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Check Before You Invest : SBC Exports Ltd

BSE: 542725 NSE: SBC ISIN: INE04AK01028
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does SBC Exports Ltd belong to?
SBC Exports Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is SBC Exports Ltd a good quality company?
SBC Exports Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is SBC Exports Ltd undervalued or overvalued?
SBC Exports Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is SBC Exports Ltd a good buy now?
SBC Exports Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of SBC Exports Ltd?
SBC Exports Ltd revenue growth is 21.2% for FY-2025 , which is above its 5 year CAGR of 16.1% , indicating faster growth.
Q.2 Gross Profit margin of SBC Exports Ltd?
SBC Exports Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.9% for FY-2025 , which is above its 5 year median of 4.8% , indicating increasing margins.
Q.3 Operating Profit Margin of SBC Exports Ltd?
SBC Exports Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.49% for FY-2025 , which is above its 5 year median of 5.61% indicating increasing margins.
Q.4 Net Profit Margin of SBC Exports Ltd?
SBC Exports Ltd Net Profit Margin is 5.21% for FY-2025 , is above with its 5 year median of 3.62%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 7.9 4.8
Operating Profit Margin 7.49 5.61
Net Profit Margin 5.21 3.62
Q.5 Return on Asset of SBC Exports Ltd?
SBC Exports Ltd Return on Asset is 5.47(x), which is in line with its 5 year historical median of 5.47(x), indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of SBC Exports Ltd?
SBC Exports Ltd Return on equity is 24.49% for FY-2025 , which is above its historical median of 22.44%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of SBC Exports Ltd?
SBC Exports Ltd Return on capital employed is 17.43% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of SBC Exports Ltd?
SBC Exports Ltd Cash conversion cycle is 144 , above its historical median of 61 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.05 2.03
ROE 24.49 22.44
ROCE 17.43 21.88
Cash Conversion Cycle 144 61
Q.9 Debt to Equity ratio of SBC Exports Ltd?
SBC Exports Ltd Debt-to-Equity ratio is 2.40 , which is above with the industry average of 0.42 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of SBC Exports Ltd?
SBC Exports Ltd Debt to cash flow from operations is -1.99 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of SBC Exports Ltd?
Promoters hold 50.35% of the SBC Exports Ltd, with 29.73% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of SBC Exports Ltd vs industry peers?
SBC Exports Ltd revenue CAGR is 16.14% , compared to the industry median CAGR of 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 231.5 96.6
Gross Profit 18.3 3.2
Operating Profit 17 5.7
Net Profit 12 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.05 0.95
ROE 24.49 4.25
ROCE 17.43 7.55
Cash Conversion Cycle 144.15 102

Valuation & price assessment

Q.1 Stock return of SBC Exports Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 0% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 104.8% 59.8% 154.9%
Q.3 Valuation ratios of SBC Exports Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 59.82 34.06 30.76
Price to Book 20.37 4.46 1.39
Price to Sales 5.81 0.70 1.01
EV to EBITDA 47.69 15.53 9.47

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