Sarla Performance Fibers Limited (SARLAPOLY) AI Stock Analysis

• Market Cap: ₹8.44B
• Dividend Yield: 2.94%
• Average Volume (3M): 21.31K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.22
• Revenue Growth: 2.44%
• EPS Growth: 57.68%
• Country: IN
• Employees: 397
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.68
• Shares Outstanding: 83,503,000
• 10 Day Avg. Volume: 17,797
• 30 Day Avg. Volume: 21,311
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹115.00
• Price Target Upside: 12.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ₹115.00 ▲(12.75% Upside)

Sarla Performance Fibers Limited scores a 68, driven by solid financial performance and reasonable valuation. The stock's technical indicators suggest weak momentum, which slightly offsets the positive financial and valuation aspects. Monitoring leverage and improving profit margins could enhance the company's financial health.

Sarla Performance Fibers Limited Business Overview & Revenue Model

Company Description

Sarla Performance Fibers Limited (SARLAPOLY) is an Indian company specializing in the production and distribution of high-performance synthetic yarns. The company operates in the textile and apparel sectors, providing a range of products including polyester and nylon yarns, which are used in various industries such as sportswear, activewear, and technical textiles. With a focus on innovation and quality, Sarla Performance Fibers Limited serves both domestic and international markets.

How the Company Makes Money

Sarla Performance Fibers Limited generates revenue primarily through the manufacturing and sale of synthetic yarns. The company produces polyester and nylon yarns, catering to a diverse range of applications in the textile industry. Its revenue streams include domestic sales within India and exports to international markets, leveraging its strong production capabilities and efficient supply chain. Additionally, the company benefits from partnerships with textile manufacturers and apparel brands, enhancing its distribution network and market reach. Sarla Performance Fibers Limited's commitment to quality and customization allows it to maintain competitive pricing and attract a loyal customer base.

Sarla Performance Fibers Limited Financial Statement Overview

Summary

Sarla Performance Fibers Limited shows solid financial performance with consistent revenue growth and efficient cash flow management. The balance sheet is stable with a healthy equity position, though leverage should be monitored. Improving net profit margins and optimizing cash flow conversion are areas for enhancement.

Income Statement

Sarla Performance Fibers Limited has demonstrated consistent revenue growth with a notable increase in revenue from 2024 to 2025. Gross profit margin improved significantly, reflecting effective cost management. However, the net profit margin, while positive, could be further enhanced to improve overall profitability.

Balance Sheet

The company's balance sheet shows a healthy equity position with a strong equity ratio, indicating financial stability. However, the debt-to-equity ratio suggests a moderate level of leverage that could pose risks if not managed properly. Return on equity is decent but has room for improvement.

Cash Flow

Operating cash flow has significantly increased, indicating strong cash generation capabilities. Free cash flow growth is positive, but the free cash flow to net income ratio suggests that net income conversion could be optimized. The company maintains a good operating cash flow to net income ratio, reflecting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.27B	4.27B	3.74B	3.83B	4.26B	2.58B
Gross Profit	2.13B	2.36B	1.31B	666.70M	915.78M	1.10B
EBITDA	1.12B	893.35M	787.30M	666.67M	942.82M	735.18M
Net Income	623.57M	623.57M	329.12M	213.39M	462.75M	262.58M
Balance Sheet
Total Assets	7.53B	7.53B	6.51B	5.80B	6.27B	5.85B
Cash, Cash Equivalents and Short-Term Investments	521.78M	521.78M	580.36M	406.01M	816.07M	994.59M
Total Debt	1.81B	1.81B	1.37B	1.09B	1.35B	1.49B
Total Liabilities	2.63B	2.63B	2.22B	1.85B	2.35B	2.40B
Stockholders Equity	4.90B	4.90B	4.28B	3.95B	3.88B	3.41B
Cash Flow
Free Cash Flow	0.00	418.51M	215.40M	554.46M	30.50M	164.30M
Operating Cash Flow	0.00	624.02M	310.18M	1.02B	366.31M	295.60M
Investing Cash Flow	0.00	-901.62M	-562.57M	-558.05M	-258.47M	309.50M
Financing Cash Flow	0.00	265.53M	238.44M	-455.05M	-176.23M	-561.90M

Sarla Performance Fibers Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 102.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SARLAPOLY, the sentiment is Negative. The current price of 102 is below the 20-day moving average (MA) of 105.12, below the 50-day MA of 111.09, and above the 200-day MA of 98.59, indicating a neutral trend. The MACD of -2.95 indicates Positive momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 12.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SARLAPOLY.

Sarla Performance Fibers Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HARIOMPIPE	76 Outperform	₹15.24B	22.76		0.12%	17.40%	6.94%
NELCAST	73 Outperform	₹12.88B	31.50		0.33%	0.72%	-24.19%
SARLAPOLY	68 Neutral	₹8.44B	12.26		2.94%	2.44%	57.68%
DECCANCE	64 Neutral	₹15.27B	77.18		0.27%	-35.17%	-22.63%
Sector *	62 Neutral	$10.28B	6.21	0.76%	2.84%	3.10%	-36.03%
INDORAMA	54 Neutral	₹13.94B	19.01		―	14.14%	―
SUTLEJTEX	49 Neutral	₹6.23B	―		2.53%	-1.25%	25.22%

Sarla Performance Fibers Limited Corporate Events

Sarla Performance Fibers Reports Strong Financial Results for FY 2025

Sarla Performance Fibers Limited announced its audited financial results for the quarter and year ending March 31, 2025. The company reported a total income from operations of INR 44,806.12 lakhs for the year, with a net profit after tax of INR 4,984.31 lakhs. The Board of Directors has recommended a dividend of INR 3 per equity share, with promoters waiving their rights to receive the dividend. This financial performance reflects the company’s stable position in the market and its commitment to shareholder returns.

Sarla Performance Fibers Approves Financial Results and Announces Leadership Changes

Sarla Performance Fibers Limited announced the approval of its audited financial results and statements for the fiscal year ending March 31, 2025, reflecting a stable financial performance with an unqualified audit opinion. The company also recommended a final dividend of ₹3 per share, with promoters waiving their rights to receive it, and made key leadership changes, including the appointment of a new Company Secretary and the designation change of Mr. Kanav Jhunjhunwala to Whole Time Director.

Sarla Performance Fibers Announces Financial Results and Key Appointments

Sarla Performance Fibers Limited announced the approval of its audited financial results and statements for the year ending March 31, 2025, with an unqualified audit opinion. The company also recommended a final dividend of ₹3 per share, with promoters waiving their rights to receive it. Additionally, the board approved the change of designation for Mr. Kanav Jhunjhunwala to Whole Time Director and appointed CS Kapil Raj Yadav as the new Company Secretary and Compliance Officer.

Sarla Performance Fibers Announces Financial Results and Management Changes

Sarla Performance Fibers Limited’s Board of Directors approved the audited financial results and statements for the fiscal year ending March 31, 2025, reflecting a stable financial position with an unqualified audit opinion. Additionally, the Board recommended a final dividend of ₹3 per equity share, with promoters waiving their rights to receive it, and announced key management changes including the appointment of a new Company Secretary and a change in the designation of Mr. Kanav Jhunjhunwala to Whole Time Director.

Sarla Performance Fibers Appoints New Company Secretary

Sarla Performance Fibers Limited has announced the appointment of Mr. Kapil Raj Yadav as the Company Secretary and Compliance Officer, effective April 25, 2025. This strategic appointment, approved by the Board of Directors, is in line with SEBI regulations and aims to strengthen the company’s compliance and governance framework. Mr. Yadav, who holds a postgraduate degree in Banking and Finance and has experience in secretarial practice and corporate laws, brings valuable expertise to the role.

Sarla Performance Fibers Limited Re-Appoints Key Auditors

Sarla Performance Fibers Limited has announced the re-appointment of key auditors, including the Secretarial Auditor, Internal Auditor, and Cost Auditor, for the upcoming financial years. This decision reflects the company’s commitment to maintaining robust financial and operational oversight, which is crucial for its strategic positioning and stakeholder confidence.

Sarla Performance Fibers Appoints New Whole-Time Director

Sarla Performance Fibers Limited has announced a change in the designation of Mr. Kanav Jhunjhunwala from Executive Director to Whole-Time Director for a five-year term starting April 25, 2025. This move, subject to shareholder approval, highlights the company’s strategic focus on leveraging Mr. Jhunjhunwala’s extensive experience in the textile industry and his successful track record in operational transformation to enhance organizational efficiency.