Check Before You Invest : Sarup Industries Ltd

Snapshot

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

Sarup Industries Ltd belongs to the FMCG sector, operating specifically within the Footwear segment.

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

Sarup Industries Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Sarup Industries Ltd undervalued or overvalued?

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

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

Sarup 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 Sarup Industries Ltd?

Sarup Industries Ltd revenue growth is 38% for FY-2025, which is above its 5-year CAGR of -5.42%, indicating faster growth.

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

Sarup Industries Ltd Return on capital employed is 17.25% for FY-2025, which is above its 5-year historical median of 0.12%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Sarup Industries Ltd?

Sarup Industries Ltd Return on Asset is 7.3%, which is above its 5-year historical median of -3.17%, indicating improved asset utilization efficiency.

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

Sarup Industries Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -63.41%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Sarup Industries Ltd?

Sarup Industries Ltd Cash conversion cycle is 697 days, below its 5-year historical median of 783 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	0.24	0.18
ROE	-	-63.41
ROCE	17.25	0.12
Cash Conversion Cycle	697 days	783 days

Q.6 Gross Profit margin of Sarup Industries Ltd?

Sarup Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 32% for FY-2025, which is above its 5-year median of -10.2%, indicating increasing margins.

Q.7 Operating Profit Margin of Sarup Industries Ltd?

Sarup Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.21% for FY-2025, which is above its 5-year median of 6.46% indicating increasing margins.

Q.8 Net Profit Margin of Sarup Industries Ltd?

Sarup Industries Ltd Net Profit Margin is 29.98% for FY-2025, is above with its 5-year median of -17.79%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	32	-10.2
Operating Profit Margin	14.21	6.46
Net Profit Margin	29.98	-17.79

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

Sarup Industries Ltd Debt-to-Equity ratio is -12.21, which is lower with the industry average of 0.35, indicating lower debt levels in the industry.

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

Sarup Industries Ltd Debt to cash flow from operations is -16.13, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 74.36% of the Sarup Industries Ltd, with 28.94% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

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

Sarup Industries Ltd revenue CAGR is -5.42%, compared to the industry median CAGR of 0.71%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	38	0.7
Gross Profit Growth	0	-0.7
Operating Profit Growth	94	-1.3
Net Profit Growth	0	-2.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.24	1.01
ROE	-	5.53
ROCE	17.25	10.23
Cash Conversion Cycle (days)	696.88	87

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 7.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	7.7%	53.2%	76.8%	19.5%

Q.3 Valuation ratios of Sarup 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	56.87	7.48	32.02
Price to Book	-15.17	-2.88	1.33
Price to Sales	2.48	1.10	0.96
EV to EBITDA	37.68	36.74	11.55

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