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Check Before You Invest : Southern Latex Ltd

BSE: 514454 NSE: ISIN: INE410M01018
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Southern Latex Ltd belong to?
Southern Latex Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Southern Latex Ltd a good quality company?
Southern Latex 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 Southern Latex Ltd undervalued or overvalued?
Southern Latex 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 0-year
Historic Median
Price to Earnings 77.38 19.96
Price to Book 3.14 2.88
Price to Sales - 1.30
EV to EBITDA 65.25 8.16
Q.4 Is Southern Latex Ltd a good buy now?
Southern Latex 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.

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

Q.1 Debt to Equity ratio of Southern Latex Ltd?
Southern Latex Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of , indicating similar to debt levels in the industry.

Q.2 Debt to cash flow from operations of Southern Latex Ltd?
Southern Latex Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Southern Latex Ltd?

Q.1 Promoter shareholding and pledge status of Southern Latex Ltd?
Promoters hold 65.57% of the Southern Latex Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Southern Latex Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Southern Latex Ltd vs industry peers?
Southern Latex Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) - 9.1
Operating Profit Growth (%) 0 8.5
Net Profit Growth (%) - 13
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) - 0.95
ROE (%) - 4.34
ROCE (%) - 7.56
Cash Conversion Cycle (days) - 101

Valuation & price assessment

Q.1 Stock return of Southern Latex Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 20.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
20.3% 29.4% 20.8% 0.8%
Q.2 Valuation ratios of Southern Latex Ltd vs historical?
The current P/E ratio of 77.38 is higher than its historical median of 19.96, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 77.38 19.96 -
Price to Book 3.14 2.88 -
Price to Sales - 1.30 -
EV to EBITDA 65.25 8.16 -

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