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Last Updated on: 23 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sreeleathers Ltd – a Premier Leather Goods Manufacturer

About the Company - Sreeleathers Ltd

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.
INDUSTRYADDRESSCONTACT
Leather/Synthetic Products6, Tottee Lane, Kolkata West Bengal 700016sreeleathers@sreeleathers.com
http://www.sreeleathers.com
Management
NamePosition Held
Mr. Satyabrata DeyManaging Director
Mrs. Shipra DeyDirector
Ms. Rochita DeyDirector
Mr. Anil Chandra BeraIndependent Director
Mrs. Sadhana AdhikaryIndependent Director
Mr. Kalidas SarkarIndependent Director

Sreeleathers Ltd. Share Price Update

Share PriceValue
Today₹315.35
Previous Day₹323.85

Basic Stock Data of Sreeleathers Ltd

Market Cap 762 Cr.
Current Price 329
High / Low436/159
Stock P/E26.4
Book Value 171
Dividend Yield0.00 %
ROCE9.80 %
ROE7.23 %
Face Value 10.0

Data Source: screener.in

Competitors of Sreeleathers Ltd – a Premier Leather Goods Manufacturer

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mirza International Ltd 685 Cr. 49.674.0/29.952.0 39.60.00 %7.57 %4.59 % 2.00
Relaxo Footwears Ltd 20,828 Cr. 837974/748103 76.20.30 %11.8 %8.65 % 1.00
Superhouse Ltd 252 Cr. 228287/19416.1 4040.43 %8.20 %6.07 % 10.0
Bata India Ltd 18,174 Cr. 1,4141,771/1,38162.8 1090.94 %19.6 %19.8 % 5.00
Industry Average243.75 Cr278.958.48157.20.42%11.79%9.78%4.5

Sreeleathers Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales13.9132.5533.6512.4533.1141.1435.1644.9159.1247.3348.2949.6360.28
Expenses11.1725.2926.7610.6925.6232.4029.5937.1449.6238.3938.7840.5448.20
Operating Profit2.747.266.891.767.498.745.577.779.508.949.519.0912.08
OPM %19.70%22.30%20.48%14.14%22.62%21.24%15.84%17.30%16.07%18.89%19.69%18.32%20.04%
Other Income0.060.160.180.100.140.160.180.120.190.120.160.110.15
Interest0.000.000.310.080.090.090.190.100.110.110.130.120.14
Depreciation0.240.230.510.260.260.260.360.280.280.360.350.350.34
Profit before tax2.567.196.251.527.288.555.207.519.308.599.198.7311.75
Tax %21.48%25.59%26.24%26.97%25.82%25.73%29.04%25.43%26.02%25.49%26.77%25.77%25.79%
Net Profit2.005.354.611.115.406.353.685.606.886.416.736.488.73
EPS in Rs0.802.131.990.482.332.741.592.422.972.772.912.803.77

Sreeleathers Ltd Quarterly Chart

Sreeleathers Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales445357678010014116817383122200206
Expenses3743465464791091301336798164166
Operating Profit7101113162132384016243640
OPM %17%19%19%19%20%21%23%22%23%20%19%18%19%
Other Income0112312800111
Interest0011000000000
Depreciation1111111111111
Profit before tax7111012172133443915233538
Tax %34%31%33%32%35%35%34%30%26%26%27%26%
Net Profit5778111321312911172628
EPS in Rs2.932.813.364.495.338.5012.3611.434.817.1411.0612.25
Dividend Payout %11%9%9%0%0%0%0%0%0%0%0%0%

Sreeleathers Ltd Profit & Loss Yearly Chart

Sreeleathers Ltd Growth

Compounded Sales Growth
10 Years:14%
5 Years:7%
3 Years:5%
TTM:16%
Compounded Profit Growth
10 Years:14%
5 Years:5%
3 Years:-4%
TTM:28%
Stock Price CAGR
10 Years:1%
5 Years:9%
3 Years:31%
1 Year:86%
Return on Equity
10 Years:6%
5 Years:7%
3 Years:5%
Last Year:7%

Sreeleathers Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital25252525252525252523232323
Reserves149156162171182204230264299291314349374
Borrowings0000331103333
Other Liabilities792111121532261513141921
Total Liabilities182190208207222247288317339330355394421
Fixed Assets158158157160159158157151150152152151151
CWIP3440000000000
Investments6123029286477130167159182219242
Other Assets14161717352555362119212328
Total Assets182190208207222247288317339330355394421

Sreeleathers Ltd Reserves and Borrowings Chart

Sreeleathers Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 6720-1914281529111729
Cash from Investing Activity -4-5-183-6-16-4-32-3425-16-25
Cash from Financing Activity -1-1-2-2-0-0-0-20-33-1-1
Net Cash Flow11-0-02-224-18-5204

Sreeleathers Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days211915313111211
Inventory Days374140515350394443695335
Days Payable242625152225152122352619
Cash Conversion Cycle343429403228242322352817
Working Capital Days2223-5691216-11141221166
ROCE %4%6%6%6%8%9%13%14%13%5%7%10%

Sreeleathers Ltd Financial Efficiency Indicators Chart

Sreeleathers Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters72.17%72.29%72.29%72.31%74.62%74.91%74.91%75.00%75.00%75.00%75.00%75.00%
FIIs3.32%3.50%5.03%5.13%5.26%5.16%5.17%5.31%5.28%5.44%6.14%6.90%
DIIs0.21%0.21%0.22%0.22%0.21%0.21%0.21%0.00%0.00%0.00%0.00%0.00%
Public24.31%24.00%22.46%22.34%19.91%19.72%19.71%19.68%19.72%19.57%18.86%18.10%
No. of Shareholders6,3196,7757,7247,3527,4797,6308,1078,3898,5078,7358,4849,444

Sreeleathers Ltd Shareholding Pattern Chart

No. of Sreeleathers Ltd Shareholders

This stock is not held by any mutual fund

Sreeleathers Ltd ROCE Trend

Sreeleathers Ltd EPS Trend

Sreeleathers Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)11.067.144.8111.4312.36
Diluted EPS (Rs.)11.067.144.8211.4312.36
Cash EPS (Rs.)11.617.635.3411.8312.82
Book Value[Excl.RevalReserv]/Share (Rs.)160.59145.62135.35128.70115.04
Book Value[Incl.RevalReserv]/Share (Rs.)160.59145.62135.35128.70115.04
Revenue From Operations / Share (Rs.)86.2252.6335.9468.7966.65
PBDIT / Share (Rs.)15.6810.427.2015.9815.13
PBIT / Share (Rs.)15.149.936.6715.5814.66
PBT / Share (Rs.)14.949.736.5315.5417.57
Net Profit / Share (Rs.)11.067.144.8111.4312.36
PBDIT Margin (%)18.1919.7920.0323.2222.70
PBIT Margin (%)17.5518.8618.5522.6421.99
PBT Margin (%)17.3218.4918.1622.5926.36
Net Profit Margin (%)12.8313.5613.3716.6118.53
Return on Networth / Equity (%)6.884.903.558.8810.73
Return on Capital Employeed (%)9.186.644.8111.9512.58
Return On Assets (%)6.504.653.378.269.81
Asset Turnover Ratio (%)0.530.350.240.520.55
Current Ratio (X)1.912.382.041.511.52
Quick Ratio (X)0.720.920.790.800.90
Interest Coverage Ratio (X)80.1554.3951.85447.95301.66
Interest Coverage Ratio (Post Tax) (X)57.5438.2735.62321.56188.30
Enterprise Value (Cr.)383.81451.99340.27308.71575.00
EV / Net Operating Revenue (X)1.923.714.081.783.43
EV / EBITDA (X)10.5718.7320.377.6815.11
MarketCap / Net Operating Revenue (X)1.963.774.141.813.46
Price / BV (X)1.051.361.100.962.01
Price / Net Operating Revenue (X)1.963.774.141.813.46
EarningsYield0.060.030.030.090.05

Sreeleathers Ltd Profitability Ratios (%)

Sreeleathers Ltd Liquidity Ratios

Sreeleathers Ltd Liquidity Ratios (%)

Sreeleathers Ltd Interest Coverage Ratios (X)

Sreeleathers Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sreeleathers Ltd

Fair Value: ₹332.92

The stock is undervalued by 1.19% compared to the current price ₹329

*Investments are subject to market risks

Strength and Weakness of Sreeleathers Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 7.00, which is a positive sign.
  2. The company has higher reserves (241.92 cr) compared to borrowings (1.54 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (114.92 cr) and profit (23.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 12.40 and average Dividend Yield of 20.58%.
  2. The stock has a low average ROCE of 8.42%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 28.83, which may not be favorable.

Should I Buy Sreeleathers Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sreeleathers Ltd – a Premier Leather Goods Manufacturer:
    1. Net Profit Margin: 12.83%
      • 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: 9.18% (Industry Average ROCE: 11.79%)
      • 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): 57.54
      • 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: 0.72
      • 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: 26.4 (Industry average Stock P/E: 58.78)
      • 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: N/A
      • 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 Sreeleathers Ltd – a Premier Leather Goods Manufacturer. 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