Sreeleathers Ltd – a Premier Leather Goods Manufacturer: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 23, 2024, 10:09 pm

Market Cap	578 Cr.
Current Price	252
High / Low	436/230
Stock P/E	25.4
Book Value	190
Dividend Yield	0.00 %
ROCE	9.29 %
ROE	6.80 %
Face Value	10.0
PEG Ratio	1.45

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Sreeleathers Ltd - a Premier Leather Goods Manufacturer

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
NB Footwear Ltd	23.0 Cr.	17.1	20.9/5.66		1.09	0.00 %	%	%	10.0
Euro Leder Fashion Ltd	12.2 Cr.	27.4	33.7/17.6	153	32.2	0.00 %	6.05 %	2.31 %	10.0
Billwin Industries Ltd	15.5 Cr.	37.0	70.1/34.8	23.1	33.1	0.00 %	13.4 %	12.8 %	10.0
Anka India Ltd	28.7 Cr.	18.6	22.0/9.25		5.36	0.00 %	%	%	10.0
Amin Tannery Ltd	27.8 Cr.	2.58	3.09/1.96	92.8	1.17	0.00 %	5.03 %	2.92 %	1.00
Industry Average	843.50 Cr	208.39		340.56	126.90	0.08%	7.85%	4.96%	8.00

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	12.45	33.11	41.14	35.16	44.91	59.12	47.33	48.29	49.63	60.28	58.16	49.60	48.69
Expenses	10.69	25.62	32.40	29.59	37.14	49.62	38.39	38.78	40.54	48.20	48.49	42.86	42.01
Operating Profit	1.76	7.49	8.74	5.57	7.77	9.50	8.94	9.51	9.09	12.08	9.67	6.74	6.68
OPM %	14.14%	22.62%	21.24%	15.84%	17.30%	16.07%	18.89%	19.69%	18.32%	20.04%	16.63%	13.59%	13.72%
Other Income	0.10	0.14	0.16	0.18	0.12	0.19	0.12	0.16	0.11	0.15	0.15	0.16	0.10
Interest	0.08	0.09	0.09	0.19	0.10	0.11	0.11	0.13	0.12	0.14	0.16	0.16	0.14
Depreciation	0.26	0.26	0.26	0.36	0.28	0.28	0.36	0.35	0.35	0.34	0.34	0.15	0.30
Profit before tax	1.52	7.28	8.55	5.20	7.51	9.30	8.59	9.19	8.73	11.75	9.32	6.59	6.34
Tax %	26.97%	25.82%	25.73%	29.04%	25.43%	26.02%	25.49%	26.77%	25.77%	25.79%	26.39%	27.47%	27.44%
Net Profit	1.11	5.40	6.35	3.68	5.60	6.88	6.41	6.73	6.48	8.73	6.86	4.78	4.61
EPS in Rs	0.48	2.33	2.74	1.59	2.42	2.97	2.77	2.91	2.80	3.77	2.96	2.06	1.99

Last Updated: October 15, 2024, 4:43 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 15, 2024, 4:43 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	53	57	67	80	100	141	168	173	83	122	198	215	217
Expenses	43	46	54	64	79	109	130	133	67	98	162	178	182
Operating Profit	10	11	13	16	21	32	38	40	16	24	36	38	35
OPM %	19%	19%	19%	20%	21%	23%	22%	23%	20%	19%	18%	17%	16%
Other Income	1	1	2	3	1	2	8	0	0	1	1	1	1
Interest	0	1	1	0	0	0	0	0	0	0	0	1	1
Depreciation	1	1	1	1	1	1	1	1	1	1	1	1	1
Profit before tax	11	10	12	17	21	33	44	39	15	23	35	36	34
Tax %	31%	33%	32%	35%	35%	34%	30%	26%	26%	27%	26%	26%
Net Profit	7	7	8	11	13	21	31	29	11	17	26	27	25
EPS in Rs	2.93	2.81	3.36	4.49	5.33	8.50	12.36	11.43	4.81	7.14	11.06	11.60	10.78
Dividend Payout %	9%	9%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	0.00%	14.29%	37.50%	18.18%	61.54%	47.62%	-6.45%	-62.07%	54.55%	52.94%	3.85%
Change in YoY Net Profit Growth (%)	0.00%	14.29%	23.21%	-19.32%	43.36%	-13.92%	-54.07%	-55.62%	116.61%	-1.60%	-49.10%

Sreeleathers Ltd - a Premier Leather Goods Manufacturer has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	14%
5 Years:	5%
3 Years:	37%
TTM:	7%

Compounded Profit Growth
10 Years:	15%
5 Years:	1%
3 Years:	34%
TTM:	-20%

Stock Price CAGR
10 Years:	-1%
5 Years:	9%
3 Years:	14%
1 Year:	-33%

Return on Equity
10 Years:	7%
5 Years:	6%
3 Years:	6%
Last Year:	7%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:43 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	25	25	25	25	25	25	25	25	23	23	23	23	23
Reserves	156	162	171	182	204	230	264	299	291	314	349	394	417
Borrowings	0	0	0	3	3	1	1	0	3	3	3	3	3
Other Liabilities	9	21	11	12	15	32	26	15	13	14	19	19	22
Total Liabilities	190	208	207	222	247	288	317	339	330	355	394	439	465
Fixed Assets	158	157	160	159	158	157	151	150	152	152	151	151	152
CWIP	4	4	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Investments	12	30	29	28	64	77	130	167	159	182	219	264	286
Other Assets	16	17	17	35	25	55	36	21	19	21	23	24	26
Total Assets	190	208	207	222	247	288	317	339	330	355	394	439	465

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	7	20	-1	9	14	28	15	29	11	17	29	30
Cash from Investing Activity +	-5	-18	3	-6	-16	-4	-32	-34	25	-16	-25	-30
Cash from Financing Activity +	-1	-2	-2	-0	-0	-0	-2	0	-33	-1	-1	-1
Net Cash Flow	1	-0	-0	2	-2	24	-18	-5	2	0	4	-1

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	10.00	11.00	13.00	13.00	18.00	31.00	37.00	40.00	13.00	21.00	33.00	35.00

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	19	15	3	1	3	1	1	1	2	1	1	1
Inventory Days	41	40	51	53	50	39	44	43	69	53	35	28
Days Payable	26	25	15	22	25	15	21	22	35	26	19	18
Cash Conversion Cycle	34	29	40	32	28	24	23	22	35	28	17	11
Working Capital Days	23	-56	9	12	16	-11	14	12	21	16	6	4
ROCE %	6%	6%	6%	8%	9%	13%	14%	13%	5%	7%	10%	9%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	72.29%	72.31%	74.62%	74.91%	74.91%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%
FIIs	5.03%	5.13%	5.26%	5.16%	5.17%	5.31%	5.28%	5.44%	6.14%	6.90%	6.92%	6.90%
DIIs	0.22%	0.22%	0.21%	0.21%	0.21%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Public	22.46%	22.34%	19.91%	19.72%	19.71%	19.68%	19.72%	19.57%	18.86%	18.10%	18.08%	18.10%
No. of Shareholders	7,724	7,352	7,479	7,630	8,107	8,389	8,507	8,735	8,484	9,444	10,095	10,377

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	11.59	11.06	7.14	4.81	11.43
Diluted EPS (Rs.)	11.59	11.06	7.14	4.82	11.43
Cash EPS (Rs.)	12.10	11.61	7.63	5.34	11.83
Book Value[Excl.RevalReserv]/Share (Rs.)	180.31	160.59	145.62	135.35	128.70
Book Value[Incl.RevalReserv]/Share (Rs.)	180.31	160.59	145.62	135.35	128.70
Revenue From Operations / Share (Rs.)	94.01	86.22	52.63	35.94	68.79
PBDIT / Share (Rs.)	16.47	15.68	10.42	7.20	15.98
PBIT / Share (Rs.)	15.96	15.14	9.93	6.67	15.58
PBT / Share (Rs.)	15.71	14.94	9.73	6.53	15.54
Net Profit / Share (Rs.)	11.59	11.06	7.14	4.81	11.43
PBDIT Margin (%)	17.51	18.19	19.79	20.03	23.22
PBIT Margin (%)	16.97	17.55	18.86	18.55	22.64
PBT Margin (%)	16.71	17.32	18.49	18.16	22.59
Net Profit Margin (%)	12.33	12.83	13.56	13.37	16.61
Return on Networth / Equity (%)	6.42	6.88	4.90	3.55	8.88
Return on Capital Employeed (%)	8.63	9.18	6.64	4.81	11.95
Return On Assets (%)	6.11	6.50	4.65	3.37	8.26
Asset Turnover Ratio (%)	0.52	0.53	0.35	0.24	0.52
Current Ratio (X)	2.10	1.91	2.38	2.04	1.51
Quick Ratio (X)	1.01	0.72	0.92	0.79	0.80
Interest Coverage Ratio (X)	66.86	80.15	54.39	51.85	447.95
Interest Coverage Ratio (Post Tax) (X)	48.06	57.54	38.27	35.62	321.56
Enterprise Value (Cr.)	638.39	383.81	451.99	340.27	308.71
EV / Net Operating Revenue (X)	2.93	1.92	3.71	4.08	1.78
EV / EBITDA (X)	16.74	10.57	18.73	20.37	7.68
MarketCap / Net Operating Revenue (X)	2.98	1.96	3.77	4.14	1.81
Price / BV (X)	1.55	1.05	1.36	1.10	0.96
Price / Net Operating Revenue (X)	2.98	1.96	3.77	4.14	1.81
EarningsYield	0.04	0.06	0.03	0.03	0.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sreeleathers Ltd - a Premier Leather Goods Manufacturer as of December 24, 2024 is: 334.73

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.

As of December 24, 2024, Sreeleathers Ltd - a Premier Leather Goods Manufacturer is Undervalued by 32.83% compared to the current share price 252.00

Intrinsic Value of Sreeleathers Ltd - a Premier Leather Goods Manufacturer as of December 24, 2024 is: 393.36

Calculation basis:

Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 24, 2024, Sreeleathers Ltd - a Premier Leather Goods Manufacturer is Undervalued by 56.10% compared to the current share price 252.00

Last 5 Year EPS CAGR: 17.52%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of 5.50, which is a positive sign. The company has higher reserves (264.08 cr) compared to borrowings (1.77 cr), indicating strong financial stability. The company has shown consistent growth in sales (128.77 cr) and profit (25.38 cr) over the years.	The stock has a low average ROCE of 8.83%, which may not be favorable. The stock has a high average Cash Conversion Cycle of 26.92, 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 Sreeleathers Ltd - a Premier Leather Goods Manufacturer:
1. Net Profit Margin: 12.33%
  - 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: 8.63% (Industry Average ROCE: 6.42%)
  - 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%: 6.42% (Industry Average ROE: 4.06%)
  - 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): 48.06
  - 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: 1.01
  - 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: 25.4 (Industry average Stock P/E: 247.68)
  - 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
  - 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 - Qualitative Analysis

Sreeleathers Ltd. is a Public Limited Listed company incorporated on 14/01/1991 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L67190WB1991PLC050656 and registration number is 050656. Currently company belongs to the Industry of Leather/Synthetic Products. Company’s Total Operating Revenue is Rs. 121.86 Cr. and Equity Capital is Rs. 23.16 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Footwears	6, Tottee Lane, Kolkata West Bengal 700016	sreeleathers@sreeleathers.com http://www.sreeleathers.com

Management
Name	Position Held
Mr. Satyabrata Dey	Managing Director
Mrs. Shipra Dey	Executive Director
Ms. Rochita Dey	Executive Director
Mr. Anil Chandra Bera	Independent Director
Mrs. Sadhana Adhikary	Independent Director
Mr. Kalidas Sarkar	Independent Director

FAQ

What is the latest intrinsic value of Sreeleathers Ltd - a Premier Leather Goods Manufacturer?

The latest intrinsic value of Sreeleathers Ltd - a Premier Leather Goods Manufacturer as on 24 December 2024 is ₹334.73, which is 32.83% higher than the current market price of ₹252.00. The stock has a market capitalization of 578 Cr. and recorded a high/low of 436/230 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹417 Cr and total liabilities of ₹465 Cr.

What is the Market Cap of Sreeleathers Ltd - a Premier Leather Goods Manufacturer?

The Market Cap of Sreeleathers Ltd - a Premier Leather Goods Manufacturer is 578 Cr..

What is the current Stock Price of Sreeleathers Ltd - a Premier Leather Goods Manufacturer as on 24 December 2024?

The current stock price of Sreeleathers Ltd - a Premier Leather Goods Manufacturer as on 24 December 2024 is 252.

What is the High / Low of Sreeleathers Ltd - a Premier Leather Goods Manufacturer stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Sreeleathers Ltd - a Premier Leather Goods Manufacturer stocks is 436/230.

What is the Stock P/E of Sreeleathers Ltd - a Premier Leather Goods Manufacturer?

The Stock P/E of Sreeleathers Ltd - a Premier Leather Goods Manufacturer is 25.4.

What is the Book Value of Sreeleathers Ltd - a Premier Leather Goods Manufacturer?

The Book Value of Sreeleathers Ltd - a Premier Leather Goods Manufacturer is 190.

What is the Dividend Yield of Sreeleathers Ltd - a Premier Leather Goods Manufacturer?

The Dividend Yield of Sreeleathers Ltd - a Premier Leather Goods Manufacturer is 0.00 %.

What is the ROCE of Sreeleathers Ltd - a Premier Leather Goods Manufacturer?

The ROCE of Sreeleathers Ltd - a Premier Leather Goods Manufacturer is 9.29 %.

What is the ROE of Sreeleathers Ltd - a Premier Leather Goods Manufacturer?

The ROE of Sreeleathers Ltd - a Premier Leather Goods Manufacturer is 6.80 %.

What is the Face Value of Sreeleathers Ltd - a Premier Leather Goods Manufacturer?

The Face Value of Sreeleathers Ltd - a Premier Leather Goods Manufacturer is 10.0.