioning, especially for customers with skin allergies — babies, kids, and sensitive adults.

Revenue mix historically shows ~51% from cotton cloth, ~35% hosiery products, and the rest from winter and ladies garments. Translation: a large chunk still comes from bulk cotton fabric sales rather than branded retail dominance.

This is not Page Industries. Jet sells basics, not aspiration. Volumes matter, pricing power doesn’t. And when cotton prices move or demand slows, margins politely collapse.

So here’s the question: can a basics-driven hosiery business justify a premium valuation without growth? Keep that thought warm — like a Jet thermal.

4. Financials Overview

Result Type Lock: The latest declared results are Half-Yearly Results (unaudited results for half-year ended 30 Sep 2025).
Therefore, Annualised EPS = Latest EPS × 2.

Half-Yearly Performance Comparison (₹ in Crores)

Annualised EPS = ₹0.11 × 2 = ₹0.22

At ₹89 stock price, implied P/E ≈ 405× on annualised H1 earnings. Suddenly that 52× trailing P/E doesn’t look scary