Sutlej Textiles And Industries Ltd Stock Analysis

BSE: 532782 | NSE: SUTLEJTEX | Textile - Spinning | Small Cap

BSE Share Price May 23, 18:01
66.95 -0.70 (-1.03%)

DeciZen - Make an Informed Decision on Sutlej Textiles&Inds

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is Sutlej Textiles And Industries Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Sutlej Textiles And Industries Ltd is a below average quality company.

2. Is Sutlej Textiles And Industries Ltd undervalued or overvalued?

The key valuation ratios of Sutlej Textiles And Industries Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Sutlej Textiles And Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Sutlej Textiles And Industries Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sutlej Textiles&Inds:

Analysis of Financial Track Record

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.
Sutlej Textiles And Industries 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'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 0%0%0%0%0%0%6.1%5.1%3.8%0.7%-
Value Creation Index NANANANANANA-0.6-0.6-0.7-1.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 0000002,4762,6142,4171,8843,076
YoY Gr. Rt. %-NANANANANANA5.6%-7.5%-22%-
Adj EPS 0000004.83.52.3-0.89.2
YoY Gr. Rt. %-NANANANANANA-26%-35.1%-136.2%-
BVPS (₹) 00000055.457.558.658.367.1
Adj Net Profit 00000078.257.937.5-13.5150
Cash Flow from Ops. 00000015721731988.7-
Debt/CF from Ops. 0000006.64.32.710.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANA-8.7%-22%
Adj EPS NANA-155.8%-136.2%
BVPS 001.7-0.5
Share Price 19.9% -5.6% 23% 34.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 0000008.66.33.9-1.414.6
Op. Profit Mgn % 000000108.27.55.512.3
Net Profit Mgn % 0000003.22.21.6-0.74.9
Debt to Equity 0000001.210.910.3
Working Cap Days 0000000149144172120
Cash Conv. Cycle 000000010310211934

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 14.60%

Debt to equity has declined versus last 3 years average to 0.95

Sales growth is good in last 4 quarters at 88.56%

Sales growth has been subdued in last 3 years -8.71%

Net Profit has been subdued in last 3 years -155.83%

Latest Financials - Sutlej Textiles And Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 9.5 9.2
TTM Sales (₹ Cr.) 3,042 3,076
BVPS (₹.) 69 67.1
Reserves (₹ Cr.) 1,114 1,084
P/BV 0.98 1.01
PE 7.12 7.36
From the Market
52 Week Low / High (₹) 47.10 / 104.85
All Time Low / High (₹) 1.80 / 115.00
Market Cap (₹ Cr.) 1,108
Equity (₹ Cr.) 16.4
Face Value (₹) 1
Industry PE 12.2

Management X-Ray of Sutlej Textiles&Inds :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *2.872.872.872.872.872.872.872.860.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Sutlej Textiles And Industries Ltd

Sutlej Textiles and Industries Limited was incorporated on June 22, 2005 and was created out of a corporate restructuring exercise in which the textiles divisions of Sutlej Industries Limited (SIL) and Damanganga Processors Limited (DPL) were demerged into Sutlej with effect from July 1, 2005. Sutlej is a part of the KK Birla Group of companies. It has inherited the legacy of SIL, which was promoted by late G D Birla in 1934 under the name of Sutlej Cotton Mills Limited, which was subsequently changed to Sutlej Industries Limited in 1995. Dr K K Birla is the chairman of Sutlej and is also the chairman of the KK Birla Group of companies.

Sutlej is also one of the prominent manufacturers of cotton and cotton blended dyed and melange yarn in the country. The company has two major units producing synthetic and blended yarns and 100% yarns. It manufactures cotton goods including drills, saris, bed sheets, towels and twills. It is an integrated player in the textiles industry with a value chain extending from yarn at one end and extending to fabric, garments and home textiles at the other, enabling it to address opportunities in every intervening segment.

The company’s manufacturing unit are located at Kathua in Jammu & Kashmir, Bhawanimandi in Rajasthan and Daheli in Gujarat.

Historical Background:

Originally, SIL was set up with a composite textile mill at Okara, now in Pakistan. After the partition in 1947, the factory at Okara was seized by the government of Pakistan. In the year 1963, SIL established Rajasthan Textile Mills (RTM) at Bhawanimandi, District Jhalawar, Rajasthan, to produce cotton yarn. In 1970, it diversified into synthetic blended yarn.

In 1981, it leased a spinning unit called Chenab Textile Mills (CTM) from Texmaco Ltd. situated at Kathua (Jammu & Kashmir), manufacturing cotton yarn and synthetic yarn. Subsequently in 1997, SIL purchased all the assets of CTM.  

In 2001, SIL forward integrated its operations by establishing Damanganga Fabrics (DGF) at Daheli in Gujarat to manufacture and process fabrics.

Sutlej has recently installed facilities to manufacture home furnishings and garments at DGF.

Activities of the company:

1) Spinning: Sutlej is the biggest producer and is one of the largest exporters of value-added synthetic and blended dyed spun yarn in the country. It is also one of the prominent manufacturers of cotton and cotton blended dyed and melange yarn in the country. 

Sutlej is a one-stop-shop for all types of spun yarns for its customers because of a broad product range. The company is a pioneer in developing a large number of blends and shades to meet the ever changing requirement of its customers.

2) Weaving: Sutlej manufactures woven fabrics, which are mainly used for suiting and trousers. Sutlej’s strength to offer a vast product range stems from its ability to blend various yarns to ensure the right texture, style and above all, the right value-for-money products to its clients.

It has state-of-the-art technology with computer aided designing equipments, enabling wider range of design executed with precision, ensuring wider choices and lower.

3) The Home Textiles Project: The Home Textiles project has started commercial production since July 2006 to produce 1.8 million metres of home furnishing fabrics per annum.

The product range comprises furnishing fabrics and made-ups of Jacquard and Dobby weaves of various types of fibre like cotton, polyester, rayon blends, chenille, flax, silk, jute, linen and other blends. The product range also includes curtain fabrics, upholstery fabrics, seats and seat covers; mattress covers, bed spreads and covers; quilts and quilting materials; table linen and kitchen linen, etc. It offers further value-added fabrics in terms of hand painted fabrics and embroidered fabrics.

4) Garments: The garments production unit has commenced commercial production in October, 2006 with a capacity of 1.5 million trousers per annum.

Clientele:

Its customers include ITC, Pantaloon, Westside, Siyaram's, Arvind, Grasim.-Monte Carlo, Harry's Collection, Donear, Digjam and Raymond, Arrow (US), Penny (US), Marks & Spencer (UK), JC, Next (UK), B H S (UK), ASDA (UK) and Carrefour (France). The company's plants are located at Rajasthan, Jammu & Kashmir and Gujarat.

Achievements:

  • Sutlej is the biggest producer and is one of the largest exporters of value-added synthetic and blended dyed spun yarn in the country
  • It is also amongst few exclusive spinners in India for specialty yarns such as Modal, Lyocell and Tencel in the country.
  • The company has emerged as a preferred supplier of fabrics on account of its colours, blends, textures and finishes in more than 26 countries.
  • Sutlej started a pilot plant in the fourth quarter of 2005-2006 to test market its products. The trousers produced and exported have been well received. Sutlej is expanding its capacities to produce suits and blazers, as well.
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