Companies/Consumer Discretionary/RELI.PSX

RELI.PSX—55

Reliance Cotton Spinning Mills Ltd

Textiles & Leather GoodsVerified

Score breakdown

Profitability+35Sentiment+30Risk penalty-3Missing signals-3

Quality breakdown

Key fields100Profile38Conclusion92AI synthesis40Observations3

Reliance Cotton Spinning Mills has a debt-to-equity ratio of 0.46, indicating a relatively conservative capital structure, and a current ratio of 1.34, suggesting moderate liquidity. However, the company reports negative net cash after subtracting total debt, signaling potential liquidity constraints [doc:HA-latest]. The company's return on equity (ROE) of 19.84% and return on assets (ROA) of 10.72% outperform the typical thresholds for the Textiles & Leather Goods industry, which are often below 10% ROE and 5% ROA. This suggests strong profitability and efficient asset utilization [doc:HA-latest]. The company's revenue is concentrated in a single business line—yarn manufacturing—without disclosed geographic diversification. While the company operates in Pakistan, there is no indication of international revenue exposure or segment breakdown in the latest financials [doc:HA-latest]. Looking ahead, the company's revenue is expected to grow, supported by a strong operating cash flow of PKR 986.19 million and free cash flow of PKR 214.36 million. However, capital expenditures of PKR -132.43 million suggest ongoing investment in production capacity [doc:HA-latest]. The company faces moderate liquidity risk due to negative net cash and a medium risk rating. Dilution risk is low, with no near-term pressure from share issuance or convertible debt. However, the company's reliance on a single product line and geographic market increases exposure to demand volatility [doc:HA-latest]. Recent filings and transcripts are not available in the input data, so no specific events can be cited at this time [doc:HA-latest].

Profile

CompanyReliance Cotton Spinning Mills Ltd

TickerRELI.PSX

SectorConsumer Cyclicals

BusinessCyclical Consumer Products

Industry groupCyclical Consumer Products

IndustryTextiles & Leather Goods

AI analysis

Business. Reliance Cotton Spinning Mills Limited is a Pakistan-based company engaged in the manufacture and sale of yarn, including Acrylic, Slub, Melange, and Viscose, with production facilities in Sheikhupura District, Punjab [doc:HA-latest].

Classification. Reliance Cotton Spinning Mills is classified under the Textiles & Leather Goods industry within the Consumer Cyclicals economic sector, with a confidence level of 0.92 [doc:verified market data].

Key takeaways

Reliance Cotton Spinning Mills has strong profitability metrics, with ROE of 19.84% and ROA of 10.72%.
The company maintains a conservative capital structure with a debt-to-equity ratio of 0.46.
Liquidity is moderate, with a current ratio of 1.34 and negative net cash after debt.
The company's business is concentrated in yarn manufacturing with no disclosed geographic diversification.
Free cash flow of PKR 214.36 million supports potential growth or shareholder returns.
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Financial snapshot

PeriodHA-latest

CurrencyPKR

Revenue$17.84B

Gross profit$2.20B

Operating income$1.86B

Net income$2.92B

R&D—

SG&A—

D&A—

SBC—

Operating cash flow$986.2M

CapEx-$1.32B

Free cash flow$2.14B

Total assets$27.25B

Total liabilities$12.52B

Total equity$14.73B

Cash & equivalents—

Long-term debt$6.82B

Annual history (last 5)

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Valuation

Market price—

Market cap—

Enterprise value—

P/E—

Reported non-GAAP P/E—

EV/Revenue—

EV/Op income—

EV/OCF—

P/B—

P/Tangible book—

Tangible book$14.73B

Net cash-$6.82B

Current ratio1.3

Debt/Equity0.5

ROA10.7%

ROE19.8%

Cash conversion34.0%

CapEx/Revenue-7.4%

SBC/Revenue—

Asset intensity—

Dilution ratio0.0%

Risk assessment

Dilution riskLow

Liquidity riskMedium

Net cash is negative after subtracting total debt.

Industry benchmarks

Activity: Textiles & Leather Goods · cohort 271 companies

MetricRELI.PSXActivity

Op margin10.4%4.3% medp25 -0.2% · p75 8.6%top quartile

Net margin16.4%2.3% medp25 -0.6% · p75 6.5%top quartile

Gross margin12.3%17.4% medp25 10.3% · p75 28.8%below median

CapEx / revenue-7.4%-2.9% medp25 -6.0% · p75 -1.1%bottom quartile

Debt / equity46.0%46.3% medp25 9.2% · p75 99.3%below median

Source data

Underlying data the analysis-pipeline pulls and audits. Fetch timestamps + content hashes show when each source was last refreshed.

Company fundamentalsperiod FQ-7 · history via verified-market-data

no public URL

2026-05-04 19:11 UTC#8bcdaea3

Source: analysis-pipeline (hybrid)Generated: 2026-05-04 19:12 UTCJob: f2688846