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Check Before You Invest : Singer India Ltd

BSE: 505729 NSE: SINGERIND ISIN: INE638A01035
  |   Sector:  Consumer Durables   |   Industry:  Consumer Durables - Domestic Appliances

Snapshot

Q.1 Which industry/sub-sector does Singer India Ltd belong to?
Singer India Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Domestic Appliances segment.
Q.2 Is Singer India Ltd a good quality company?
Singer India Ltd is a average quality company, based on a somewhat consistent 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 Singer India Ltd undervalued or overvalued?
Singer India Ltd appears Fair, as its key valuation ratios are in line with 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 41.19 55.07
Price to Book 2.62 3.70
Price to Sales 0.88 0.95
EV to EBITDA 19 31.21
Q.4 Is Singer India Ltd a good buy now?
Singer India 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

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 Singer India Ltd?
Singer India Ltd revenue growth is 1.5% for FY-2025, which is above its 5-year CAGR of -0.88%, indicating faster growth.

Q.2 Gross Profit margin of Singer India Ltd?
Singer India Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.8% for FY-2025, which is above its 5-year median of 2.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Singer India Ltd?
Singer India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.39% for FY-2025, which is in line with its 5-year median of 1.39% indicating stable margins.

Q.4 Net Profit Margin of Singer India Ltd?
Singer India Ltd Net Profit Margin is 1.71% for FY-2025, is in line with its 5-year median of 1.71%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 2.8 2.6
Operating Profit Margin (%) 1.39 1.39
Net Profit Margin (%) 1.71 1.71

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Singer India Ltd?
Singer India Ltd Return on Asset is 3.07%, which is below its 5-year historical median of 4.27%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Singer India Ltd?
Singer India Ltd Return on capital employed is 6.93% for FY-2025, which is below its 5-year historical median of 11.1%. 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 Singer India Ltd?
Singer India Ltd Return on equity is 5.06% for FY-2025, which is below its 5-year historical median of 7.81%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Singer India Ltd?
Singer India Ltd Cash conversion cycle is 60 days, above its 5-year historical median of 46 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) 1.83 2.36
ROE (%) 5.06 7.81
ROCE (%) 6.93 11.1
Cash Conversion Cycle 60 days 46 days

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

Q.9 Debt to Equity ratio of Singer India Ltd?
Singer India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.15, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Singer India Ltd?
Singer India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Singer India Ltd?

Q.1 Promoter shareholding and pledge status of Singer India Ltd?
Promoters hold 30.49% of the Singer India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Singer India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Singer India Ltd vs industry peers?
Singer India Ltd revenue CAGR is -0.88%, compared to the industry median CAGR of 10.02%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 1.5 10
Gross Profit Growth (%) 33.3 9.9
Operating Profit Growth (%) 200 8.3
Net Profit Growth (%) 75 5.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.83 1.4
ROE (%) 5.06 9.35
ROCE (%) 6.93 12.68
Cash Conversion Cycle (days) 60.26 51

Valuation & price assessment

Q.1 Stock return of Singer India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
8% 9% -2.8% 14.5%
Q.2 Valuation ratios of Singer India Ltd vs historical?
The current P/E ratio of 41.19 is lower than its historical median of 55.07, 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 41.19 55.07 51.67
Price to Book 2.62 3.70 5.85
Price to Sales 0.88 0.95 2.78
EV to EBITDA 19 31.21 24.89

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