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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sarla Performance Fibers Ltd

Basic Stock Data

Last Updated: June 19, 2024, 2:25 pm

Market Cap 775 Cr.
Current Price 92.8
High / Low102/39.6
Stock P/E23.7
Book Value 56.1
Dividend Yield0.00 %
ROCE9.19 %
ROE7.58 %
Face Value 1.00
PEG Ratio10.39

Competitors of Sarla Performance Fibers Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Dhanlaxmi Fabrics Ltd 60.2 Cr. 70.280.0/36.0 55.30.00 %11.3 %13.6 % 10.0
AK Spintex Ltd 88.6 Cr. 176182/99.110.5 77.40.00 %28.0 %24.3 % 10.0
Anjani Synthetics Ltd 59.7 Cr. 40.549.9/27.014.0 55.90.00 %7.35 %5.28 % 10.0
AYM Syntex Ltd 506 Cr. 99.9107/63.260.0 83.70.00 %6.92 %2.00 % 10.0
Weizmann Ltd 193 Cr. 122155/85.521.5 45.90.41 %16.0 %13.0 % 10.0
Industry Average212.76 Cr81.9846.0270.880.15%12.29%7.09%8.36

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales91861051141211191168270859696106
Expenses6764869610498100746073828387
Operating Profit2522201817211581012131319
OPM %27%25%19%16%14%18%13%10%15%15%14%14%18%
Other Income4287116426664
Interest6111111221112
Depreciation7677777788866
Profit before tax1716201711131332991215
Tax %41%27%27%28%31%28%28%38%99%32%30%26%24%
Net Profit10121512710102067811
EPS in Rs1.171.431.771.450.891.141.140.260.020.760.781.021.38

Last Updated: June 10, 2024, 5:48 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 11:39 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales259262312299322304324311258431387383
Expenses212215262238267251272260201349331325
Operating Profit474750625553525157825758
OPM %18%18%16%21%17%18%16%16%22%19%15%15%
Other Income2912112720171816121021
Interest67668891212456
Depreciation81114152020222526273028
Profit before tax353840515445383235643245
Tax %20%26%30%11%36%47%34%8%25%28%34%27%
Net Profit282828453424262927462133
EPS in Rs4.033.993.355.394.082.893.043.523.145.542.563.94
Dividend Payout %29%19%24%19%27%38%36%0%0%36%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%0.00%60.71%-24.44%-29.41%8.33%11.54%-6.90%70.37%-54.35%57.14%
Change in YoY Net Profit Growth (%)0.00%0.00%60.71%-85.16%-4.97%37.75%3.21%-18.44%77.27%-124.72%111.49%

Growth

Compounded Sales Growth
10 Years:4%
5 Years:3%
3 Years:14%
TTM:-1%
Compounded Profit Growth
10 Years:2%
5 Years:5%
3 Years:8%
TTM:53%
Stock Price CAGR
10 Years:15%
5 Years:31%
3 Years:41%
1 Year:143%
Return on Equity
10 Years:10%
5 Years:9%
3 Years:8%
Last Year:8%

Last Updated: June 16, 2024, 4:55 pm

Sarla Performance Fibers Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital7778888888888
Reserves117136162221253250265283310336380387400
Borrowings65114233259302254211241266149135109120
Other Liabilities515461696386778274911047782
Total Liabilities240311463558627598560615659585627580610
Fixed Assets82102196189211263241255263251232259246
CWIP0271000310101600
Investments13555885687075851751125145
Other Assets157179212311331266245274309317329196219
Total Assets240311463558627598560615659585627580610

Reserves and Borrowings Chart

Sarla Performance Fibers Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -12735283614930453037102
Cash from Investing Activity -11-54-128-6-57-3918-60-4831-26-56
Cash from Financing Activity 1136-10861-10-27-60193-56-18-46
Net Cash Flow-19-2025716-57-1014-71

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-67.00-186.00-209.00-240.00-199.00-158.00-189.00-215.00-92.00-53.00-52.00-77.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Sarla Performance Fibers Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1068210592939395901071328557
Inventory Days163161187211276175141122135239191179
Days Payable663050674043313455957658
Cash Conversion Cycle203213243236329225205179186276200178
Working Capital Days15114412914213681110119108200138114
ROCE %15%18%13%10%11%12%9%9%8%9%13%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters55.11%55.19%55.25%55.80%55.90%55.91%56.41%56.48%56.48%56.48%56.48%56.61%
FIIs0.02%0.67%1.00%0.85%0.87%0.89%0.70%0.64%0.65%0.71%0.65%0.73%
Public44.87%44.14%43.75%43.35%43.23%43.20%42.90%42.89%42.87%42.81%42.86%42.66%
No. of Shareholders18,20720,95221,82024,60224,25725,21325,20325,30525,90827,95427,35928,342

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)3.942.565.673.143.51
Diluted EPS (Rs.)3.942.565.673.143.51
Cash EPS (Rs.)7.266.108.856.266.50
Book Value[Excl.RevalReserv]/Share (Rs.)51.3047.3247.0541.2838.11
Book Value[Incl.RevalReserv]/Share (Rs.)51.3047.3247.0541.2838.11
Revenue From Operations / Share (Rs.)45.9046.3950.9830.8837.24
PBDIT / Share (Rs.)9.437.9911.458.698.07
PBIT / Share (Rs.)6.094.448.275.615.05
PBT / Share (Rs.)5.403.877.834.243.78
Net Profit / Share (Rs.)3.922.565.673.183.49
NP After MI And SOA / Share (Rs.)3.942.565.673.143.51
PBDIT Margin (%)20.5517.2122.4528.1521.66
PBIT Margin (%)13.279.5716.2118.1813.55
PBT Margin (%)11.768.3315.3513.7410.15
Net Profit Margin (%)8.535.5111.1210.299.36
NP After MI And SOA Margin (%)8.585.5011.1110.179.42
Return on Networth / Equity (%)7.685.4012.047.619.21
Return on Capital Employeed (%)10.638.7915.6711.458.24
Return On Assets (%)5.053.677.544.484.45
Long Term Debt / Equity (X)0.050.000.050.110.51
Total Debt / Equity (X)0.310.260.330.340.73
Asset Turnover Ratio (%)0.620.640.680.390.49
Current Ratio (X)1.491.321.731.741.63
Quick Ratio (X)1.000.701.151.351.27
Inventory Turnover Ratio (X)2.031.882.852.022.99
Dividend Payout Ratio (NP) (%)0.0078.260.000.0014.08
Dividend Payout Ratio (CP) (%)0.0032.780.000.007.57
Earning Retention Ratio (%)0.0021.740.000.0085.92
Cash Earning Retention Ratio (%)0.0067.220.000.0092.43
Interest Coverage Ratio (X)13.5613.8025.926.356.37
Interest Coverage Ratio (Post Tax) (X)6.635.4213.843.323.75
Enterprise Value (Cr.)568.56368.74538.57221.86269.73
EV / Net Operating Revenue (X)1.480.951.260.860.86
EV / EBITDA (X)7.225.535.633.064.00
MarketCap / Net Operating Revenue (X)1.160.711.110.770.34
Retention Ratios (%)0.0021.730.000.0085.91
Price / BV (X)1.040.701.200.580.33
Price / Net Operating Revenue (X)1.160.711.110.770.34
EarningsYield0.070.070.100.130.27

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 102.80

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 10.77% compared to the current price 92.8

Intrinsic Value: 105.14

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 13.30% compared to the current price ₹92.8

Last 5 Year EPS CAGR: 2.28%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (287.25 cr) compared to borrowings (200.67 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (321.00 cr) and profit (42.42 cr) over the years.
  1. The stock has a low average ROCE of 11.17%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 131.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 222.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sarla Performance Fibers Ltd:
    1. Net Profit Margin: 8.53%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 10.63% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 7.68% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 6.63
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.00
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 23.7 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.31
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Sarla Performance Fibers Ltd. is a Public Limited Listed company incorporated on 25/11/1993 and has its registered office in the State of Dadra & Nagar Haveli, India. Company’s Corporate Identification Number(CIN) is L31909DN1993PLC000056 and registration number is 000056. Currently Company is involved in the business activities of Manufacture of synthetic or artificial mono-filament or strip. Company’s Total Operating Revenue is Rs. 423.54 Cr. and Equity Capital is Rs. 8.35 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Processing/TexturisingSurvey No.59/1/4, Amli Piparia Indutrial Estate, Silvassa Dadra & Nagar Haveli 396230investors@sarlafibers.com
http://www.sarlafibers.com
Management
NamePosition Held
Mr. Krishnakumar M JhunjhunwalaChairman & Managing Director
Mr. Kanav Krishna JhunjhunwalaExecutive Director
Ms. Neha JhunjhunwalaExecutive Director
Mr. Paulo Manuel Ferreira Moura De CastroInd. Non-Executive Director
Mr. Parantap DaveInd. Non-Executive Director
Ms. Shreya DesaiInd. Non-Executive Director
Mr. Sachin AbhyankarNon Executive Director
Mr. Bharat K JhamvarInd. Non-Executive Director

FAQ

What is the latest fair value of Sarla Performance Fibers Ltd?

The latest fair value of Sarla Performance Fibers Ltd is ₹102.80.

What is the Market Cap of Sarla Performance Fibers Ltd?

The Market Cap of Sarla Performance Fibers Ltd is 775 Cr..

What is the current Stock Price of Sarla Performance Fibers Ltd as on 23 June 2024?

The current stock price of Sarla Performance Fibers Ltd as on 23 June 2024 is ₹92.8.

What is the High / Low of Sarla Performance Fibers Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sarla Performance Fibers Ltd stocks is 102/39.6.

What is the Stock P/E of Sarla Performance Fibers Ltd?

The Stock P/E of Sarla Performance Fibers Ltd is 23.7.

What is the Book Value of Sarla Performance Fibers Ltd?

The Book Value of Sarla Performance Fibers Ltd is 56.1.

What is the Dividend Yield of Sarla Performance Fibers Ltd?

The Dividend Yield of Sarla Performance Fibers Ltd is 0.00 %.

What is the ROCE of Sarla Performance Fibers Ltd?

The ROCE of Sarla Performance Fibers Ltd is 9.19 %.

What is the ROE of Sarla Performance Fibers Ltd?

The ROE of Sarla Performance Fibers Ltd is 7.58 %.

What is the Face Value of Sarla Performance Fibers Ltd?

The Face Value of Sarla Performance Fibers Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sarla Performance Fibers Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE