Suryalakshmi Cotton Mills Ltd Stock Analysis

BSE: 521200 | NSE: SURYALAXMI | Textile | Small Cap

BSE Share Price May 18, 16:07
69.90 3.90 (5.91%)

DeciZen - Make an Informed Decision on Suryalakshmi Cotton

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

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

FAQs

1. Is Suryalakshmi Cotton Mills Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Suryalakshmi Cotton Mills Ltd is a average quality company.

2. Is Suryalakshmi Cotton Mills Ltd undervalued or overvalued?

The key valuation ratios of Suryalakshmi Cotton Mills Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Suryalakshmi Cotton Mills Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Suryalakshmi Cotton Mills 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 Suryalakshmi Cotton:

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.
Suryalakshmi Cotton Mills Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 10.1%10.3%5.7%5.7%8.2%6.6%4.6%2.2%0.3%0.9%-
Value Creation Index -0.3-0.3-0.6-0.6-0.4-0.5-0.7-0.8-1.0-0.9-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 669705702705760777761742597488778
YoY Gr. Rt. %-5.5%-0.5%0.5%7.8%2.3%-2.1%-2.5%-19.5%-18.3%-
Adj EPS 19.722.35.67.418.210.91.8-7.1-14-12.518.3
YoY Gr. Rt. %-13.3%-74.9%31.8%147.4%-40.4%-83.4%-490.1%NANA-
BVPS (₹) 123141.5147.1141.3156.1165.7167.4160.7140.9139.1133.2
Adj Net Profit 28.632.48.112.330.418.13-11.8-23.3-20.834
Cash Flow from Ops. 78.892.477.177.968.686.52978.164.933.4-
Debt/CF from Ops. 4.53.84.33.85.44.313.44.54.99.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -3.4%-8.5%-13.8%-18.3%
Adj EPS -195.1%-192.7%-290.3%NA
BVPS 1.4-2.3-6-1.2
Share Price 1.4% -9.1% 30.9% 49.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 16.816.53.23.99.35.91.1-4.3-9.2-8.913.4
Op. Profit Mgn % 12.414.29.910.612.812.48.65.74.15.710.2
Net Profit Mgn % 4.34.61.21.742.30.4-1.6-3.9-4.34.4
Debt to Equity 1.91.71.51.21.41.31.41.31.31.30.4
Working Cap Days 144136142148154148168177209256165
Cash Conv. Cycle 85858382867891909910551

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 13.40%

Sales growth is good in last 4 quarters at 100.15%

Sales growth has been subdued in last 3 years -13.75%

Net Profit has been subdued in last 3 years -290.33%

Debt to equity has increased versus last 3 years average to 1.33

Latest Financials - Suryalakshmi Cotton Mills Ltd.

Standalone Consolidated
TTM EPS (₹) 18.3 16.2
TTM Sales (₹ Cr.) 778 727
BVPS (₹.) 133.2 0
Reserves (₹ Cr.) 232 190
P/BV 0.50 0.00
PE 3.61 4.08
From the Market
52 Week Low / High (₹) 42.85 / 98.90
All Time Low / High (₹) 1.62 / 270.00
Market Cap (₹ Cr.) 124
Equity (₹ Cr.) 18.8
Face Value (₹) 10
Industry PE 13.4

Management X-Ray of Suryalakshmi Cotton :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *14.9114.9114.9114.9114.9167.5967.5967.5967.5955.01
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Suryalakshmi Cotton Mills Ltd

L N Agarwal started Suryalakshmi Cotton Mills in the year 1962, with 6,000 spindles to manufacture world class cotton and blended yarns, with a vision and commitment to establish the company as a leading enterprise in the textile industry. The company has, as a result, grown multifold in just four decades and also established the state of the art denim manufacturing plant having a capacity of 30 million meters per annum.

Today Suryalakshmi's yarn and rope dyed denim are acknowledged as the finest across international markets.The company has registered a growth of over 600% in the last decade alone.

Suryalakshmi's ongoing programme of modernisation and higher production Capacity has resulted in its denim production from 10 million meters to 30 million meters per annum. While yarn production capacity has also increased in multifold.

Suryalakshmi's denim plant at Ramtek near Nagpur, Maharashtra is equipped with the state of the art machines to produce Rope dyed denim. The plant has a capacity to produce 30 million meters of denim per annum.  Suryalakshmi's denim plant ranks among the best in the world. The blow room line, cards and draw frames are from Trutzschler, Autocore open end are of schalafhorst. Ball warping Machines and Long Chain Beamers are from Reed Chatwood Inc. and McCoy Ellison. Rope Dyeing Machine is from KTM, USA. The finishing range is from Monforts. The company has airjet looms of Nissan, Toyoda, Tsudakoma and Picanol.

Complete harmony is present not only across width of the fabric but right through the different batches. Fabric enriched by its excellent gradation. All this is made possible through our technologically superior machinery. 

In 2010 Suryalakshmi alloted Rs 150 crore for expansion; to enter power sector. In 2012 the Company's 25 MW Captive Power Plant at its Denim Division near Ramtek commenced operations.

Product range of the company includes:

The company has over 300 different varieties of denim to offer. Other than the basics, the product range can be broadly classified into Silky, Streaky, Ring, Cross hatch, Blends, Stretch, SL magic, Trends and last but not the least a wide range in Shirting denim fabrics.

Denim 

  • Basics
  • Blends
  • Silky
  • Stretch
  • Streaky Ring
  • SL magic
  • Cross Hatch
  • Trends

Spinning

The company has an exciting product range in the counts 16s Ne to 40s Ne.100 % cotton combed yarns

Achievements/ recognition:-

  • An IS /ISO 9001:2000 certified company
  • Suryalakshmi Cotton Mills is recognized as an Export House by the Government of India
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