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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of SP Apparels Ltd (SPAL)

Basic Stock Data

Last Updated: June 17, 2024, 8:15 pm

Market Cap 1,545 Cr.
Current Price 616
High / Low710/414
Stock P/E17.2
Book Value 304
Dividend Yield0.49 %
ROCE14.6 %
ROE12.5 %
Face Value 10.0
PEG Ratio1.20

Competitors of SP Apparels Ltd (SPAL)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Swan Energy Ltd 18,887 Cr. 603783/21462.7 2000.02 %8.28 %7.03 % 1.00
Libas Consumer Products Ltd 48.0 Cr. 18.227.4/11.09.22 29.80.00 %7.15 %6.89 % 10.0
VIP Clothing Ltd 308 Cr. 37.359.8/28.6 16.80.00 %3.15 %9.09 % 2.00
Page Industries Ltd 44,120 Cr. 39,56142,885/33,07077.5 1,4320.94 %45.0 %38.4 % 10.0
Integra Essentia Ltd 495 Cr. 4.647.71/2.5132.4 1.100.00 %17.1 %15.9 % 1.00
Industry Average3,608.51 Cr2,107.9827.96172.090.34%18.47%24.24%6.95

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales192133222250254246306251275248292252295
Expenses167105182212209203268229235212246218254
Operating Profit25284039454338224036473441
OPM %13%21%18%15%18%17%12%9%14%15%16%14%14%
Other Income0014579824652
Interest2314458276453
Depreciation889991089991099
Profit before tax15173130373530192525382430
Tax %30%31%25%18%31%27%25%32%19%40%26%28%5%
Net Profit11122325252623132115291828
EPS in Rs4.124.509.059.599.8010.068.925.288.215.9811.387.0311.35

Last Updated: June 10, 2024, 6:02 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:01 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales4254504715326326628258086528591,0781,087
Expenses370386403447528555691724547707935930
Operating Profit5564698510410613484105152143158
OPM %13%14%15%16%16%16%16%10%16%18%13%15%
Other Income017-122116313192316
Interest34363125182962314121919
Depreciation171820201922223032353638
Profit before tax412242887711094459115111118
Tax %51%46%60%33%38%33%33%-6%27%26%26%24%
Net Profit2610195448734743858390
EPS in Rs1.403.975.9810.9821.3019.0028.5618.2616.8032.9632.8835.74
Dividend Payout %0%0%0%0%0%3%0%0%13%0%9%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 (%)200.00%66.67%90.00%184.21%-11.11%52.08%-35.62%-8.51%97.67%-2.35%8.43%
Change in YoY Net Profit Growth (%)0.00%-133.33%23.33%94.21%-195.32%63.19%-87.70%27.11%106.19%-100.03%10.79%

Growth

Compounded Sales Growth
10 Years:9%
5 Years:6%
3 Years:19%
TTM:1%
Compounded Profit Growth
10 Years:30%
5 Years:4%
3 Years:27%
TTM:9%
Stock Price CAGR
10 Years:%
5 Years:18%
3 Years:40%
1 Year:50%
Return on Equity
10 Years:13%
5 Years:12%
3 Years:13%
Last Year:12%

Last Updated: June 13, 2024, 11:23 am

SP Apparels Ltd (SPAL) Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital17171717172525262626262525
Reserves4144505996332372458498533612649695
Preference Capital202027272001900000
Borrowings392360331276259185204211226194231245258
Other Liabilities89111127167189134208192143160193179186
Total Liabilities5395315255205616778108878929121,0621,0971,164
Fixed Assets282299285275277299307317444444450459455
CWIP260004065401081012
Investments1111158310003113117
Other Assets230230240244280319465515448458602515581
Total Assets5395315255205616778108878929121,0621,0971,164

Reserves and Borrowings Chart

SP Apparels Ltd (SPAL) Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 317958844926-182838027216
Cash from Investing Activity -12-8-14-6-28-116-15-60-39-21-29-160
Cash from Financing Activity -20-69-44-77-209219-17-45-4224-48
Net Cash Flow-12011235-117218

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow35.0037.0042.0065.00104.0087.00134.0084.00105.00152.00143.00158.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days524444585678915742654935
Inventory Days298270221190228147268277233327342223
Days Payable1311341311732091011451228612311674
Cash Conversion Cycle2191801347475123215212189269275184
Working Capital Days1391129942539814111911615215096
ROCE %9%11%14%18%23%17%18%11%10%16%15%

Financial Efficiency Indicators Chart

SP Apparels Ltd (SPAL) Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters61.69%61.69%61.69%61.69%61.69%61.69%61.69%61.93%61.93%61.93%61.93%61.93%
FIIs0.02%0.05%0.42%0.98%1.19%1.31%1.16%1.23%1.09%1.07%1.50%1.39%
DIIs14.73%14.74%15.30%15.01%15.05%16.35%16.86%17.61%17.73%17.60%18.47%19.08%
Public23.57%23.52%22.59%22.33%22.07%20.66%20.29%19.22%19.25%19.41%18.12%17.61%
No. of Shareholders12,09015,05615,43315,31418,35019,66526,84119,61218,39217,77017,20316,376

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
DSP Small Cap Fund2,100,4731130.682,100,4732024-06-170%
UTI Aggressive Hybrid Fund471,9400.5929.362,100,4732024-06-17-77.53%
ICICI Prudential Smallcap Fund427,3090.426.592,100,4732024-06-17-79.66%
Franklin India Smaller Companies Fund273,6000.1617.022,100,4732024-06-17-86.97%
ICICI Prudential Equity & Debt Fund193,1960.0412.022,100,4732024-06-17-90.8%
UTI Retirement Fund123,6040.197.692,100,4732024-06-17-94.12%
ICICI Prudential Dividend Yield Equity Fund81,7310.185.082,100,4732024-06-17-96.11%
LIC MF Small Cap Fund20,4730.641.242,100,4732024-06-17-99.03%
LIC MF Long Term Value Fund16,1880.960.982,100,4732024-06-17-99.23%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)35.7232.3732.9616.8018.26
Diluted EPS (Rs.)35.7232.3732.9616.8018.26
Cash EPS (Rs.)50.7647.2946.4229.3829.91
Book Value[Excl.RevalReserv]/Share (Rs.)301.76265.86245.69214.82201.15
Book Value[Incl.RevalReserv]/Share (Rs.)301.76265.86245.69214.82201.15
Revenue From Operations / Share (Rs.)433.33429.55334.50253.89314.86
PBDIT / Share (Rs.)69.3865.9762.7541.1541.59
PBIT / Share (Rs.)54.3351.5649.2928.5729.94
PBT / Share (Rs.)46.8844.1444.6823.0217.28
Net Profit / Share (Rs.)35.7232.8832.9616.8018.26
NP After MI And SOA / Share (Rs.)35.6932.8832.9916.8218.27
PBDIT Margin (%)16.0115.3518.7616.2013.20
PBIT Margin (%)12.5312.0014.7311.259.50
PBT Margin (%)10.8110.2713.359.065.48
Net Profit Margin (%)8.247.659.856.615.79
NP After MI And SOA Margin (%)8.237.659.866.625.80
Return on Networth / Equity (%)11.7212.2413.297.738.97
Return on Capital Employeed (%)16.4917.3316.9911.2812.57
Return On Assets (%)7.847.527.984.745.26
Long Term Debt / Equity (X)0.040.010.050.090.11
Total Debt / Equity (X)0.260.320.310.320.41
Asset Turnover Ratio (%)0.970.990.760.640.85
Current Ratio (X)1.911.611.791.671.53
Quick Ratio (X)1.070.760.740.740.71
Inventory Turnover Ratio (X)1.151.131.110.761.01
Interest Coverage Ratio (X)9.318.8913.607.414.69
Interest Coverage Ratio (Post Tax) (X)5.795.438.154.023.49
Enterprise Value (Cr.)1574.38951.041012.32529.17323.70
EV / Net Operating Revenue (X)1.450.881.180.810.40
EV / EBITDA (X)9.045.756.285.013.03
MarketCap / Net Operating Revenue (X)1.340.741.020.600.19
Price / BV (X)1.911.201.380.700.30
Price / Net Operating Revenue (X)1.340.741.020.600.19
EarningsYield0.060.100.090.100.29

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 656.80

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: 6.62% compared to the current price 616

Intrinsic Value: 751.22

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: 21.95% compared to the current price ₹616

Last 5 Year EPS CAGR: 14.37%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (370.17 cr) compared to borrowings (9.42 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (526.50 cr) and profit (65.17 cr) over the years.
  1. The stock has a low average ROCE of 13.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 109.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 179.08, 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 SP Apparels Ltd (SPAL):
    1. Net Profit Margin: 8.24%
      • 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: 16.49% (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%: 11.72% (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): 5.79
      • 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: 1.07
      • 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: 17.2 (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: 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 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

S P Apparels Ltd. is a Public Limited Listed company incorporated on 18/11/2005 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L18101TZ2005PLC012295 and registration number is 012295. Currently Company is involved in the business activities of Manufacture of all types of textile garments and clothing accessories. Company’s Total Operating Revenue is Rs. 735.09 Cr. and Equity Capital is Rs. 25.69 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Readymade ApparelsNo.39-A, Extension Street, Kaikattipudur, Tiruppur District Tamil Nadu 641654spindia@s-p-apparels.com
http://www.s-p-apparels.com
Management
NamePosition Held
Mr. P SundararajanChairman & Managing Director
Mrs. S ShanthaJoint Managing Director
Mr. S ChenduranJoint Managing Director
Mrs. S LathaExecutive Director
Mr. A S AnandkumarIndependent Director
Mr. C R RajagopalIndependent Director
Mrs. H Lakshmi PriyaIndependent Director
Mr. V SakthivelIndependent Director

FAQ

What is the latest fair value of SP Apparels Ltd (SPAL)?

The latest fair value of SP Apparels Ltd (SPAL) is ₹656.80.

What is the Market Cap of SP Apparels Ltd (SPAL)?

The Market Cap of SP Apparels Ltd (SPAL) is 1,545 Cr..

What is the current Stock Price of SP Apparels Ltd (SPAL) as on 20 June 2024?

The current stock price of SP Apparels Ltd (SPAL) as on 20 June 2024 is ₹616.

What is the High / Low of SP Apparels Ltd (SPAL) stocks in FY 2024?

In FY 2024, the High / Low of SP Apparels Ltd (SPAL) stocks is 710/414.

What is the Stock P/E of SP Apparels Ltd (SPAL)?

The Stock P/E of SP Apparels Ltd (SPAL) is 17.2.

What is the Book Value of SP Apparels Ltd (SPAL)?

The Book Value of SP Apparels Ltd (SPAL) is 304.

What is the Dividend Yield of SP Apparels Ltd (SPAL)?

The Dividend Yield of SP Apparels Ltd (SPAL) is 0.49 %.

What is the ROCE of SP Apparels Ltd (SPAL)?

The ROCE of SP Apparels Ltd (SPAL) is 14.6 %.

What is the ROE of SP Apparels Ltd (SPAL)?

The ROE of SP Apparels Ltd (SPAL) is 12.5 %.

What is the Face Value of SP Apparels Ltd (SPAL)?

The Face Value of SP Apparels Ltd (SPAL) 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 SP Apparels Ltd (SPAL). 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