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Check Before You Invest : Suratwwala Business Group Ltd

BSE: 543218 NSE: SBGLP ISIN: INE05ST01028
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Suratwwala Business Group Ltd belong to?
Suratwwala Business Group Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Suratwwala Business Group Ltd a good quality company?
Suratwwala Business Group 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 Suratwwala Business Group Ltd undervalued or overvalued?
Suratwwala Business Group Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 17.73 36.32
Price to Book 5.28 9.74
Price to Sales 6.31 14.18
EV to EBITDA 14.51 26.48
Q.4 Is Suratwwala Business Group Ltd a good buy now?
Suratwwala Business Group 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

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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Suratwwala Business Group Ltd?
Suratwwala Business Group Ltd revenue growth is -55.2% for FY-2025, which is below its 5-year CAGR of 24.57%, indicating slower growth.

Q.2 Gross Profit margin of Suratwwala Business Group Ltd?
Suratwwala Business Group Ltd Gross profit margin which is the profit after deduction of direct costs, is 46.7% for FY-2025, which is in line with its 5-year median of 46.7%, indicating stable margins.

Q.3 Operating Profit Margin of Suratwwala Business Group Ltd?
Suratwwala Business Group Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 41.41% for FY-2025, which is below its 5-year median of 48.65% indicating decreasing margins.

Q.4 Net Profit Margin of Suratwwala Business Group Ltd?
Suratwwala Business Group Ltd Net Profit Margin is 33.3% for FY-2025, is in line with its 5-year median of 34.3%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 46.7 46.7
Operating Profit Margin (%) 41.41 48.65
Net Profit Margin (%) 33.3 34.3

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Suratwwala Business Group Ltd?
Suratwwala Business Group Ltd Return on Asset is 7.77%, which is below its 5-year historical median of 9.74%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Suratwwala Business Group Ltd?
Suratwwala Business Group Ltd Return on capital employed is 14.34% for FY-2025, which is below its 5-year historical median of 26.04%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Suratwwala Business Group Ltd?
Suratwwala Business Group Ltd Return on equity is 16.99% for FY-2025, which is below its 5-year historical median of 30.22%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Suratwwala Business Group Ltd?
Suratwwala Business Group Ltd Cash conversion cycle is 852 days, above its 5-year historical median of 743 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.23 0.23
ROE (%) 16.99 30.22
ROCE (%) 14.34 26.04
Cash Conversion Cycle 852 days 743 days

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

Q.9 Debt to Equity ratio of Suratwwala Business Group Ltd?
Suratwwala Business Group Ltd Debt-to-Equity ratio is 0.88, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Suratwwala Business Group Ltd?
Suratwwala Business Group Ltd Debt to cash flow from operations is -21.46, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Suratwwala Business Group Ltd?

Q.1 Promoter shareholding and pledge status of Suratwwala Business Group Ltd?
Promoters hold 73.39% of the Suratwwala Business Group Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Suratwwala Business Group Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Suratwwala Business Group Ltd vs industry peers?
Suratwwala Business Group Ltd revenue CAGR is 24.57%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -55.2 0
Gross Profit Growth (%) -60.5 14.9
Operating Profit Growth (%) -66.7 10.4
Net Profit Growth (%) -60.7 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.23 0.1
ROE (%) 16.99 1.36
ROCE (%) 14.34 3.88
Cash Conversion Cycle (days) 851.87 439

Valuation & price assessment

Q.1 Stock return of Suratwwala Business Group Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 31.37% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 31.4% 11.7% -32.4%
Q.2 Valuation ratios of Suratwwala Business Group Ltd vs historical?
The current P/E ratio of 17.73 is lower than its historical median of 36.32, indicating that the stock is trading below 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 17.73 36.32 33.43
Price to Book 5.28 9.74 1.53
Price to Sales 6.31 14.18 5.23
EV to EBITDA 14.51 26.48 14.43

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