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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sarla Performance Fibers Ltd

About the Company - Sarla Performance Fibers Ltd

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

Sarla Performance Fibers Ltd. Share Price Update

Share PriceValue
Today₹69.25
Previous Day₹67.64

Basic Stock Data of Sarla Performance Fibers Ltd

Market Cap 550 Cr.
Current Price 65.9
High / Low74.0/32.4
Stock P/E25.8
Book Value 48.9
Dividend Yield0.00 %
ROCE7.23 %
ROE5.45 %
Face Value 1.00

Data Source: screener.in

Competitors of Sarla Performance Fibers Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Raj Rayon Industries Ltd 1,506 Cr. 27.191.2/15.0455 1.950.00 %6.99 %12.4 % 1.00
Shekhawati Poly-Yarn Ltd 74.8 Cr. 2.172.70/0.4012.1 4.080.00 %32.2 %% 1.00
AYM Syntex Ltd 449 Cr. 88.893.0/52.5398 80.00.00 %6.84 %1.88 % 10.0
Weizmann Ltd 170 Cr. 107155/75.020.6 43.20.47 %12.3 %6.61 % 10.0
Mohit Industries Ltd 32.6 Cr. 23.024.9/11.0 1550.00 %1.49 %0.92 % 10.0
Industry Average446.48 Cr49.61177.1456.850.09%11.96%4.36%6.40

Sarla Performance Fibers Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales61.1180.3791.3886.18105.40114.10120.79118.52115.5882.3369.7885.3195.85
Expenses49.0566.3466.5564.2385.8796.42103.8297.77100.4174.2259.6072.9082.44
Operating Profit12.0614.0324.8321.9519.5317.6816.9720.7515.178.1110.1812.4113.41
OPM %19.73%17.46%27.17%25.47%18.53%15.50%14.05%17.51%13.13%9.85%14.59%14.55%13.99%
Other Income5.753.034.142.087.977.271.100.636.014.111.756.055.56
Interest2.401.575.541.240.631.270.560.830.951.531.521.311.45
Depreciation6.446.346.556.496.546.736.767.116.947.278.287.968.21
Profit before tax8.979.1516.8816.3020.3316.9510.7513.4413.293.422.139.199.31
Tax %18.51%24.37%41.47%26.56%27.15%28.26%31.35%28.27%27.77%38.30%98.59%31.56%29.97%
Net Profit7.316.929.8811.9714.8112.157.399.639.612.110.036.306.52
EPS in Rs0.860.821.171.431.771.450.891.141.140.260.020.760.78

Sarla Performance Fibers Ltd Quarterly Chart

Sarla Performance Fibers Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales222259262312299322304324311258431387347
Expenses189212215262238267251272260201349331298
Operating Profit33474750625553525157825749
OPM %15%18%18%16%21%17%18%16%16%22%19%15%14%
Other Income12912112720171816121019
Interest367668891212456
Depreciation881114152020222526273030
Profit before tax23353840515445383235643232
Tax %19%20%26%30%11%36%47%34%8%25%28%34%
Net Profit19282828453424262927462121
EPS in Rs2.724.033.993.355.394.082.893.043.523.145.542.562.58
Dividend Payout %18%29%19%24%19%27%38%36%0%0%36%0%

Sarla Performance Fibers Ltd Profit & Loss Yearly Chart

Sarla Performance Fibers Ltd Growth

Compounded Sales Growth
10 Years:4%
5 Years:5%
3 Years:8%
TTM:-21%
Compounded Profit Growth
10 Years:-3%
5 Years:2%
3 Years:-10%
TTM:-25%
Stock Price CAGR
10 Years:14%
5 Years:22%
3 Years:33%
1 Year:71%
Return on Equity
10 Years:11%
5 Years:9%
3 Years:9%
Last Year:5%

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

Sarla Performance Fibers Ltd 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

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%

Sarla Performance Fibers Ltd Financial Efficiency Indicators Chart

Sarla Performance Fibers Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters55.11%55.11%55.19%55.25%55.80%55.90%55.91%56.41%56.48%56.48%56.48%56.48%
FIIs0.02%0.02%0.67%1.00%0.85%0.87%0.89%0.70%0.64%0.65%0.71%0.65%
Public44.87%44.87%44.14%43.75%43.35%43.23%43.20%42.90%42.89%42.87%42.81%42.86%
No. of Shareholders15,44818,20720,95221,82024,60224,25725,21325,20325,30525,90827,95427,359

Sarla Performance Fibers Ltd Shareholding Pattern Chart

No. of Sarla Performance Fibers Ltd Shareholders

This stock is not held by any mutual fund

Sarla Performance Fibers Ltd ROCE Trend

Sarla Performance Fibers Ltd EPS Trend

Sarla Performance Fibers Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)2.565.673.143.513.04
Diluted EPS (Rs.)2.565.673.143.513.04
Cash EPS (Rs.)6.108.856.266.505.70
Book Value[Excl.RevalReserv]/Share (Rs.)47.3247.0541.2838.1134.95
Book Value[Incl.RevalReserv]/Share (Rs.)47.3247.0541.2838.1134.95
Revenue From Operations / Share (Rs.)46.3950.9830.8837.2438.84
PBDIT / Share (Rs.)7.9911.458.698.078.21
PBIT / Share (Rs.)4.448.275.615.055.57
PBT / Share (Rs.)3.877.834.243.784.61
Net Profit / Share (Rs.)2.565.673.183.493.06
NP After MI And SOA / Share (Rs.)2.565.673.143.513.04
PBDIT Margin (%)17.2122.4528.1521.6621.15
PBIT Margin (%)9.5716.2118.1813.5514.35
PBT Margin (%)8.3315.3513.7410.1511.86
Net Profit Margin (%)5.5111.1210.299.367.87
NP After MI And SOA Margin (%)5.5011.1110.179.427.81
Return on Networth / Equity (%)5.4012.047.619.218.69
Return on Capital Employeed (%)8.7915.6711.458.249.79
Return On Assets (%)3.677.544.484.454.10
Long Term Debt / Equity (X)0.000.050.110.510.51
Total Debt / Equity (X)0.260.330.340.730.80
Asset Turnover Ratio (%)0.640.680.390.490.56
Current Ratio (X)1.321.731.741.631.51
Quick Ratio (X)0.701.151.351.271.11
Inventory Turnover Ratio (X)1.882.852.022.993.63
Dividend Payout Ratio (NP) (%)78.260.000.0014.0816.24
Dividend Payout Ratio (CP) (%)32.780.000.007.578.69
Earning Retention Ratio (%)21.740.000.0085.9283.76
Cash Earning Retention Ratio (%)67.220.000.0092.4391.31
Interest Coverage Ratio (X)13.8025.926.356.378.50
Interest Coverage Ratio (Post Tax) (X)5.4213.843.323.754.16
Enterprise Value (Cr.)368.74538.57221.86269.73394.53
EV / Net Operating Revenue (X)0.951.260.860.861.22
EV / EBITDA (X)5.535.633.064.005.75
MarketCap / Net Operating Revenue (X)0.711.110.770.340.65
Retention Ratios (%)21.730.000.0085.9183.75
Price / BV (X)0.701.200.580.330.72
Price / Net Operating Revenue (X)0.711.110.770.340.65
EarningsYield0.070.100.130.270.11

Sarla Performance Fibers Ltd Profitability Ratios (%)

Sarla Performance Fibers Ltd Liquidity Ratios

Sarla Performance Fibers Ltd Liquidity Ratios (%)

Sarla Performance Fibers Ltd Interest Coverage Ratios (X)

Sarla Performance Fibers Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sarla Performance Fibers Ltd

Fair Value: ₹70.13

The stock is undervalued by 6.42% compared to the current price ₹65.9

*Investments are subject to market risks

Strength and Weakness of Sarla Performance Fibers Ltd

StrengthWeakness
  1. The company has higher reserves (269.23 cr) compared to borrowings (189.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (310.62 cr) and profit (39.92 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 5.79 and average Dividend Yield of 14.37%.
  2. The stock has a low average ROCE of 11.17%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 131.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 222.75, which may not be favorable.

Should I Buy Sarla Performance Fibers Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sarla Performance Fibers Ltd:
    1. Net Profit Margin: 5.51%
      • 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: 8.79% (Industry Average ROCE: 11.96%)
      • 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. Interest Coverage Ratio (Post Tax): 5.42
      • 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.
    4. Quick Ratio: 0.70
      • 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.
    5. ✓ Stock P/E: 26.2 (Industry average Stock P/E: 161.56)
      • 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.
    6. ✓ Total Debt / Equity: 0.26
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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