Check Before You Invest : Sreeleathers Ltd

BSE: 535601 NSE: SREEL ISIN: INE099F01013

| Sector: Miscellaneous | Industry: Trading

Snapshot

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

Sreeleathers Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Sreeleathers Ltd a good quality company?

Sreeleathers Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Sreeleathers Ltd undervalued or overvalued?

Sreeleathers Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Sreeleathers Ltd a good buy now?

Sreeleathers 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

Q.1 Revenue growth of Sreeleathers Ltd?

Sreeleathers Ltd revenue growth is 1% for FY-2025, which is below its 5-year CAGR of 4.91%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Sreeleathers Ltd?

Sreeleathers Ltd Return on capital employed is 7.35% for FY-2025, which is in line with its 5-year historical median of 7.35%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Sreeleathers Ltd?

Sreeleathers Ltd Return on Asset is 4.88%, which is in line with its 5-year historical median of 4.88%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sreeleathers Ltd?

Sreeleathers Ltd Return on equity is 5.13% for FY-2025, which is in line with its 5-year historical median of 5.13%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Sreeleathers Ltd?

Sreeleathers Ltd Cash conversion cycle is 3 days, below its 5-year historical median of 10 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.48	0.48
ROE	5.13	5.13
ROCE	7.35	7.35
Cash Conversion Cycle	3 days	10 days

Q.6 Gross Profit margin of Sreeleathers Ltd?

Sreeleathers Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.1% for FY-2025, which is below its 5-year median of 18%, indicating decreasing margins.

Q.7 Operating Profit Margin of Sreeleathers Ltd?

Sreeleathers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.57% for FY-2025, which is below its 5-year median of 17.89% indicating decreasing margins.

Q.8 Net Profit Margin of Sreeleathers Ltd?

Sreeleathers Ltd Net Profit Margin is 10.26% for FY-2025, is below with its 5-year median of 12.83%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.1	18
Operating Profit Margin	14.57	17.89
Net Profit Margin	10.26	12.83

Q.9 Debt to Equity ratio of Sreeleathers Ltd?

Sreeleathers Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.17, indicating lower debt levels in the industry.

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

Sreeleathers Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sreeleathers Ltd?

Promoters hold 75.00% of the Sreeleathers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sreeleathers Ltd vs industry peers?

Sreeleathers Ltd revenue CAGR is 4.91%, compared to the industry median CAGR of 12.68%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1	12.7
Gross Profit Growth	-13.2	17.4
Operating Profit Growth	-15.8	16.7
Net Profit Growth	-14.8	17.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.48	0.81
ROE	5.13	2.6
ROCE	7.35	3.8
Cash Conversion Cycle (days)	3.46	61

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 1.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	1.9%	5.3%	-0.1%	-21.4%

Q.3 Valuation ratios of Sreeleathers Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	17.49	24.23	33.44
Price to Book	0.87	1.28	1.58
Price to Sales	1.79	2.90	2.20
EV to EBITDA	12.08	16.30	14.05

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