Check Before You Invest : S.P. Apparels Ltd

Q: Which industry/sub-sector does S.P. Apparels Ltd belong to?

S.P. Apparels Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q: Is S.P. Apparels Ltd a good quality company?

S.P. Apparels Ltd is a good quality company, based on a consistently good 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 S.P. Apparels Ltd undervalued or overvalued?

S.P. Apparels 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: 18.04, Historic Median: 16.40. Price to Book, Current: 2.2, Historic Median: 2.03. Price to Sales, Current: 1.26, Historic Median: 1.26. EV to EBITDA, Current: 9.64, Historic Median: 9.50

Q: Is S.P. Apparels Ltd a good buy now?

S.P. Apparels 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

Q: Revenue growth of S.P. Apparels Ltd?

S.P. Apparels Ltd revenue growth is 28.3% for FY-2025, which is above its 5-year CAGR of 11.52%, indicating faster growth.

Q: Gross Profit margin of S.P. Apparels Ltd?

S.P. Apparels Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is below its 5-year median of 14%, indicating decreasing margins.

Q: Operating Profit Margin of S.P. Apparels Ltd?

S.P. Apparels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.55% for FY-2025, which is below its 5-year median of 15.24% indicating decreasing margins.

Q: Net Profit Margin of S.P. Apparels Ltd?

S.P. Apparels Ltd Net Profit Margin is 6.82% for FY-2025, is below its 5-year median of 7.63%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.9, Historic Median: 14. Operating Profit Margin (%), Current: 13.55, Historic Median: 15.24. Net Profit Margin (%), Current: 6.82, Historic Median: 7.63

Q: Return on Asset of S.P. Apparels Ltd?

S.P. Apparels Ltd Return on Asset is 7.32%, which is in line with its 5-year historical median of 7.35%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of S.P. Apparels Ltd?

S.P. Apparels Ltd Return on capital employed is 14.53% for FY-2025, which is in line with its 5-year historical median of 14.98%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : S.P. Apparels Ltd

BSE: 540048 NSE: SPAL ISIN: INE212I01016

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does S.P. Apparels Ltd belong to?

S.P. Apparels Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is S.P. Apparels Ltd a good quality company?

S.P. Apparels Ltd is a good quality company, based on a consistently good 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 S.P. Apparels Ltd undervalued or overvalued?

S.P. Apparels 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	18.04	16.40
Price to Book	2.2	2.03
Price to Sales	1.26	1.26
EV to EBITDA	9.64	9.50

Q.4 Is S.P. Apparels Ltd a good buy now?

S.P. Apparels 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.

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

Q.1 Revenue growth of S.P. Apparels Ltd?

S.P. Apparels Ltd revenue growth is 28.3% for FY-2025, which is above its 5-year CAGR of 11.52%, indicating faster growth.

Q.2 Gross Profit margin of S.P. Apparels Ltd?

S.P. Apparels Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is below its 5-year median of 14%, indicating decreasing margins.

Q.3 Operating Profit Margin of S.P. Apparels Ltd?

S.P. Apparels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.55% for FY-2025, which is below its 5-year median of 15.24% indicating decreasing margins.

Q.4 Net Profit Margin of S.P. Apparels Ltd?

S.P. Apparels Ltd Net Profit Margin is 6.82% for FY-2025, is below its 5-year median of 7.63%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	11.9	14
Operating Profit Margin (%)	13.55	15.24
Net Profit Margin (%)	6.82	7.63

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of S.P. Apparels Ltd?

S.P. Apparels Ltd Return on Asset is 7.32%, which is in line with its 5-year historical median of 7.35%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of S.P. Apparels Ltd?

S.P. Apparels Ltd Return on capital employed is 14.53% for FY-2025, which is in line with its 5-year historical median of 14.98%. 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 S.P. Apparels Ltd?

S.P. Apparels Ltd Return on equity is 11.74% for FY-2025, which is below its 5-year historical median of 12.47%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of S.P. Apparels Ltd?

S.P. Apparels Ltd Cash conversion cycle is 102 days, in line with its 5-year historical median of 103 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.07	0.96
ROE (%)	11.74	12.47
ROCE (%)	14.53	14.98
Cash Conversion Cycle	102 days	103 days

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

Q.9 Debt to Equity ratio of S.P. Apparels Ltd?

S.P. Apparels Ltd Debt-to-Equity ratio is 0.42, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of S.P. Apparels Ltd?

S.P. Apparels Ltd Debt to cash flow from operations is 8.07, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of S.P. Apparels Ltd?

Q.1 Promoter shareholding and pledge status of S.P. Apparels Ltd?

Promoters hold 61.81% of the S.P. Apparels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does S.P. Apparels Ltd performance compare with that of its Peers?

Q.1 Revenue growth of S.P. Apparels Ltd vs industry peers?

S.P. Apparels Ltd revenue CAGR is 11.52%, 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 (%)	28.3	0
Gross Profit Growth (%)	7.7	9.1
Operating Profit Growth (%)	21.3	8.5
Net Profit Growth (%)	5.6	13

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.07	0.95
ROE (%)	11.74	4.25
ROCE (%)	14.53	7.55
Cash Conversion Cycle (days)	102.2	102

Valuation & price assessment

Q.1 Stock return of S.P. Apparels Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 35.32% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	35.3%	30%	-8.3%

Q.2 Valuation ratios of S.P. Apparels Ltd vs historical?

The current P/E ratio of 18.04 is higher than its historical median of 16.40, 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	18.04	16.40	20.16
Price to Book	2.2	2.03	1.32
Price to Sales	1.26	1.26	1.06
EV to EBITDA	9.64	9.50	9.31

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Check Before You Invest : S.P. Apparels 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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