Sarla Performance Fibers Limited (SARLAPOLY) AI Stock Analysis

• Market Cap: ₹8.28B
• Dividend Yield: 3%
• Average Volume (3M): 14.54K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.19
• Revenue Growth: 2.44%
• EPS Growth: 57.68%
• Country: IN
• Employees: 397
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.68
• Shares Outstanding: 83,503,000
• 10 Day Avg. Volume: 12,294
• 30 Day Avg. Volume: 14,543
• 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: ₹111.00
• Price Target Upside: 15.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ₹111.00 ▲(15.32% Upside)

Sarla Performance Fibers Limited's stock score is driven by solid financial performance and attractive valuation. However, technical indicators suggest potential bearish momentum, which tempers the overall score. The company's financial health is strong, but careful management of leverage and improvement in profitability are necessary for future growth.

Sarla Performance Fibers Limited Business Overview & Revenue Model

Company Description

Sarla Performance Fibers Limited manufactures and sells yarns in India and internationally. The company operates through two segments, Manufacturing of Yarn and Generation of Wind Power. It offers textured polyester, textured nylon stretch, high bulk textured polyester, high tenacity, covered, and dyed yarns, as well as textured sewing and specialty sewing threads. The company also owns wind power capacity of 14.75 MW in Maharashtra, Gujarat, and Madhya Pradesh. It exports its products to approximately 40 countries, including European countries, such as Italy, Spain, Romania, Turkey, the United Kingdom, Portugal, etc.; Central and North America; South America comprising Brazil; and Asian countries comprising China, Vietnam, Thailand, Hong Kong, etc., as well as Jordan and Canada. The company was formerly known as Sarla Polyester Limited and changed its name to Sarla Performance Fibers Limited in 2006. Sarla Performance Fibers Limited was incorporated in 1993 and is headquartered in Mumbai, India.

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: 96.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 96.25 is below the 20-day moving average (MA) of 101.17, below the 50-day MA of 106.96, and below the 200-day MA of 99.28, indicating a bearish trend. The MACD of -1.80 indicates Positive momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 13.83 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	₹15.52B	22.88	10.78%	0.12%	17.40%	6.49%
SARLAPOLY	68 Neutral	₹8.28B	12.16	―	3.00%	2.44%	57.68%
DECCANCE	64 Neutral	₹15.22B	75.85	1.04%	0.06%	-35.17%	-22.63%
NELCAST	63 Neutral	₹12.01B	28.72	6.74%	0.36%	0.72%	-24.19%
INDORAMA	54 Neutral	₹14.28B	19.47	0.38%	―	14.14%	―
SUTLEJTEX	45 Neutral	₹5.75B	-6.60	-7.64%	―	-1.25%	25.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%