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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sutlej Textiles and Industries Ltd

About the Company - Sutlej Textiles and Industries Ltd

Sutlej Textiles & Industries Ltd. is a Public Limited Listed company incorporated on 22/06/2005 and has its registered office in the State of Rajasthan, India. Company’s Corporate Identification Number(CIN) is L17124RJ2005PLC020927 and registration number is 020927. Currently Company is involved in the business activities of Preparation and spinning of man-made fiber including blended* man-made fiber. Company’s Total Operating Revenue is Rs. 3041.98 Cr. and Equity Capital is Rs. 16.38 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - GeneralPachpahar Road, Bhawanimandi Rajasthan 326502hoffice@Sutlejtextiles.com
http://www.sutlejtextiles.com
Management
NamePosition Held
Mr. C S NopanyExecutive Chairman
Mr. Rajib MukhopadhyayWholeTime Director & CFO
Mr. Rajan DalalDirector
Mr. Amit DalalDirector
Mr. Rajiv K PodarDirector
Mrs. Sonu BhasinDirector
Mr. Rohit DhootDirector
Mr. Ashok MittalDirector
Mr. U K KhaitanDirector

Sutlej Textiles & Industries Ltd. Share Price Update

Share PriceValue
Today₹57.75
Previous Day₹56.44

Basic Stock Data of Sutlej Textiles and Industries Ltd

Market Cap 1,077 Cr.
Current Price 65.8
High / Low73.4/38.0
Stock P/E
Book Value 68.6
Dividend Yield1.51 %
ROCE7.72 %
ROE4.07 %
Face Value 1.00

Data Source: screener.in

Competitors of Sutlej Textiles and Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shiva Mills Ltd 85.4 Cr. 98.8116/60.6 1130.00 %6.00 %6.85 % 10.0
Morarjee Textiles Ltd 83.6 Cr. 23.032.8/16.0 94.60.00 %21.8 %% 7.00
AKM Creations Ltd 71.6 Cr. 83.183.1/0.00256 25.00.00 %5.20 %3.56 % 10.0
Century Textiles & Industries Ltd 16,162 Cr. 1,4471,599/597119 3370.34 %6.32 %4.65 % 10.0
STL Global Ltd 47.8 Cr. 17.422.7/11.6 10.10.00 %1.78 %0.75 % 10.0
Industry Average3,290.08 Cr333.8675.00115.940.07%8.22%3.16%9.40

Sutlej Textiles and Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales460542671578779803882837810656736694726
Expenses440496597503681712758706722639708695760
Operating Profit204674759791124131881728-1-34
OPM %4%9%11%13%13%11%14%16%11%3%4%-0%-5%
Other Income871148101-1978-2865
Interest871012111115131314161817
Depreciation21262730303030313132323128
Profit before tax-22148376460806951-21-48-43-74
Tax %33%32%35%36%36%35%35%35%36%34%15%33%35%
Net Profit-11431244139524532-14-41-29-48
EPS in Rs-0.070.851.901.472.482.373.192.731.98-0.83-2.48-1.77-2.91

Sutlej Textiles and Industries Ltd Quarterly Chart

Sutlej Textiles and Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,5301,6721,8721,8672,0742,2492,4532,5622,3791,8613,0423,0392,812
Expenses1,3831,4761,6051,6351,8111,9672,2062,3422,2011,7462,6552,7752,802
Operating Profit14719726723226328224721917811538726410
OPM %10%12%14%12%13%13%10%9%7%6%13%9%0%
Other Income3232383935377528213122-31-8
Interest70655853464659574537495765
Depreciation69707570808510710110094120125123
Profit before tax409317214817318815790551524151-186
Tax %20%17%23%22%17%16%28%27%34%37%35%55%
Net Profit327713111514315811366361015623-131
EPS in Rs1.944.708.027.058.769.646.914.012.200.589.501.39-7.99
Dividend Payout %17%7%10%14%15%13%19%16%14%52%19%72%

Sutlej Textiles and Industries Ltd Profit & Loss Yearly Chart

Sutlej Textiles and Industries Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:4%
3 Years:9%
TTM:-13%
Compounded Profit Growth
10 Years:-6%
5 Years:-11%
3 Years:6%
TTM:-184%
Stock Price CAGR
10 Years:11%
5 Years:12%
3 Years:17%
1 Year:41%
Return on Equity
10 Years:12%
5 Years:6%
3 Years:7%
Last Year:4%

Sutlej Textiles and Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Equity Capital111116161616161616161616
Reserves2663384485446678008909309559641,1141,107
Borrowings7246526305988041,0361,047923868901938933
Other Liabilities144149178183188193228261279268374364
Total Liabilities1,1451,1491,2731,3411,6752,0452,1822,1312,1182,1492,4422,421
Fixed Assets5825405076438211,1281,1091,0541,0341,1891,1711,112
CWIP13556445611102017642169
Investments525353502628825731405427
Other Assets4985516566047728779819998758781,2011,274
Total Assets1,1451,1491,2731,3411,6752,0452,1822,1312,1182,1492,4422,421

Sutlej Textiles and Industries Ltd Reserves and Borrowings Chart

Sutlej Textiles and Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 231142159250272141158217320100101210
Cash from Investing Activity -81-2-75-172-346-299-55-10-205-100-89-115
Cash from Financing Activity -151-140-85-7974157-104-207-1135-18-93
Net Cash Flow-11-1-10-0-1026-61

Sutlej Textiles and Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days273130273739484340545339
Inventory Days108107122102130153132135126158138164
Days Payable121417162021252831393531
Cash Conversion Cycle122125135114147172155150135173156172
Working Capital Days6067716984981039679127108112
ROCE %11%16%22%18%16%14%9%8%6%3%15%8%

Sutlej Textiles and Industries Ltd Financial Efficiency Indicators Chart

Sutlej Textiles and Industries Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters63.90%63.90%63.96%63.96%63.96%63.96%63.96%63.96%63.96%63.96%63.96%63.96%
FIIs0.00%0.02%0.34%0.94%1.19%1.31%1.37%1.35%1.25%0.90%0.83%0.83%
DIIs0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%
Public36.08%36.06%35.68%35.08%34.83%34.71%34.64%34.67%34.76%35.12%35.18%35.20%
No. of Shareholders13,37416,29321,32223,29822,70623,28524,93124,91424,69524,77026,32528,876

Sutlej Textiles and Industries Ltd Shareholding Pattern Chart

No. of Sutlej Textiles and Industries Ltd Shareholders

This stock is not held by any mutual fund

Sutlej Textiles and Industries Ltd ROCE Trend

Sutlej Textiles and Industries Ltd EPS Trend

Sutlej Textiles and Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)2.289.17-0.221.693.56
Diluted EPS (Rs.)2.289.17-0.221.693.56
Cash EPS (Rs.)10.0216.565.617.869.71
Book Value[Excl.RevalReserv]/Share (Rs.)67.7367.1558.2858.5557.50
Book Value[Incl.RevalReserv]/Share (Rs.)67.7367.1558.2858.5557.50
Revenue From Operations / Share (Rs.)187.68187.82115.02147.54159.57
PBDIT / Share (Rs.)17.4725.298.2712.0614.64
PBIT / Share (Rs.)9.7217.912.435.898.49
PBT / Share (Rs.)3.9614.390.122.835.04
Net Profit / Share (Rs.)2.289.17-0.221.693.56
NP After MI And SOA / Share (Rs.)2.289.17-0.221.693.56
PBDIT Margin (%)9.3013.467.188.179.17
PBIT Margin (%)5.179.532.113.985.32
PBT Margin (%)2.117.660.111.913.15
Net Profit Margin (%)1.214.88-0.191.142.22
NP After MI And SOA Margin (%)1.214.88-0.191.142.22
Return on Networth / Equity (%)3.3613.65-0.382.886.18
Return on Capital Employeed (%)10.5318.732.716.429.67
Return On Assets (%)1.536.19-0.171.302.73
Long Term Debt / Equity (X)0.240.320.460.480.46
Total Debt / Equity (X)0.850.850.810.790.86
Asset Turnover Ratio (%)1.251.330.871.121.19
Current Ratio (X)1.321.391.311.391.45
Quick Ratio (X)0.490.670.610.620.63
Inventory Turnover Ratio (X)2.673.032.002.422.54
Dividend Payout Ratio (NP) (%)81.303.26-134.1538.4136.56
Dividend Payout Ratio (CP) (%)18.461.815.348.2613.39
Earning Retention Ratio (%)18.7096.74234.1561.5963.44
Cash Earning Retention Ratio (%)81.5498.1994.6691.7486.61
Interest Coverage Ratio (X)4.948.323.594.324.24
Interest Coverage Ratio (Post Tax) (X)2.274.180.901.702.03
Enterprise Value (Cr.)1604.412093.191412.101069.311454.49
EV / Net Operating Revenue (X)0.520.680.740.440.55
EV / EBITDA (X)5.615.0510.435.416.06
MarketCap / Net Operating Revenue (X)0.210.370.340.130.24
Retention Ratios (%)18.6996.73234.1561.5863.43
Price / BV (X)0.591.060.670.330.68
Price / Net Operating Revenue (X)0.210.370.340.130.24
EarningsYield0.050.12-0.010.080.09

Sutlej Textiles and Industries Ltd Profitability Ratios (%)

Sutlej Textiles and Industries Ltd Liquidity Ratios

Sutlej Textiles and Industries Ltd Liquidity Ratios (%)

Sutlej Textiles and Industries Ltd Interest Coverage Ratios (X)

Sutlej Textiles and Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sutlej Textiles and Industries Ltd

Fair Value: ₹42.51

The stock is overvalued by 35.39% compared to the current price ₹65.8

*Investments are subject to market risks

Strength and Weakness of Sutlej Textiles and Industries Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (1.77 cr) and profit (95.15 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 8.89 and average Dividend Yield of 5.22%.
  2. The stock has a low average ROCE of 12.17%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 89.50, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 146.33, which may not be favorable.
  5. The company has higher borrowings (837.83) compared to reserves (751.92), which may suggest financial risk.

Should I Buy Sutlej Textiles and Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sutlej Textiles and Industries Ltd:
    1. Net Profit Margin: 1.21%
      • 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: 10.53% (Industry Average ROCE: 4.15%)
      • 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): 2.27
      • 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: 0.49
      • 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 of N/A (Industry average Stock P/E: 31.32)
      • 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: 0.85
      • 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 Sutlej Textiles and Industries 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