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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Suryalakshmi Cotton Mills Ltd

About the Company - Suryalakshmi Cotton Mills Ltd

Suryalakshmi Cotton Mills Ltd. is a Public Limited Listed company incorporated on 13/08/1962 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L17120TG1962PLC000923 and registration number is 000923. Currently company belongs to the Industry of Textiles - Spinning - Cotton Blended. Company’s Total Operating Revenue is Rs. 778.08 Cr. and Equity Capital is Rs. 20.58 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Cotton Blended6th Floor, Surya Towers, Secunderabad Telangana 500003cs@suryalakshmi.com
http://www.suryalakshmi.com
Management
NamePosition Held
Mr. L N AgarwalChairman & Managing Director
Mr. Paritosh K AgarwalManaging Director
Mr. R Surender ReddyDirector
Mr. Navrang Lal TibrewaDirector
Mr. R S AgarwalDirector
Mr. Dhruv Vijai SinghDirector
Ms. Aruna PrasadDirector
Mr. Rajan Ravindra ShuklaNominee Director

Suryalakshmi Cotton Mills Ltd. Share Price Update

Share PriceValue
Today₹78.70
Previous Day₹82.56

Basic Stock Data of Suryalakshmi Cotton Mills Ltd

Market Cap 152 Cr.
Current Price 80.6
High / Low89.5/43.4
Stock P/E18.4
Book Value 141
Dividend Yield0.00 %
ROCE10.3 %
ROE5.91 %
Face Value 10.0

Data Source: screener.in

Competitors of Suryalakshmi Cotton Mills Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shiva Texyarn Ltd 220 Cr. 170201/107 97.00.00 %%% 10.0
Pashupati Cotspin Ltd 156 Cr. 102128/90.042.3 72.30.73 %5.59 %3.74 % 10.0
Salona Cotspin Ltd 178 Cr. 338357/20221.2 1470.00 %13.8 %26.6 % 10.0
Nagreeka Exports Ltd 111 Cr. 35.644.9/15.611.5 36.70.00 %3.82 %2.92 % 5.00
Aananda Lakshmi Spinning Mills Ltd 7.92 Cr. 22.622.6/7.141.48 55.10.00 %33.8 %% 10.0
Industry Average134.58 Cr133.6415.381.620.15%11.4%6.65%9

Suryalakshmi Cotton Mills Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales99.06155.82188.68151.26184.78197.29244.75228.67220.23187.30214.84174.66184.52
Expenses95.36142.19172.18135.79166.84174.69221.55207.71205.72176.91198.99163.04172.14
Operating Profit3.7013.6316.5015.4717.9422.6023.2020.9614.5110.3915.8511.6212.38
OPM %3.74%8.75%8.74%10.23%9.71%11.46%9.48%9.17%6.59%5.55%7.38%6.65%6.71%
Other Income7.270.1611.826.050.69-3.53-26.310.800.030.27-4.381.16-0.02
Interest8.788.379.146.666.665.105.856.435.965.806.307.226.89
Depreciation5.034.984.274.714.882.124.344.174.364.324.714.174.45
Profit before tax-2.840.4414.9110.157.0911.85-13.3011.164.220.540.461.391.02
Tax %101.76%65.91%39.10%32.81%40.48%34.94%-39.40%35.84%25.83%57.41%126.09%21.58%28.43%
Net Profit0.050.159.086.824.227.71-18.547.163.130.24-0.131.090.72
EPS in Rs0.030.095.454.092.534.62-9.863.811.660.13-0.070.580.38

Suryalakshmi Cotton Mills Ltd Quarterly Chart

Suryalakshmi Cotton Mills Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales669726734705760777761665539486778851761
Expenses586626664630663681696627526454698789711
Operating Profit831007075979665381332806250
OPM %12%14%10%11%13%12%9%6%2%7%10%7%7%
Other Income9516913366314-24-4-3
Interest30333734343839343332242426
Depreciation25293232313129232216161818
Profit before tax3842171844313-13-39-316163
Tax %26%28%31%34%32%36%-90%33%18%5%99%37%
Net Profit2830121230205-8-32-30102
EPS in Rs19.4920.918.067.3018.0211.703.09-5.06-19.06-1.690.125.531.02
Dividend Payout %12%11%17%18%11%9%-0%-0%-0%-0%-0%-0%

Suryalakshmi Cotton Mills Ltd Profit & Loss Yearly Chart

Suryalakshmi Cotton Mills Ltd Growth

Compounded Sales Growth
10 Years:2%
5 Years:2%
3 Years:16%
TTM:-15%
Compounded Profit Growth
10 Years:-7%
5 Years:34%
3 Years:35%
TTM:-77%
Stock Price CAGR
10 Years:6%
5 Years:19%
3 Years:42%
1 Year:47%
Return on Equity
10 Years:1%
5 Years:-3%
3 Years:0%
Last Year:6%

Suryalakshmi Cotton Mills Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital14161618181818181818212121
Reserves164191290296310260259248215212229239244
Preference Capital7-0277-0101010101010
Borrowings350348331296371370382345310303260191233
Other Liabilities97102117133176161190168183154188203180
Total Liabilities624657755744876809850779726688697654678
Fixed Assets256361452419492408403380337322240245266
CWIP9010103152122210
Investments8500000000000
Other Assets271291302315381385445397387363455407411
Total Assets624657755744876809850779726688697654678

Suryalakshmi Cotton Mills Ltd Reserves and Borrowings Chart

Suryalakshmi Cotton Mills Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 799277786987297865335499
Cash from Investing Activity -118-42-12-25-109-27-8-2818-8-3
Cash from Financing Activity 36-44-70-5239-62-22-75-70-45-49-98
Net Cash Flow-47-51-1-3-1126-3-1

Suryalakshmi Cotton Mills Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days576055546662859283977060
Inventory Days909196124147162144115168146123102
Days Payable31394554837083761151049489
Cash Conversion Cycle1161121061231291541461321361399972
Working Capital Days88817980939712912713213613493
ROCE %14%14%8%8%12%10%6%3%-1%3%13%10%

Suryalakshmi Cotton Mills Ltd Financial Efficiency Indicators Chart

Suryalakshmi Cotton Mills Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters55.94%55.94%55.94%55.94%60.94%60.94%60.94%60.94%60.94%60.94%60.94%60.93%
DIIs0.40%0.40%0.40%0.40%0.36%0.36%0.35%0.35%0.35%0.35%0.35%0.35%
Public43.65%43.65%43.65%43.65%38.70%38.70%38.69%38.69%38.69%38.70%38.69%38.70%
No. of Shareholders7,4347,4297,7798,0688,6718,6618,7418,9739,1368,8598,7789,204

Suryalakshmi Cotton Mills Ltd Shareholding Pattern Chart

No. of Suryalakshmi Cotton Mills Ltd Shareholders

This stock is not held by any mutual fund

Suryalakshmi Cotton Mills Ltd ROCE Trend

Suryalakshmi Cotton Mills Ltd EPS Trend

Suryalakshmi Cotton Mills Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)5.530.13-1.69-19.06-5.06
Diluted EPS (Rs.)5.530.13-1.69-19.06-5.06
Cash EPS (Rs.)13.597.909.43-5.297.88
Book Value[Excl.RevalReserv]/Share (Rs.)127.82122.57126.71128.29146.23
Book Value[Incl.RevalReserv]/Share (Rs.)127.82122.57126.71128.29146.23
Revenue From Operations / Share (Rs.)413.57378.11263.40292.14360.72
PBDIT / Share (Rs.)33.0241.3320.0117.2625.96
PBIT / Share (Rs.)24.4933.539.055.3213.51
PBT / Share (Rs.)9.0924.27-3.77-12.44-4.84
Net Profit / Share (Rs.)5.050.10-1.53-17.23-4.57
PBDIT Margin (%)7.9810.937.595.907.19
PBIT Margin (%)5.928.863.431.823.74
PBT Margin (%)2.196.41-1.42-4.25-1.34
Net Profit Margin (%)1.220.02-0.58-5.89-1.26
Return on Networth / Equity (%)3.950.08-1.20-13.42-3.12
Return on Capital Employeed (%)14.1517.904.602.555.67
Return On Assets (%)1.590.03-0.41-4.37-1.08
Long Term Debt / Equity (X)0.190.370.380.450.44
Total Debt / Equity (X)0.721.031.111.221.18
Asset Turnover Ratio (%)1.261.120.680.710.81
Current Ratio (X)1.331.431.101.111.13
Quick Ratio (X)0.820.920.710.650.74
Inventory Turnover Ratio (X)3.563.411.922.252.39
Interest Coverage Ratio (X)2.773.511.060.971.41
Interest Coverage Ratio (Post Tax) (X)1.812.200.530.500.85
Enterprise Value (Cr.)270.81413.96301.86308.69365.83
EV / Net Operating Revenue (X)0.310.530.620.570.54
EV / EBITDA (X)3.994.878.189.697.64
MarketCap / Net Operating Revenue (X)0.110.200.110.040.08
Price / BV (X)0.360.640.230.110.20
Price / Net Operating Revenue (X)0.110.200.110.040.08
EarningsYield0.100.00-0.05-1.20-0.15

Suryalakshmi Cotton Mills Ltd Profitability Ratios (%)

Suryalakshmi Cotton Mills Ltd Liquidity Ratios

Suryalakshmi Cotton Mills Ltd Liquidity Ratios (%)

Suryalakshmi Cotton Mills Ltd Interest Coverage Ratios (X)

Suryalakshmi Cotton Mills Ltd Valuation Ratios

Fair Value / Intrinsic Value of Suryalakshmi Cotton Mills Ltd

Fair Value: ₹156.40

The stock is undervalued by 94.04% compared to the current price ₹80.6

*Investments are subject to market risks

Strength and Weakness of Suryalakshmi Cotton Mills Ltd

StrengthWeakness
  1. The company has higher reserves (242.85 cr) compared to borrowings (6.38 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (708.62 cr) and profit (13.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 17.18 and average Dividend Yield of 0.32%.
  2. The stock has a low average ROCE of 8.33%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 105.75, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 122.00, which may not be favorable.

Should I Buy Suryalakshmi Cotton Mills Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Suryalakshmi Cotton Mills Ltd:
    1. Net Profit Margin: 1.22%
      • 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: 14.15% (Industry Average ROCE: 12.24%)
      • 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): 1.81
      • 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: 0.82
      • 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: 18.1 (Industry average Stock P/E: 12.52)
      • 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: 0.72
      • 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 Suryalakshmi Cotton Mills 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