Check Before You Invest : Silky Overseas Ltd

Q: Which industry/sub-sector does Silky Overseas Ltd belong to?

Silky Overseas Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q: Is Silky Overseas Ltd a good quality company?

Silky Overseas Ltd is a quality company, based on a 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: Is Silky Overseas Ltd undervalued or overvalued?

Silky Overseas 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. Price to Earnings, Current: 8.22, Historic Median: 8.82. Price to Book, Current: 1.44, Historic Median: 1.58. Price to Sales, Current: 0.69, Historic Median: 0.74. EV to EBITDA, Current: 6.1, Historic Median: 6.55

Q: Is Silky Overseas Ltd a good buy now?

Silky Overseas Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Silky Overseas Ltd?

Silky Overseas Ltd revenue growth is 77.7% for FY-2025, which is above its 3-year CAGR of 35.18%, indicating faster growth.

Q: Gross Profit margin of Silky Overseas Ltd?

Silky Overseas Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.7% for FY-2025, which is in line with its 3-year median of 12.7%, indicating stable margins.

Q: Operating Profit Margin of Silky Overseas Ltd?

Silky Overseas Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.08% for FY-2025, which is in line with its 3-year median of 14.08% indicating stable margins.

Q: Net Profit Margin of Silky Overseas Ltd?

Silky Overseas Ltd Net Profit Margin is 8.38% for FY-2025, is in line with its 3-year median of 8.13%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 12.7, Historic Median: 12.7. Operating Profit Margin (%), Current: 14.08, Historic Median: 14.08. Net Profit Margin (%), Current: 8.38, Historic Median: 8.13

Q: Return on Asset of Silky Overseas Ltd?

Silky Overseas Ltd Return on Asset is 16.81%, which is above its 3-year historical median of 12.47%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Silky Overseas Ltd?

Silky Overseas Ltd Return on capital employed is 37.23% for FY-2025, which is above its 3-year historical median of 26.56%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Silky Overseas Ltd

Snapshot

Q.1 Which industry/sub-sector does Silky Overseas Ltd belong to?

Silky Overseas Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Silky Overseas Ltd a good quality company?

Silky Overseas Ltd is a quality company, based on a 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 Silky Overseas Ltd undervalued or overvalued?

Silky Overseas 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	3-year Historic Median
Price to Earnings	8.22	8.82
Price to Book	1.44	1.58
Price to Sales	0.69	0.74
EV to EBITDA	6.1	6.55

Q.4 Is Silky Overseas Ltd a good buy now?

Silky Overseas Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 Silky Overseas Ltd?

Silky Overseas Ltd revenue growth is 77.7% for FY-2025, which is above its 3-year CAGR of 35.18%, indicating faster growth.

Q.2 Gross Profit margin of Silky Overseas Ltd?

Silky Overseas Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.7% for FY-2025, which is in line with its 3-year median of 12.7%, indicating stable margins.

Q.3 Operating Profit Margin of Silky Overseas Ltd?

Silky Overseas Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.08% for FY-2025, which is in line with its 3-year median of 14.08% indicating stable margins.

Q.4 Net Profit Margin of Silky Overseas Ltd?

Silky Overseas Ltd Net Profit Margin is 8.38% for FY-2025, is in line with its 3-year median of 8.13%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	12.7	12.7
Operating Profit Margin (%)	14.08	14.08
Net Profit Margin (%)	8.38	8.13

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Silky Overseas Ltd?

Silky Overseas Ltd Return on Asset is 16.81%, which is above its 3-year historical median of 12.47%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Silky Overseas Ltd?

Silky Overseas Ltd Return on capital employed is 37.23% for FY-2025, which is above its 3-year historical median of 26.56%. 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 Silky Overseas Ltd?

Silky Overseas Ltd Return on equity is 51.06% for FY-2025, which is in line with its 3-year historical median of 51.06%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Silky Overseas Ltd?

Silky Overseas Ltd Cash conversion cycle is 51 days, below its 3-year historical median of 95 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	2	1.77
ROE (%)	51.06	51.06
ROCE (%)	37.23	26.56
Cash Conversion Cycle	51 days	95 days

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

Q.9 Debt to Equity ratio of Silky Overseas Ltd?

Silky Overseas Ltd Debt-to-Equity ratio is 0.79, which is above the industry average of 0.42, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Silky Overseas Ltd?

Silky Overseas Ltd Debt to cash flow from operations is 2.58, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Silky Overseas Ltd?

Q.1 Promoter shareholding and pledge status of Silky Overseas Ltd?

Promoters hold 60.53% of the Silky Overseas Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Silky Overseas Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Silky Overseas Ltd vs industry peers?

Silky Overseas Ltd revenue CAGR is 35.18%, compared to the industry median CAGR of 1.00%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	77.7	1
Gross Profit Growth (%)	61.3	6.8
Operating Profit Growth (%)	54.8	6.1
Net Profit Growth (%)	83.1	10

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	2	0.97
ROE (%)	51.06	4.83
ROCE (%)	37.23	7.46
Cash Conversion Cycle (days)	50.89	101

Valuation & price assessment

Q.1 Stock return of Silky Overseas Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.2 Valuation ratios of Silky Overseas Ltd vs historical?

The current P/E ratio of 8.22 is lower than its historical median of 8.82, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	8.22	8.82	21.85
Price to Book	1.44	1.58	1.39
Price to Sales	0.69	0.74	1.29
EV to EBITDA	6.1	6.55	10.21

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Check Before You Invest : Silky Overseas Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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