BSE: 532782 | NSE: SUTLEJTEX | Textile - Spinning | Small Cap
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 Semi Strong which suggest that the price of Sutlej Textiles And Industries Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘ
Value Creation Index Colour Code Guide ⓘ
|ROCE % ⓘ||0%||0%||0%||0%||0%||6.1%||5.1%||3.8%||0.7%||9.4%||-|
|Value Creation Index ⓘ||NA||NA||NA||NA||NA||-0.6||-0.6||-0.7||-1.0||-0.3||-|
Growth Parameters ⓘ
Growth Parameters Colour Code Guide ⓘ
|YoY Gr. Rt. %||-||NA||NA||NA||NA||NA||5.6%||-7.5%||-22%||63.3%||-|
|Adj EPS ⓘ||0||0||0||0||0||4.8||3.5||2.3||-0.8||9.1||2.3|
|YoY Gr. Rt. %||-||NA||NA||NA||NA||NA||-26%||-35.1%||-136.2%||NA||-|
|BVPS (₹) ⓘ||0||0||0||0||0||55.4||57.5||58.6||58.3||67.2||67.7|
|Adj Net Profit ⓘ||0||0||0||0||0||78.2||57.9||37.5||-13.5||149||37|
|Cash Flow from Ops. ⓘ||0||0||0||0||0||157||217||319||88.7||95||-|
|Debt/CF from Ops. ⓘ||0||0||0||0||0||6.6||4.3||2.7||10.2||9.9||-|
CAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Adj EPS ⓘ||NA||NA||37.1%||NA|
Key Financial Parameters ⓘ
Performance Ratio Colour Code Guide ⓘ
|Return on Equity % ⓘ||0||0||0||0||0||8.6||6.3||3.9||-1.4||14.5||3.4|
|Op. Profit Mgn % ⓘ||0||0||0||0||0||10||8.2||7.5||5.5||12.3||8.5|
|Net Profit Mgn % ⓘ||0||0||0||0||0||3.2||2.2||1.6||-0.7||4.8||1.2|
|Debt to Equity ⓘ||0||0||0||0||0||1.2||1||0.9||1||0.9||0.2|
|Working Cap Days ⓘ||0||0||0||0||0||0||149||144||172||124||147|
|Cash Conv. Cycle ⓘ||0||0||0||0||0||0||103||102||119||89||35|
Net Profit is growing at healthy rate in last 3 years 37.07%
Debt to equity has declined versus last 3 years average to 0.86
Return on Equity has declined versus last 3 years average to 3.40%
Sales growth has been subdued in last 3 years 5.58%
Sales growth is not so good in last 4 quarters at 3.43%
|TTM EPS (₹)||1.4||2.3|
|TTM Sales (₹ Cr.)||3,039||3,074|
|BVPS (₹.) ⓘ||68.6||67.7|
|Reserves (₹ Cr.) ⓘ||1,107||1,093|
|From the Market|
|52 Week Low / High (₹)||38.25 / 78.20|
|All Time Low / High (₹)||1.80 / 115.00|
|Market Cap (₹ Cr.)||793|
|Equity (₹ Cr.)||16.4|
|Face Value (₹)||1|
|Industry PE ⓘ||19.6|
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 companyâ€™s manufacturing unit are located at Kathua in Jammu & Kashmir, Bhawanimandi in Rajasthan and Daheli in Gujarat.
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. Sutlejâ€™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.
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.