S.P. Apparels Limited
S.P. Apparels Limited Fundamental Analysis
S.P. Apparels Limited (SPAL.NS) shows moderate financial fundamentals with a PE ratio of 15.92, profit margin of 6.99%, and ROE of 13.28%. The company generates $16.1B in annual revenue with strong year-over-year growth of 35.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SPAL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSPAL.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateSPAL.NS shows balanced valuation metrics.
Growth Score
ModerateSPAL.NS shows steady but slowing expansion.
Financial Health Score
ExcellentSPAL.NS maintains a strong and stable balance sheet.
Profitability Score
WeakSPAL.NS struggles to sustain strong margins.
Key Financial Metrics
Is SPAL.NS Expensive or Cheap?
P/E Ratio
SPAL.NS trades at 15.92 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SPAL.NS's PEG of 7.79 indicates potential overvaluation.
Price to Book
The market values S.P. Apparels Limited at 2.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.92 times EBITDA. This is generally considered low.
How Well Does SPAL.NS Make Money?
Net Profit Margin
For every $100 in sales, S.P. Apparels Limited keeps $6.99 as profit after all expenses.
Operating Margin
Core operations generate 11.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.28 in profit for every $100 of shareholder equity.
ROA
S.P. Apparels Limited generates $7.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
S.P. Apparels Limited generates limited operating cash flow of $1.26B, signaling weaker underlying cash strength.
Free Cash Flow
S.P. Apparels Limited produces free cash flow of $591.07M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $23.56 in free cash annually.
FCF Yield
SPAL.NS converts 3.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How SPAL.NS Stacks Against Its Sector Peers
| Metric | SPAL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.92 | 23.82 | Better (Cheaper) |
| ROE | 13.28% | 1156.00% | Weak |
| Net Margin | 6.99% | -2457.00% (disorted) | Weak |
| Debt/Equity | 0.45 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 1.37 | 2.54 | Neutral |
| ROA | 7.38% | -34202.00% (disorted) | Weak |
SPAL.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 S.P. Apparels Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
87.10%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
107.44%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-45.04%
Industry Style: Cyclical, Growth, Discretionary
Declining