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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of SKS Textiles Ltd

Basic Stock Data

Last Updated: June 26, 2024, 4:10 am

Market Cap 4.25 Cr.
Current Price 13.0
High / Low17.4/13.0
Stock P/E
Book Value 167
Dividend Yield0.00 %
ROCE42.6 %
ROE%
Face Value 10.0
PEG Ratio0.00

Competitors of SKS Textiles Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Lovable Lingerie Ltd 188 Cr. 127172/10743.9 1190.00 %3.26 %2.46 % 10.0
Kitex Garments Ltd 1,435 Cr. 215288/16525.7 1360.70 %6.93 %6.33 % 1.00
Thomas Scott India Ltd 290 Cr. 286360/57.029.0 51.80.00 %31.7 %31.4 % 10.0
Jet Knitwears Ltd 48.2 Cr. 109139/54.887.6 51.00.00 %5.07 %2.51 % 10.0
Swan Energy Ltd 19,699 Cr. 628783/21465.4 2000.02 %8.28 %7.03 % 1.00
Industry Average3,788.72 Cr2,182.0728.94178.480.35%17.14%24.83%6.95

Quarterly Result

Month
Sales
Expenses
Operating Profit
OPM %
Other Income
Interest
Depreciation
Profit before tax
Tax %
Net Profit
EPS in Rs

Last Updated: June 9, 2024, 7:07 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 25, 2024, 8:53 pm

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Sales92106119131147157163174188221
Expenses91104111123138148153164191809
Operating Profit1297991010-4-59-8
OPM %1%2%7%6%6%5%6%6%-2%-272%-1,346%
Other Income001112110-11
Interest00656666673
Depreciation00221222221
Profit before tax12223333-11-68-12
Tax %31%29%32%28%44%40%36%27%2%2%1%
Net Profit11111222-11-67-11
EPS in Rs12.8616.9910.6210.6214.1315.596.017.12-32.92-206.39-35.19
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2011-20122014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-2022
YoY Net Profit Growth (%)0.00%0.00%0.00%100.00%0.00%0.00%-650.00%-509.09%83.58%
Change in YoY Net Profit Growth (%)0.00%0.00%0.00%100.00%-100.00%0.00%-650.00%140.91%592.67%

Growth

Compounded Sales Growth
10 Years:-40%
5 Years:-67%
3 Years:-85%
TTM:-97%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:82%
Stock Price CAGR
10 Years:%
5 Years:-17%
3 Years:-20%
1 Year:-25%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: May 31, 2024, 7:06 am

Balance Sheet

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Equity Capital11111133333
Reserves152025262728353726-41-53
Borrowings2227403845474548546364
Other Liabilities79182031253322391918
Total Liabilities455784851051021161101224433
Fixed Assets12112419191817151398
CWIP00000000000
Investments00000000000
Other Assets32466165858399951093525
Total Assets455784851051021161101224433

Reserves and Borrowings Chart

SKS Textiles Ltd Cash Flow

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Cash from Operating Activity 00241-4-00-100
Cash from Investing Activity 0013-1111100
Cash from Financing Activity 00-2-812-0-1000
Net Cash Flow000-01-1-00000

Free Cash Flow

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Free Cash Flow-21.00-25.00-31.00-31.00-36.00-38.00-35.00-38.00-58.00-122.00-72.00

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

Financial Efficiency Indicators

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Debtor Days48817258947993759046012,243
Inventory Days1091171061081261283860
Days Payable55537451683910035,666
Cash Conversion Cycle488112612312613615116390363-22,562
Working Capital Days1041261291271101301441521352213,897
ROCE %4%10%12%12%11%10%-5%-110%-43%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Mar 2024
Promoters50.99%50.99%
Public49.01%49.01%
No. of Shareholders292292

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 22Mar 21Mar 20Mar 19Mar 18
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-35.00-206.00-33.007.136.69
Diluted EPS (Rs.)-35.00-206.00-33.007.136.01
Cash EPS (Rs.)-31.74-200.81-27.7912.3811.18
Book Value[Excl.RevalReserv]/Share (Rs.)-152.20-116.7389.94123.15116.31
Book Value[Incl.RevalReserv]/Share (Rs.)-152.20-116.7389.94123.15116.31
Revenue From Operations / Share (Rs.)1.8266.23575.83532.88498.99
PBDIT / Share (Rs.)-22.23-184.07-11.8730.4330.65
PBIT / Share (Rs.)-25.67-189.64-16.9825.1825.48
PBT / Share (Rs.)-35.47-209.56-33.619.819.51
Net Profit / Share (Rs.)-35.18-206.37-32.917.136.01
PBDIT Margin (%)-1219.96-277.91-2.065.706.14
PBIT Margin (%)-1408.81-286.31-2.944.725.10
PBT Margin (%)-1946.75-316.40-5.831.841.90
Net Profit Margin (%)-1930.93-311.58-5.711.331.20
Return on Networth / Equity (%)0.000.00-36.585.795.16
Return on Capital Employeed (%)22.35237.36-15.5518.4620.04
Return On Assets (%)-34.93-153.21-8.782.101.69
Long Term Debt / Equity (X)-0.21-0.280.120.030.02
Total Debt / Equity (X)-1.26-1.601.801.171.13
Asset Turnover Ratio (%)0.010.261.611.541.50
Current Ratio (X)0.350.491.251.441.32
Quick Ratio (X)0.350.490.610.620.65
Inventory Turnover Ratio (X)0.000.000.003.033.30
Interest Coverage Ratio (X)-2.20-9.10-0.701.941.88
Interest Coverage Ratio (Post Tax) (X)-2.51-9.22-0.961.441.35
Enterprise Value (Cr.)69.1467.2062.3356.7459.98
EV / Net Operating Revenue (X)116.433.110.330.320.36
EV / EBITDA (X)-9.54-1.12-16.125.726.00
MarketCap / Net Operating Revenue (X)11.530.380.060.060.11
Price / BV (X)-0.13-0.210.390.290.50
Price / Net Operating Revenue (X)11.530.380.060.060.11
EarningsYield-1.68-8.17-0.930.190.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 383.27

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: 2,848.19% compared to the current price 13

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Intrinsic Value: 181.32

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: 1,294.74% compared to the current price ₹13

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Last 5 Year EPS CAGR: -52.69%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
    1. The stock has a low average ROCE of -9.00%, which may not be favorable.
    2. The stock has a high average Working Capital Days of 125.55, which may not be favorable.
    3. The stock has a high average Cash Conversion Cycle of 125.91, which may not be favorable.
    4. The company has higher borrowings (44.82) compared to reserves (13.18), which may suggest financial risk.
    5. The company has not shown consistent growth in sales (118.18) and profit (-6.55).

    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 SKS Textiles Ltd:
      1. Net Profit Margin: -1930.93%
        • 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: 22.35% (Industry Average ROCE: 32.28%)
        • 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%: 0.00% (Industry Average ROE: 66.45%)
        • 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): -2.51
        • 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: 0.35
        • 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: (Industry average Stock P/E: 39.1)
        • 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: -1.26
        • 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 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

    SKS Textiles Ltd. is a Public Limited Listed company incorporated on 20/10/1997 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L17000MH1997PLC111406 and registration number is 111406. Currently Company is involved in the business activities of Weaving, manufacture of cotton and cotton mixture fabrics.. Company’s Total Operating Revenue is Rs. 0.59 Cr. and Equity Capital is Rs. 3.26 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Textiles - Readymade ApparelsH No. 1246/1K, GALA: 1-9, 1st Floor, Blndg B- Thane Maharashtra 421302pierricarlo@hotmail.com
    https://www.sks-textile.com
    Management
    NamePosition Held
    Mr. Sukanraj Bhabutmal ShahChairman & Wholetime Director
    Mr. Vicky Sukanraj ShahManaging Director & CFO
    Mr. Nokhelal Duij VarmaInd. Non-Executive Director
    Mr. Mihir M ManekInd. Non-Executive Director

    FAQ

    What is the latest fair value of SKS Textiles Ltd?

    The latest fair value of SKS Textiles Ltd is ₹383.26.

    What is the Market Cap of SKS Textiles Ltd?

    The Market Cap of SKS Textiles Ltd is 4.25 Cr..

    What is the current Stock Price of SKS Textiles Ltd as on 09 April 2024?

    The current stock price of SKS Textiles Ltd as on 09 April 2024 is 13.0.

    What is the High / Low of SKS Textiles Ltd stocks in FY 2024?

    In FY 2024, the High / Low of SKS Textiles Ltd stocks is ₹17.4/13.0.

    What is the Stock P/E of SKS Textiles Ltd?

    The Stock P/E of SKS Textiles Ltd is .

    What is the Book Value of SKS Textiles Ltd?

    The Book Value of SKS Textiles Ltd is 167.

    What is the Dividend Yield of SKS Textiles Ltd?

    The Dividend Yield of SKS Textiles Ltd is 0.00 %.

    What is the ROCE of SKS Textiles Ltd?

    The ROCE of SKS Textiles Ltd is 42.6 %.

    What is the ROE of SKS Textiles Ltd?

    The ROE of SKS Textiles Ltd is %.

    What is the Face Value of SKS Textiles Ltd?

    The Face Value of SKS Textiles Ltd is 10.0.

    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 SKS Textiles 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