Check Before You Invest : Sumeet Industries Ltd

Snapshot

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

Sumeet Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.

Q.2 Is Sumeet Industries Ltd a good quality company?

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

Q.3 Is Sumeet Industries Ltd undervalued or overvalued?

Sumeet Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Sumeet Industries Ltd a good buy now?

Sumeet Industries 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

Q.1 Revenue growth of Sumeet Industries Ltd?

Sumeet Industries Ltd revenue growth is 1.9% for FY-2025, which is below its 5-year CAGR of 7.25%, indicating slower growth.

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

Sumeet Industries Ltd Return on capital employed is 56.33% for FY-2025, which is above its 5-year historical median of -1.6%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Sumeet Industries Ltd?

Sumeet Industries Ltd Return on Asset is 34.19%, which is above its 5-year historical median of -1.06%, indicating improved asset utilization efficiency.

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

Sumeet Industries Ltd Return on equity is 464.37% for FY-2025, which is above its 5-year historical median of -28.44%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Sumeet Industries Ltd?

Sumeet Industries Ltd Cash conversion cycle is 34 days, below its 5-year historical median of 68 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	2.27	1.87
ROE	464.37	-28.44
ROCE	56.33	-1.6
Cash Conversion Cycle	34 days	68 days

Q.6 Gross Profit margin of Sumeet Industries Ltd?

Sumeet Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.1% for FY-2025, which is in line with its 5-year median of 1.1%, indicating stable margins.

Q.7 Operating Profit Margin of Sumeet Industries Ltd?

Sumeet Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.23% for FY-2025, which is in line with its 5-year median of 1.23% indicating stable margins.

Q.8 Net Profit Margin of Sumeet Industries Ltd?

Sumeet Industries Ltd Net Profit Margin is 15.05% for FY-2025, is above with its 5-year median of -1.23%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	1.1	1.1
Operating Profit Margin	1.23	1.23
Net Profit Margin	15.05	-1.23

Q.9 Debt to Equity ratio of Sumeet Industries Ltd?

Sumeet Industries Ltd Debt-to-Equity ratio is 0.38, which is lower with the industry average of 0.4, indicating lower debt levels in the industry.

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

Sumeet Industries Ltd Debt to cash flow from operations is 0.22, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sumeet Industries Ltd?

Promoters hold 89.83% of the Sumeet Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sumeet Industries Ltd vs industry peers?

Sumeet Industries Ltd revenue CAGR is 7.25%, compared to the industry median CAGR of 2.18%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.9	2.2
Gross Profit Growth	0	NAN
Operating Profit Growth	0	-2.1
Net Profit Growth	0	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.27	1
ROE	464.37	3.73
ROCE	56.33	6.18
Cash Conversion Cycle (days)	33.69	72

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 34.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	34.5%	100.7%	264.2%	2988.7%

Q.3 Valuation ratios of Sumeet Industries Ltd vs historical?

The current P/E is higher 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	20.94	9.47	9.40
Price to Book	8.57	-0.27	0.72
Price to Sales	1.53	0.06	0.40
EV to EBITDA	29.99	8.27	7.20

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