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Suryalakshmi Cotton Mills Ltd. Stock Analysis

Small Cap
Evaluated by 191 users | BSE: 521200 | NSE: SURYALAXMI |
Textile
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...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.72%10.12%10.25%5.69%5.71%8.22%6.56%4.6%2.23%0.3%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 601669705702705760777761742597
Y-o-Y Gr. Rt.-11.3%5.5%-0.5%0.5%7.8%2.3%-2.1%-2.5%-19.5%
Adjusted EPS (Rs.) 25.9419.6822.35.597.3718.2310.871.81-7.06-14
Y-o-Y Gr. Rt.--24.1%13.3%-74.9%31.8%147.4%-40.4%-83.4%-490.1%NA
Book Value per Share (Rs.) 103.89122.96141.53147.07141.28156.06165.67167.39160.72140.87
Adjusted Net Profit 34.728.632.48.112.330.418.13-11.8-23.3
Net Op. Cash Flow (Rs. Cr.) 22.178.892.477.177.968.686.52978.164.9
Debt to Cash Flow from Ops 13.034.453.774.33.85.414.2713.414.54.88
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Suryalakshmi Cotton Mills Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -0.1%-3.3%-8.4%-19.5%
Adjusted EPS -193.4%-213.7%-208.8%NA
Book Value per Share 3.4-0.1-5.3-12.4
Share Price -11.3% -30.4% -42.8% -2.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 25.5316.8416.543.153.99.255.91.08-4.28-9.22
Operating Profit Margin (%) 14.1912.4414.199.9410.5812.812.378.555.694.13
Net Profit Margin (%) 5.774.274.591.161.7442.330.4-1.59-3.91
Debt to Equity 1.951.91.681.521.211.381.331.381.31.34
Working Capital Days 136144136142148154148168177209
Cash Conversion Cycle 71858583828678919099
Entity Percentage Holding
Promoters 55.94%
Institutions 0.40%
Non-Institutions 43.65%
Pledged *12.2312.2312.2312.2312.2314.9114.9114.9114.9114.91
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Suryalakshmi Cotton Mills Ltd.'s performance infers:

Suryalakshmi Cotton Mills Ltd. earnings have declined by -213.7%, whereas share price has depreciated -30.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Suryalakshmi Cotton Mills Ltd. share prices over the last 10 years. Here is what we found out:

Suryalakshmi Cotton Mills Ltd. share price has depreciated -18.1% annually over the past ten years.

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

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
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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