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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of SP Apparels Ltd (SPAL)

About the Company - SP Apparels Ltd (SPAL)

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

S P Apparels Ltd. Share Price Update

Share PriceValue
Today₹553.10
Previous Day₹566.30

Basic Stock Data of SP Apparels Ltd (SPAL)

Market Cap 1,588 Cr.
Current Price 633
High / Low685/304
Stock P/E19.4
Book Value 287
Dividend Yield0.49 %
ROCE14.6 %
ROE12.6 %
Face Value 10.0

Data Source: screener.in

Competitors of SP Apparels Ltd (SPAL)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Pearl Global Industries Ltd 2,856 Cr. 656735/18818.3 1681.33 %19.2 %21.1 % 5.00
Globe Textiles (India) Ltd 62.0 Cr. 4.106.00/2.1011.9 3.790.00 %11.4 %8.58 % 2.00
Visagar Polytex Ltd 41.9 Cr. 1.432.12/0.68 0.550.00 %2.69 %7.86 % 1.00
Suumaya Industries Ltd 54.3 Cr. 8.6523.6/6.60 1110.00 %31.7 %47.2 % 10.0
SPL Industries Ltd 205 Cr. 70.680.8/53.317.8 66.60.00 %18.7 %13.6 % 10.0
Industry Average73.04 Cr148.169.669.990.27%16.74%19.67%5.6

SP Apparels Ltd (SPAL) Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales190210192133222250254246306251275248292
Expenses156171167105182212209203268229235212246
Operating Profit34392528403945433822403647
OPM %18%18%13%21%18%15%18%17%12%9%14%15%16%
Other Income0000145798246
Interest3423144582764
Depreciation888899910899910
Profit before tax23271517313037353019252538
Tax %19%26%30%31%25%18%31%27%25%32%19%40%26%
Net Profit19201112232525262313211529
EPS in Rs7.317.654.124.509.059.599.8010.068.925.288.215.9811.38

SP Apparels Ltd (SPAL) Quarterly Chart

SP Apparels Ltd (SPAL) Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3994254504715326326628258086528591,0781,066
Expenses339370386403447528555691724547707935922
Operating Profit605564698510410613484105152143145
OPM %15%13%14%15%16%16%16%16%10%16%18%13%14%
Other Income1017-122116313192319
Interest4034363125182962314121919
Depreciation16171820201922223032353637
Profit before tax5412242887711094459115111108
Tax %-97%51%46%60%33%38%33%33%-6%27%26%26%
Net Profit92610195448734743858377
EPS in Rs5.781.403.975.9810.9821.3019.0028.5618.2616.8032.9632.8830.85
Dividend Payout %0%0%0%0%0%0%3%0%0%13%0%9%

SP Apparels Ltd (SPAL) Profit & Loss Yearly Chart

SP Apparels Ltd (SPAL) Growth

Compounded Sales Growth
10 Years:10%
5 Years:10%
3 Years:10%
TTM:1%
Compounded Profit Growth
10 Years:44%
5 Years:12%
3 Years:14%
TTM:-21%
Stock Price CAGR
10 Years:%
5 Years:21%
3 Years:59%
1 Year:105%
Return on Equity
10 Years:13%
5 Years:12%
3 Years:12%
Last Year:13%

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

SP Apparels Ltd (SPAL) 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

SP Apparels Ltd (SPAL) 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%

SP Apparels Ltd (SPAL) 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

SP Apparels Ltd (SPAL) Shareholding Pattern Chart

No. of SP Apparels Ltd (SPAL) Shareholders

SP Apparels Ltd (SPAL) Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
DSP Small Cap Fund21004731130.68
UTI Aggressive Hybrid Fund4719400.5929.36
ICICI Prudential Smallcap Fund4273090.426.59
Franklin India Smaller Companies Fund2736000.1617.02
ICICI Prudential Equity & Debt Fund1931960.0412.02
UTI Retirement Fund1236040.197.69
ICICI Prudential Dividend Yield Equity Fund817310.185.08
LIC MF Small Cap Fund204730.641.24
LIC MF Long Term Value Fund161880.960.98

SP Apparels Ltd (SPAL) ROCE Trend

SP Apparels Ltd (SPAL) EPS Trend

SP Apparels Ltd (SPAL) Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)32.3732.9616.8018.2628.66
Diluted EPS (Rs.)32.3732.9616.8018.2628.66
Cash EPS (Rs.)47.2946.4229.3829.9136.96
Book Value[Excl.RevalReserv]/Share (Rs.)265.86245.69214.82201.15185.84
Book Value[Incl.RevalReserv]/Share (Rs.)265.86245.69214.82201.15185.84
Revenue From Operations / Share (Rs.)429.55334.50253.89314.86321.63
PBDIT / Share (Rs.)65.9762.7541.1541.5953.43
PBIT / Share (Rs.)51.5649.2928.5729.9445.03
PBT / Share (Rs.)44.1444.6823.0217.2842.60
Net Profit / Share (Rs.)32.8832.9616.8018.2628.56
NP After MI And SOA / Share (Rs.)32.8832.9916.8218.2728.58
PBDIT Margin (%)15.3518.7616.2013.2016.61
PBIT Margin (%)12.0014.7311.259.5013.99
PBT Margin (%)10.2713.359.065.4813.24
Net Profit Margin (%)7.659.856.615.798.87
NP After MI And SOA Margin (%)7.659.866.625.808.88
Return on Networth / Equity (%)12.2413.297.738.9715.17
Return on Capital Employeed (%)17.3316.9911.2812.5720.90
Return On Assets (%)7.527.984.745.268.28
Long Term Debt / Equity (X)0.010.050.090.110.05
Total Debt / Equity (X)0.320.310.320.410.41
Asset Turnover Ratio (%)0.990.760.640.850.91
Current Ratio (X)1.611.791.671.531.46
Quick Ratio (X)0.760.740.740.710.71
Inventory Turnover Ratio (X)1.131.110.761.011.25
Dividend Payout Ratio (NP) (%)0.000.000.000.001.74
Dividend Payout Ratio (CP) (%)0.000.000.000.001.35
Earning Retention Ratio (%)0.000.000.000.0098.26
Cash Earning Retention Ratio (%)0.000.000.000.0098.65
Interest Coverage Ratio (X)8.8913.607.414.6921.99
Interest Coverage Ratio (Post Tax) (X)5.438.154.023.4912.75
Enterprise Value (Cr.)951.041012.32529.17323.70958.56
EV / Net Operating Revenue (X)0.881.180.810.401.16
EV / EBITDA (X)5.756.285.013.036.98
MarketCap / Net Operating Revenue (X)0.741.020.600.190.99
Retention Ratios (%)0.000.000.000.0098.25
Price / BV (X)1.201.380.700.301.70
Price / Net Operating Revenue (X)0.741.020.600.190.99
EarningsYield0.100.090.100.290.08

SP Apparels Ltd (SPAL) Profitability Ratios (%)

SP Apparels Ltd (SPAL) Liquidity Ratios

SP Apparels Ltd (SPAL) Liquidity Ratios (%)

SP Apparels Ltd (SPAL) Interest Coverage Ratios (X)

SP Apparels Ltd (SPAL) Valuation Ratios

Fair Value / Intrinsic Value of SP Apparels Ltd (SPAL)

Fair Value: ₹704.98

The stock is undervalued by 11.37% compared to the current price ₹633

*Investments are subject to market risks

Strength and Weakness of SP Apparels Ltd (SPAL)

StrengthWeakness
  1. The company has higher reserves (341.46 cr) compared to borrowings (10.23 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (516.69 cr) and profit (59.77 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 40.88 and average Dividend Yield of 12.29%.
  2. The stock has a low average ROCE of 13.50%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 109.75, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 179.08, which may not be favorable.

Should I Buy SP Apparels Ltd (SPAL) Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in SP Apparels Ltd (SPAL):
    1. Net Profit Margin: 7.65%
      • 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: 17.33% (Industry Average ROCE: 26.88%)
      • 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): 5.43
      • 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: 0.76
      • 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: 18.4 (Industry average Stock P/E: 20.64)
      • 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: 0.32
      • 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 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