Sarla Performance Fibers Ltd Stock Analysis

BSE: 526885 | NSE: SARLAPOLY | Textile - Manmade Fibres | Small Cap

BSE Share Price 28-Sep-2023 10:42
50.50 0.35 (0.70%)

DeciZen - Make an Informed Decision on Sarla Perform. Fiber

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Sarla Perform. Fiber Price Chart

P/E Ratio (SA):
15.92
Market Cap:
418.8 Cr.
52-wk low:
32.4
52-wk high:
60
Bole Toh?

1. Is Sarla Performance Fibers Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Sarla Performance Fibers Ltd is a below average quality company.

2. Is Sarla Performance Fibers Ltd undervalued or overvalued?

The key valuation ratios of Sarla Performance Fibers Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Sarla Performance Fibers Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Sarla Performance Fibers Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sarla Perform. Fiber:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sarla Performance Fibers Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 11.6%11.9%13.4%10.3%9.4%7%8.3%3.4%9.8%6.2%-
Value Creation Index -0.2-0.20.0-0.3-0.3-0.5-0.4-0.8-0.3-0.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 246267243263272316298251429387351
YoY Gr. Rt. %-8.5%-8.8%7.9%3.7%16.2%-5.7%-15.7%70.6%-9.8%-
Adj EPS 33.45.14.34341.55.93.73.2
YoY Gr. Rt. %-13.4%49.6%-15.8%-7.3%-24%33.9%-62.8%294%-38.2%-
BVPS (₹) 17.72327.131.935.538.542.243.850.151.652.6
Adj Net Profit 20.828.342.335.733.125.133.712.549.330.526
Cash Flow from Ops. 25.1-5.949.264.933.612.439.343.339106-
Debt/CF from Ops. 4.1-20.82.92.13.312.34.33.43.41-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.2%7.3%9%-9.8%
Adj EPS 2.2%-1.6%-3.3%-38.2%
BVPS12.6%7.8%7%3%
Share Price 11.5% 9.5% 38.8% 6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on Equity % 18.11820.214.511.88.1103.512.67.26
Op. Profit Mgn % 15.316.920.621.919.814.915.821.818.915.712.9
Net Profit Mgn % 8.410.617.413.612.27.911.3511.57.97.5
Debt to Equity 0.80.60.60.50.40.50.50.40.30.2-
Working Cap Days 1721912432462802842842981962000
Cash Conv. Cycle 1321191291231271221381721151220

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 6.00%

Sales growth has been subdued in last 3 years 9.02%

Net Profit has been subdued in last 3 years -3.25%

Sales growth is not so good in last 4 quarters at -22.23%

Latest Financials - Sarla Performance Fibers Ltd.

Standalone Consolidated
TTM EPS (₹) 3.2 2.2
TTM Sales (₹ Cr.) 351 352
BVPS (₹.) 52.6 48.1
Reserves (₹ Cr.) 431 393
P/BV 0.95 1.04
PE 15.92 23.02
From the Market
52 Week Low / High (₹) 32.40 / 59.95
All Time Low / High (₹) 0.08 / 91.45
Market Cap (₹ Cr.) 419
Equity (₹ Cr.) 8.4
Face Value (₹) 1
Industry PE 16.1

Management X-Ray of Sarla Perform. Fiber :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Sarla Perform. Fiber

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Sarla Performance Fibers Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sarla Perform. Fiber on 28-Sep-2023 10:42 is : 50.50.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Sep-2023 10:42 the market cap of Sarla Perform. Fiber stood at ₹ 418.8.
The latest PE ratio of Sarla Perform. Fiber as of 28-Sep-2023 10:42 is 15.92.
The latest PB ratio of Sarla Perform. Fiber as of 28-Sep-2023 10:42 is 0.95
The 52-week high of Sarla Perform. Fiber is ₹ 59.95 and the 52-week low is ₹ 32.40.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Sarla Perform. Fiber is ₹ 351.4 ( Cr.) .

About Sarla Performance Fibers Ltd

Sarla Performance Fibers, formerly Sarla Polyester Ltd, was started by Krishna Jhunjhunwala as a 100% Export Oriented Unit (EOU) manufacturing polyester, polyamide (nylon) texturised yarns & conventional/air covered Lycra/Spandex yarns in 1995. It is amongst the leading manufacturer-exporters from India, exporting their products around the globe. 

Spinning and weaving the entire world into their company. As an export oriented company, Sarla Performance Fibers has entered the following markets:

  • Middle East – Turkey, Jordan, Dubai, Egypt, Israel, Iran.
  • Europe – Italy, Spain, Portugal, Germany, UK, Sweden, Estonia, Ireland, Greece,   Romania, Bulgaria, Poland, Lithuania
  • USA 
  • Central America – Venezuela, Mexico, Honduras
  • South America – Brazil, Argentina, Chile
  • Africa – Morocco, Kenya, Madagascar, South Africa
  • Far East – Indonesia, China
  • Neighbouring countries – Bangladesh, Srilanka. 

In order to cater the market in central America they have set up a manufacturing plant in Honduras under the name of Savitex (A joint venture)

The group Companies:

Savitex- Savitex is joint venture between Sarla Performance Fibers and its Canadian Distributors Viafil. It is a vertically integrated one-of-its-kind sewing thread operation in the world. Having its manufacturing base in central America it fulfills the recently introduced Cafta criteria.  All garment majors like Hanes, Fruit of the Loom, Gildan, Russel, Delta Apparel, etc have huge garment manufacturing facilities in this region and can avail of prompt service and delivery for all their thread needs from Savitex.

Zabatex India - Zabatex India is a joint venture between a Canadian company Zabatex Inc and the promoters of Sarla Performance Fibers which manufactures the following

  •  Knitted elastics for apparel & industrial applications
  •  Woven elastics for sportswear, lightweight industrial, and select apparel applications
  • Narrow fabrics for swim wear, apparel, & select industrial applications

Sarla Performance Fibers specializes in yarn for narrow fabrics and hence Zabatex India has practically in-house availability of this essential raw material to provide all kinds of quality narrow fabrics /elastics to garment manufacturers worldwide

Product range of the company includes:

  • Polyester Textured Yarn
  • Polyamide 6 and 66 yarn (Nylon) 
  • Polyester Sewing Thread
  • Covered Yarn
  • High Tenacity yarn
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