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MoneyWorks4Me

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 average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is SBC Exports Ltd undervalued or overvalued?
SBC Exports Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 78.02 57.84
Price to Book 31.43 13.00
Price to Sales 5.93 3.05
EV to EBITDA 53.35 35.91
Q.4 Is SBC Exports Ltd a good buy now?
SBC Exports Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Operating Profit Margin of SBC Exports Ltd?
SBC Exports Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.41% for FY-2026, which is above its 5-year median of 6.28% indicating increasing margins.

Q.2 Net Profit Margin of SBC Exports Ltd?
SBC Exports Ltd Net Profit Margin is 6.27% for FY-2026, is above its 5-year median of 4.43%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 8.9 6.7
Operating Profit Margin (%) 8.41 6.28
Net Profit Margin (%) 6.27 4.43

B: Does the business utilize capital efficiently?

Q.3 Return on Asset of SBC Exports Ltd?
SBC Exports Ltd Return on Asset is 7.14%, which is above its 5-year historical median of 6.18%, indicating improved asset utilization efficiency.

Q.4 Return on capital employed (ROCE) of SBC Exports Ltd?
SBC Exports Ltd Return on capital employed is 18.36% for FY-2026, which is below its 5-year historical median of 20.67%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.5 Return on Equity (ROE) of SBC Exports Ltd?
SBC Exports Ltd Return on equity is 37.22% for FY-2026, which is above its 5-year historical median of 23.58%, indicating the business is making better use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.6 Debt to Equity ratio of SBC Exports Ltd?
SBC Exports Ltd Debt-to-Equity ratio is 2.83, which is above the industry average of 0.43, indicating higher debt levels in the industry.

Q.7 Debt to cash flow from operations of SBC Exports Ltd?
SBC Exports Ltd Debt to cash flow from operations is -3.14, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of SBC Exports Ltd?

Q.1 Promoter shareholding and pledge status of SBC Exports Ltd?
Promoters hold 50.97% of the SBC Exports Ltd, with 41.55% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does SBC Exports Ltd performance compare with that of its Peers?

Q.1 Revenue growth of SBC Exports Ltd vs industry peers?
SBC Exports Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 19.8 -
Gross Profit Growth (%) 80 10.7
Operating Profit Growth (%) 79 8.8
Net Profit Growth (%) 92.3 12
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.14 0.95
ROE (%) 37.22 5.08
ROCE (%) 18.36 8.34
Cash Conversion Cycle (days) 114.88 102

Valuation & price assessment

Q.1 Stock return of SBC Exports Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 126.92% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 126.9% 75.4% 176.9%
Q.2 Valuation ratios of SBC Exports Ltd vs historical?
The current P/E ratio of 78.02 is higher than its historical median of 57.84, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 78.02 57.84 17.82
Price to Book 31.43 13.00 1.38
Price to Sales 5.93 3.05 1.06
EV to EBITDA 53.35 35.91 9.19

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