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Check Before You Invest : Spice Islands Industries Ltd

BSE: 526827 NSE: ISIN: INE882D01017
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Spice Islands Industries Ltd belong to?
Spice Islands Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Spice Islands Industries Ltd a good quality company?
Spice Islands Industries Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Spice Islands Industries Ltd undervalued or overvalued?
Spice Islands Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Spice Islands Industries Ltd a good buy now?
Spice Islands Industries 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

Q.1 Revenue growth of Spice Islands Industries Ltd?
Spice Islands Industries Ltd revenue growth is 0% for FY-2025 , which is above its 5 year CAGR of -45.1% , indicating faster growth.
Q.2 Gross Profit margin of Spice Islands Industries Ltd?
Spice Islands Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 152% for FY-2025 , which is above its 5 year median of -7% , indicating increasing margins.
Q.3 Operating Profit Margin of Spice Islands Industries Ltd?
Spice Islands Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -123.36% for FY-2025 , which is below its 5 year median of -24.43% indicating decreasing margins.
Q.4 Net Profit Margin of Spice Islands Industries Ltd?
Spice Islands Industries Ltd Net Profit Margin is 61.29% for FY-2025 , is above with its 5 year median of -14.24%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 152 -7
Operating Profit Margin -123.36 -24.43
Net Profit Margin 61.29 -14.24
Q.5 Return on Asset of Spice Islands Industries Ltd?
Spice Islands Industries Ltd Return on Asset is 16.83%, which is above its 5 year historical median of -5.93%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Spice Islands Industries Ltd?
Spice Islands Industries Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Spice Islands Industries Ltd?
Spice Islands Industries Ltd Return on capital employed is 59.43% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Spice Islands Industries Ltd?
Spice Islands Industries Ltd Cash conversion cycle is 306 days, above its historical median of 60 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.27 0.42
ROE - -
ROCE 59.43 -24.5
Cash Conversion Cycle 306 days 60 days
Q.9 Debt to Equity ratio of Spice Islands Industries Ltd?
Spice Islands Industries Ltd Debt-to-Equity ratio is 7.02 , which is above with the industry average of 0.42 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Spice Islands Industries Ltd?
Spice Islands Industries Ltd Debt to cash flow from operations is 4.24 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Spice Islands Industries Ltd?
Promoters hold 43.11% of the Spice Islands Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Spice Islands Industries Ltd vs industry peers?
Spice Islands Industries Ltd revenue CAGR is -45.10% , compared to the industry median CAGR of 0.00% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 0.8 96.6
Gross Profit 1.5 3.2
Operating Profit -1 5.7
Net Profit - 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.27 0.95
ROE - 4.25
ROCE 59.43 7.55
Cash Conversion Cycle (days) 305.69 102

Valuation & price assessment

Q.1 Stock return of Spice Islands Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 29.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 29.9% 155.9% 192.6% 529.3%
Q.3 Valuation ratios of Spice Islands Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 45.58 0.00 30.76
Price to Book 16.46 10.58 1.39
Price to Sales 25.75 0.39 1.01
EV to EBITDA 44.66 0.00 9.47

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