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Check Before You Invest : Sunil Industries Ltd

BSE: 521232 NSE: ISIN: INE124M01015
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Sunil Industries Ltd belong to?
Sunil Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Sunil Industries Ltd a good quality company?
Sunil Industries 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 Sunil Industries Ltd undervalued or overvalued?
Sunil Industries 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 6.33 7.28
Price to Book 0.61 0.57
Price to Sales 0.16 0.13
EV to EBITDA 6.24 6.13
Q.4 Is Sunil Industries Ltd a good buy now?
Sunil 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

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 Sunil Industries Ltd?
Sunil Industries Ltd revenue growth is -4.6% for FY-2025, which is below its 5-year CAGR of 13.46%, indicating slower growth.

Q.2 Gross Profit margin of Sunil Industries Ltd?
Sunil Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.4% for FY-2025, which is above its 5-year median of 3.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Sunil Industries Ltd?
Sunil Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.63% for FY-2025, which is above its 5-year median of 5.63% indicating increasing margins.

Q.4 Net Profit Margin of Sunil Industries Ltd?
Sunil Industries Ltd Net Profit Margin is 2.27% for FY-2025, is above its 5-year median of 1.51%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.4 3.4
Operating Profit Margin (%) 7.63 5.63
Net Profit Margin (%) 2.27 1.51

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sunil Industries Ltd?
Sunil Industries Ltd Return on Asset is 3.12%, which is above its 5-year historical median of 2.88%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sunil Industries Ltd?
Sunil Industries Ltd Return on capital employed is 10.63% for FY-2025, which is above its 5-year historical median of 9.1%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Sunil Industries Ltd?
Sunil Industries Ltd Return on equity is 8.25% for FY-2025, which is above its 5-year historical median of 7.08%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Sunil Industries Ltd?
Sunil Industries Ltd Cash conversion cycle is 110 days, above its 5-year historical median of 97 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.37 1.45
ROE (%) 8.25 7.08
ROCE (%) 10.63 9.1
Cash Conversion Cycle 110 days 97 days

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

Q.9 Debt to Equity ratio of Sunil Industries Ltd?
Sunil Industries Ltd Debt-to-Equity ratio is 1.12, which is above the industry average of 0.42, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sunil Industries Ltd?
Sunil Industries Ltd Debt to cash flow from operations is 4.69, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sunil Industries Ltd?

Q.1 Promoter shareholding and pledge status of Sunil Industries Ltd?
Promoters hold 58.36% of the Sunil Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sunil Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sunil Industries Ltd vs industry peers?
Sunil Industries Ltd revenue CAGR is 13.46%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -4.6 -
Gross Profit Growth (%) 21.3 9.1
Operating Profit Growth (%) 12.9 8.5
Net Profit Growth (%) 74.1 13
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.37 0.95
ROE (%) 8.25 4.34
ROCE (%) 10.63 7.56
Cash Conversion Cycle (days) 110.37 101

Valuation & price assessment

Q.1 Stock return of Sunil Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
12.8% 44.5% 16% -4.3%
Q.2 Valuation ratios of Sunil Industries Ltd vs historical?
The current P/E ratio of 6.33 is lower than its historical median of 7.28, indicating that the stock is trading below 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 6.33 7.28 20.16
Price to Book 0.61 0.57 1.32
Price to Sales 0.16 0.13 1.06
EV to EBITDA 6.24 6.13 9.31

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