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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Suryalakshmi Cotton Mills Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:34 pm

Market Cap 160 Cr.
Current Price 85.2
High / Low94.9/55.4
Stock P/E27.8
Book Value 141
Dividend Yield0.00 %
ROCE8.37 %
ROE2.18 %
Face Value 10.0
PEG Ratio0.33

Data Source: screener.in

Competitors of Suryalakshmi Cotton Mills Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Dhanalaxmi Roto Spinners Ltd 81.4 Cr. 209228/98.86.71 1260.72 %38.4 %28.4 % 10.0
Spentex Industries Ltd 25.1 Cr. 2.803.55/1.52 6.260.00 %75.2 %% 10.0
Bhilwara Spinners Ltd 112 Cr. 124160/45.1229 48.10.00 %1.13 %1.39 % 10.0
Axita Cotton Ltd 617 Cr. 23.735.4/19.230.4 2.480.32 %37.9 %34.8 % 1.00
Angel Fibers Ltd 65.0 Cr. 26.032.0/18.51,300 10.40.00 %4.78 %0.19 % 10.0
Industry Average4,127.94 Cr194.71123.24100.670.28%14.12%11.34%6.79

Nagreeka Exports Ltd Quarterly Results

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales188.68151.26184.78197.29244.75228.67220.23187.30214.84174.66184.52184.38238.62
Expenses172.18135.79166.84174.69221.55207.71205.72176.91198.99163.04172.14171.42221.09
Operating Profit16.5015.4717.9422.6023.2020.9614.5110.3915.8511.6212.3812.9617.53
OPM %8.74%10.23%9.71%11.46%9.48%9.17%6.59%5.55%7.38%6.65%6.71%7.03%7.35%
Other Income11.826.050.69-3.53-26.310.800.030.27-4.381.16-0.020.32-1.71
Interest9.146.666.665.105.856.435.965.806.307.226.897.468.39
Depreciation4.274.714.882.124.344.174.364.324.714.174.454.604.84
Profit before tax14.9110.157.0911.85-13.3011.164.220.540.461.391.021.222.59
Tax %39.10%32.81%40.48%34.94%-39.40%35.84%25.83%57.41%126.09%21.58%28.43%27.87%64.86%
Net Profit9.086.824.227.71-18.547.163.130.24-0.131.090.720.880.91
EPS in Rs5.454.092.534.62-9.863.811.660.13-0.070.580.380.470.48

Last Updated: July 14, 2024, 6:11 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 25, 2024, 10:54 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales726734705760777761665539486778851782
Expenses626664630663681696627526454698789728
Operating Profit1007075979665381332806254
OPM %14%10%11%13%12%9%6%2%7%10%7%7%
Other Income516913366314-24-4-0
Interest333734343839343332242430
Depreciation293232313129232216161818
Profit before tax42171844313-13-39-316166
Tax %28%31%34%32%36%-90%-33%-18%-5%99%37%42%
Net Profit30121230205-8-32-30104
EPS in Rs20.918.067.3018.0211.703.09-5.06-19.06-1.690.125.531.92
Dividend Payout %11%17%18%11%9%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222023-2024
YoY Net Profit Growth (%)-60.00%0.00%150.00%-33.33%-75.00%-260.00%-300.00%90.62%100.00%-60.00%
Change in YoY Net Profit Growth (%)0.00%60.00%150.00%-183.33%-41.67%-185.00%-40.00%390.62%9.38%-160.00%

Growth

Compounded Sales Growth
10 Years:1%
5 Years:3%
3 Years:17%
TTM:-8%
Compounded Profit Growth
10 Years:-3%
5 Years:22%
3 Years:34%
TTM:-62%
Stock Price CAGR
10 Years:-1%
5 Years:30%
3 Years:7%
1 Year:48%
Return on Equity
10 Years:1%
5 Years:-2%
3 Years:3%
Last Year:2%

Last Updated: July 25, 2024, 7:03 am

Balance Sheet

Last Updated: July 10, 2024, 10:21 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital161618181818181818212121
Reserves191290296310260259248215212229239245
Preference Capital02770101010101010
Borrowings348331296371370382345310303260191226
Other Liabilities102117133176161190168183154188203236
Total Liabilities657755744876809850779726688697654728
Fixed Assets361452419492408403380337322240245262
CWIP10103152122211
Investments500000000000
Other Assets291302315381385445397387363455407465
Total Assets657755744876809850779726688697654728

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 927778698729786533549919
Cash from Investing Activity -42-12-25-109-27-8-2818-8-3-25
Cash from Financing Activity -44-70-5239-62-22-75-70-45-49-98-0
Net Cash Flow7-51-1-3-1126-3-1-6

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-248.00-263.00-228.00-281.00-274.00-326.00-316.00-307.00-281.00-190.00-139.00-172.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days605554666285928397706084
Inventory Days9196124147162144115168146123102144
Days Payable394554837083761151049489133
Cash Conversion Cycle112106123129154146132136139997294
Working Capital Days817980939712912713213613493112
ROCE %14%8%8%12%10%6%3%-1%3%13%10%

Financial Efficiency Indicators Chart

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

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)1.925.530.13-1.69-19.06
Diluted EPS (Rs.)1.925.530.13-1.69-19.06
Cash EPS (Rs.)10.5313.597.909.43-5.29
Book Value[Excl.RevalReserv]/Share (Rs.)129.29127.82122.57126.71128.29
Book Value[Incl.RevalReserv]/Share (Rs.)129.29127.82122.57126.71128.29
Revenue From Operations / Share (Rs.)380.21413.57378.11263.40292.14
PBDIT / Share (Rs.)28.1533.0241.3320.0117.26
PBIT / Share (Rs.)19.3724.4933.539.055.32
PBT / Share (Rs.)3.029.0924.27-3.77-12.44
Net Profit / Share (Rs.)1.755.050.10-1.53-17.23
PBDIT Margin (%)7.407.9810.937.595.90
PBIT Margin (%)5.095.928.863.431.82
PBT Margin (%)0.792.196.41-1.42-4.25
Net Profit Margin (%)0.461.220.02-0.58-5.89
Return on Networth / Equity (%)1.353.950.08-1.20-13.42
Return on Capital Employeed (%)10.7014.1517.904.602.55
Return On Assets (%)0.491.590.03-0.41-4.37
Long Term Debt / Equity (X)0.250.190.370.380.45
Total Debt / Equity (X)0.840.721.031.111.22
Asset Turnover Ratio (%)1.131.261.120.680.71
Current Ratio (X)1.251.331.431.101.11
Quick Ratio (X)0.720.820.920.710.65
Inventory Turnover Ratio (X)2.853.563.411.922.25
Interest Coverage Ratio (X)1.932.773.511.060.97
Interest Coverage Ratio (Post Tax) (X)1.241.812.200.530.50
Enterprise Value (Cr.)350.96270.81413.96301.86308.69
EV / Net Operating Revenue (X)0.440.310.530.620.57
EV / EBITDA (X)6.063.994.878.189.69
MarketCap / Net Operating Revenue (X)0.170.110.200.110.04
Price / BV (X)0.500.360.640.230.11
Price / Net Operating Revenue (X)0.170.110.200.110.04
EarningsYield0.020.100.00-0.05-1.20

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 87.16

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: 2.30% compared to the current price 85.2

Intrinsic Value: 161.71

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: 89.80% compared to the current price 85.2

Last 5 Year EPS CAGR: 85.53%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (713.67 cr) and profit (11.50 cr) over the years.
  1. The stock has a low average ROCE of 7.17%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 107.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 120.17, which may not be favorable.
  4. The company has higher borrowings (317.25) compared to reserves (249.50), which may suggest financial risk.

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 Suryalakshmi Cotton Mills Ltd:
    1. Net Profit Margin: 0.46%
      • 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: 10.70% (Industry Average ROCE: 14.12%)
      • 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%: 1.35% (Industry Average ROE: 11.34%)
      • 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): 1.24
      • 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: 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.
    6. ✓ Stock P/E: 27.8 (Industry average Stock P/E: 123.24)
      • 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: 0.84
      • 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

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
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Management Data not Available

FAQ

What is the latest fair value of Suryalakshmi Cotton Mills Ltd?

The latest fair value of Suryalakshmi Cotton Mills Ltd is ₹87.16.

What is the Market Cap of Suryalakshmi Cotton Mills Ltd?

The Market Cap of Suryalakshmi Cotton Mills Ltd is 160 Cr..

What is the current Stock Price of Suryalakshmi Cotton Mills Ltd as on 25 July 2024?

The current stock price of Suryalakshmi Cotton Mills Ltd as on 25 July 2024 is 85.2.

What is the High / Low of Suryalakshmi Cotton Mills Ltd stocks in FY 2024?

In FY 2024, the High / Low of Suryalakshmi Cotton Mills Ltd stocks is 94.9/55.4.

What is the Stock P/E of Suryalakshmi Cotton Mills Ltd?

The Stock P/E of Suryalakshmi Cotton Mills Ltd is 27.8.

What is the Book Value of Suryalakshmi Cotton Mills Ltd?

The Book Value of Suryalakshmi Cotton Mills Ltd is 141.

What is the Dividend Yield of Suryalakshmi Cotton Mills Ltd?

The Dividend Yield of Suryalakshmi Cotton Mills Ltd is 0.00 %.

What is the ROCE of Suryalakshmi Cotton Mills Ltd?

The ROCE of Suryalakshmi Cotton Mills Ltd is 8.37 %.

What is the ROE of Suryalakshmi Cotton Mills Ltd?

The ROE of Suryalakshmi Cotton Mills Ltd is 2.18 %.

What is the Face Value of Suryalakshmi Cotton Mills Ltd?

The Face Value of Suryalakshmi Cotton Mills Ltd 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 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