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Check Before You Invest : Suryavanshi Spinning Mills Ltd

BSE: 514140 NSE: SURYVANSPG ISIN: INE431C01023
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does Suryavanshi Spinning Mills Ltd belong to?
Suryavanshi Spinning Mills Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is Suryavanshi Spinning Mills Ltd a good quality company?
Suryavanshi Spinning Mills 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 Suryavanshi Spinning Mills Ltd undervalued or overvalued?
Suryavanshi Spinning Mills 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 1.36 2.59
Price to Book -0.81 -1.15
Price to Sales 1.37 0.29
EV to EBITDA 9.44 7.23
Q.4 Is Suryavanshi Spinning Mills Ltd a good buy now?
Suryavanshi Spinning Mills 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 Suryavanshi Spinning Mills Ltd?
Suryavanshi Spinning Mills Ltd revenue growth is 68.2% for FY-2025, which is above its 5-year CAGR of -46.73%, indicating faster growth.

Q.2 Gross Profit margin of Suryavanshi Spinning Mills Ltd?
Suryavanshi Spinning Mills Ltd Gross profit margin which is the profit after deduction of direct costs, is -9.6% for FY-2025, which is below its 5-year median of 4.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Suryavanshi Spinning Mills Ltd?
Suryavanshi Spinning Mills Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -138.63% for FY-2025, which is below its 5-year median of -23.5% indicating decreasing margins.

Q.4 Net Profit Margin of Suryavanshi Spinning Mills Ltd?
Suryavanshi Spinning Mills Ltd Net Profit Margin is 313.37% for FY-2025, is above its 5-year median of 97.59%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -9.6 4.9
Operating Profit Margin (%) -138.63 -23.5
Net Profit Margin (%) 313.37 97.59

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Suryavanshi Spinning Mills Ltd?
Suryavanshi Spinning Mills Ltd Return on Asset is 16%, which is above its 5-year historical median of 3.81%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Suryavanshi Spinning Mills Ltd?
Suryavanshi Spinning Mills Ltd Return on capital employed is 93.4% for FY-2025, which is above its 5-year historical median of 19.32%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Cash conversion cycle of Suryavanshi Spinning Mills Ltd?
Suryavanshi Spinning Mills Ltd Cash conversion cycle is -498 days, in line with its 5-year historical median of -481 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

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

Q.8 Debt to Equity ratio of Suryavanshi Spinning Mills Ltd?
Suryavanshi Spinning Mills Ltd Debt-to-Equity ratio is -1.27, which is lower the industry average of 0.36, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Suryavanshi Spinning Mills Ltd?
Suryavanshi Spinning Mills Ltd Debt to cash flow from operations is 8.98, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Suryavanshi Spinning Mills Ltd?

Q.1 Promoter shareholding and pledge status of Suryavanshi Spinning Mills Ltd?
Promoters hold 62.97% of the Suryavanshi Spinning Mills Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Suryavanshi Spinning Mills Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Suryavanshi Spinning Mills Ltd vs industry peers?
Suryavanshi Spinning Mills Ltd revenue CAGR is -46.73%, compared to the industry median CAGR of 1.47%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 68.2 1.5
Gross Profit Growth (%) -116.2 1.8
Operating Profit Growth (%) 0 -1.5
Net Profit Growth (%) -48.7 2.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.05 0.94
ROE (%) - -
ROCE (%) 93.4 5.99
Cash Conversion Cycle (days) -498.31 61

Valuation & price assessment

Q.1 Stock return of Suryavanshi Spinning Mills Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 5.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
5.4% 16% -9.7% -36.2%
Q.2 Valuation ratios of Suryavanshi Spinning Mills Ltd vs historical?
The current P/E ratio of 1.36 is lower than its historical median of 2.59, 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 1.36 2.59 9.43
Price to Book -0.81 -1.15 0.72
Price to Sales 1.37 0.29 0.40
EV to EBITDA 9.44 7.23 7.20

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