Sarla Performance Fibers Limited
Sarla Performance Fibers Limited Fundamental Analysis
Sarla Performance Fibers Limited (SARLAPOLY.NS) shows strong financial fundamentals with a PE ratio of 11.76, profit margin of 14.83%, and ROE of 12.09%. The company generates $4.0B in annual revenue with strong year-over-year growth of 14.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SARLAPOLY.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSARLAPOLY.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSARLAPOLY.NS trades at attractive valuation levels.
Growth Score
ExcellentSARLAPOLY.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSARLAPOLY.NS maintains a strong and stable balance sheet.
Profitability Score
WeakSARLAPOLY.NS struggles to sustain strong margins.
Key Financial Metrics
Is SARLAPOLY.NS Expensive or Cheap?
P/E Ratio
SARLAPOLY.NS trades at 11.76 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SARLAPOLY.NS's PEG of -0.92 indicates potential undervaluation.
Price to Book
The market values Sarla Performance Fibers Limited at 1.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.09 times EBITDA. This is generally considered low.
How Well Does SARLAPOLY.NS Make Money?
Net Profit Margin
For every $100 in sales, Sarla Performance Fibers Limited keeps $14.83 as profit after all expenses.
Operating Margin
Core operations generate 18.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.09 in profit for every $100 of shareholder equity.
ROA
Sarla Performance Fibers Limited generates $7.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sarla Performance Fibers Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Sarla Performance Fibers Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
SARLAPOLY.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.92
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SARLAPOLY.NS Stacks Against Its Sector Peers
| Metric | SARLAPOLY.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.76 | 24.85 | Better (Cheaper) |
| ROE | 12.09% | 1165.00% | Weak |
| Net Margin | 14.83% | 749.00% | Weak |
| Debt/Equity | 0.33 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 1.25 | 9.23 | Neutral |
| ROA | 7.62% | 1271.00% | Weak |
SARLAPOLY.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sarla Performance Fibers Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.40%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
112.46%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
38.99%
Industry Style: Cyclical, Growth, Discretionary
High Growth