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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sutlej Textiles and Industries Ltd

Basic Stock Data

Last Updated: June 12, 2024, 11:20 am

Market Cap 951 Cr.
Current Price 58.1
High / Low73.4/44.5
Stock P/E
Book Value 59.6
Dividend Yield1.73 %
ROCE6.25 %
ROE11.0 %
Face Value 1.00
PEG Ratio0.00

Competitors of Sutlej Textiles and Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Betex India Ltd 36.5 Cr. 243353/10611.0 2140.00 %17.2 %11.0 % 10.0
CIL Nova Petrochemicals Ltd 94.8 Cr. 35.040.0/15.6 32.80.00 %3.35 %3.68 % 10.0
Bharat Textiles & Proofing Industries Ltd 6.58 Cr. 11.211.2/6.6147.0 3.160.00 %6.66 %7.89 % 10.0
AKM Creations Ltd 138 Cr. 111117/0.00532 17.60.00 %1.57 %1.78 % 10.0
STL Global Ltd 47.0 Cr. 17.122.7/11.8 9.800.00 %4.27 %9.16 % 10.0
Industry Average2,482.86 Cr260.8762.1069.450.02%9.50%38.64%8.07

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales671578779803882837810656736694726601650
Expenses597503681712758706722639708695760605641
Operating Profit74759791124131881728-1-34-39
OPM %11%13%13%11%14%16%11%3%4%-0%-5%-1%1%
Other Income1148101-1978-28654-10
Interest10121111151313141618171415
Depreciation27303030303131323231282927
Profit before tax48376460806951-21-48-43-74-41-44
Tax %35%36%36%35%35%35%36%34%15%33%35%35%30%
Net Profit31244139524532-14-41-29-48-27-31
EPS in Rs1.901.472.482.373.192.731.98-0.83-2.48-1.77-2.91-1.65-1.88

Last Updated: June 10, 2024, 4:51 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:10 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,6721,8721,8672,0742,2492,4532,5622,3791,8613,0423,0392,672
Expenses1,4761,6051,6351,8111,9672,2062,3422,2011,7462,6552,7752,701
Operating Profit197267232263282247219178115387264-29
OPM %12%14%12%13%13%10%9%7%6%13%9%-1%
Other Income32383935377528213122-315
Interest655853464659574537495763
Depreciation707570808510710110094120125115
Profit before tax9317214817318815790551524151-203
Tax %17%23%22%17%16%28%27%34%37%35%55%34%
Net Profit7713111514315811366361015623-135
EPS in Rs4.708.027.058.769.646.914.012.200.589.501.39-8.22
Dividend Payout %7%10%14%15%13%19%16%14%52%19%72%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)70.13%-12.21%24.35%10.49%-28.48%-41.59%-45.45%-72.22%1460.00%-85.26%-686.96%
Change in YoY Net Profit Growth (%)0.00%-82.34%36.56%-13.86%-38.97%-13.11%-3.86%-26.77%1532.22%-1545.26%-601.70%

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:10%
5 Years:8%
3 Years:12%
1 Year:27%
Return on Equity
10 Years:12%
5 Years:6%
3 Years:7%
Last Year:4%

Last Updated: April 13, 2024, 9:20 am

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

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

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-455.00-363.00-366.00-541.00281.00246.00-704.00-690.00-786.00-551.00-669.00-854.00

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 Days313027373948434054533947
Inventory Days107122102130153132135126158138164108
Days Payable141716202125283139353133
Cash Conversion Cycle125135114147172155150135173156172122
Working Capital Days67716984981039679127108112101
ROCE %16%22%18%16%14%9%8%6%3%15%8%

Financial Efficiency Indicators Chart

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

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
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)-8.272.289.17-0.221.69
Diluted EPS (Rs.)-8.272.289.17-0.221.69
Cash EPS (Rs.)-1.1310.0216.565.617.86
Book Value[Excl.RevalReserv]/Share (Rs.)58.6867.7367.1558.2858.55
Book Value[Incl.RevalReserv]/Share (Rs.)58.6867.7367.1558.2858.55
Revenue From Operations / Share (Rs.)165.03187.68187.82115.02147.54
PBDIT / Share (Rs.)-0.8017.4725.298.2712.06
PBIT / Share (Rs.)-7.959.7217.912.435.89
PBT / Share (Rs.)-12.433.9614.390.122.83
Net Profit / Share (Rs.)-8.282.289.17-0.221.69
NP After MI And SOA / Share (Rs.)-8.282.289.17-0.221.69
PBDIT Margin (%)-0.489.3013.467.188.17
PBIT Margin (%)-4.815.179.532.113.98
PBT Margin (%)-7.532.117.660.111.91
Net Profit Margin (%)-5.011.214.88-0.191.14
NP After MI And SOA Margin (%)-5.011.214.88-0.191.14
Return on Networth / Equity (%)-14.103.3613.65-0.382.88
Return on Capital Employeed (%)-10.0610.5318.732.716.42
Return On Assets (%)-6.421.536.19-0.171.30
Long Term Debt / Equity (X)0.280.240.320.460.48
Total Debt / Equity (X)0.870.850.850.810.79
Asset Turnover Ratio (%)1.191.251.330.871.12
Current Ratio (X)1.241.321.391.311.39
Quick Ratio (X)0.600.490.670.610.62
Inventory Turnover Ratio (X)2.262.673.032.002.42
Dividend Payout Ratio (NP) (%)0.0081.303.26-134.1538.41
Dividend Payout Ratio (CP) (%)0.0018.461.815.348.26
Earning Retention Ratio (%)0.0018.7096.74234.1561.59
Cash Earning Retention Ratio (%)0.0081.5498.1994.6691.74
Interest Coverage Ratio (X)-0.204.948.323.594.32
Interest Coverage Ratio (Post Tax) (X)-0.952.274.180.901.70
Enterprise Value (Cr.)1664.301604.412093.191412.101069.31
EV / Net Operating Revenue (X)0.610.520.680.740.44
EV / EBITDA (X)-126.955.615.0510.435.41
MarketCap / Net Operating Revenue (X)0.300.210.370.340.13
Retention Ratios (%)0.0018.6996.73234.1561.58
Price / BV (X)0.850.591.060.670.33
Price / Net Operating Revenue (X)0.300.210.370.340.13
EarningsYield-0.160.050.12-0.010.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 100.04

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: 72.19% compared to the current price 58.1

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: 61.47

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: 5.80% compared to the current price ₹58.1

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -38.56%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (1.83 cr) and profit (98.33 cr) over the years.
  1. The stock has a low average ROCE of 11.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 92.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 146.33, which may not be favorable.
  4. The company has higher borrowings (846.25) compared to reserves (809.75), 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 Sutlej Textiles and Industries Ltd:
    1. Net Profit Margin: -5.01%
      • 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: -10.06% (Industry Average ROCE: %)
      • 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%: -14.10% (Industry Average ROE: %)
      • 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): -0.95
      • 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: 0.60
      • 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: (Industry average Stock P/E: )
      • 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: 0.87
      • 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

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

FAQ

What is the latest fair value of Sutlej Textiles and Industries Ltd?

The latest fair value of Sutlej Textiles and Industries Ltd is ₹100.04.

What is the Market Cap of Sutlej Textiles and Industries Ltd?

The Market Cap of Sutlej Textiles and Industries Ltd is 951 Cr..

What is the current Stock Price of Sutlej Textiles and Industries Ltd as on 21 June 2024?

The current stock price of Sutlej Textiles and Industries Ltd as on 21 June 2024 is ₹58.1.

What is the High / Low of Sutlej Textiles and Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sutlej Textiles and Industries Ltd stocks is 73.4/44.5.

What is the Stock P/E of Sutlej Textiles and Industries Ltd?

The Stock P/E of Sutlej Textiles and Industries Ltd is .

What is the Book Value of Sutlej Textiles and Industries Ltd?

The Book Value of Sutlej Textiles and Industries Ltd is 59.6.

What is the Dividend Yield of Sutlej Textiles and Industries Ltd?

The Dividend Yield of Sutlej Textiles and Industries Ltd is 1.73 %.

What is the ROCE of Sutlej Textiles and Industries Ltd?

The ROCE of Sutlej Textiles and Industries Ltd is 6.25 %.

What is the ROE of Sutlej Textiles and Industries Ltd?

The ROE of Sutlej Textiles and Industries Ltd is 11.0 %.

What is the Face Value of Sutlej Textiles and Industries Ltd?

The Face Value of Sutlej Textiles and Industries Ltd is 1.00.

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