S.P. Apparels Ltd. (SPAL) AI Stock Analysis

• Market Cap: ₹17.81B
• Dividend Yield: 0.28%
• Average Volume (3M): 1.58K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.02
• Revenue Growth: 34.25%
• EPS Growth: 28.44%
• Country: IN
• Employees: 8,409
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 13.80
• Shares Outstanding: 25,092,600
• 10 Day Avg. Volume: 722
• 30 Day Avg. Volume: 1,585
• PEG Ratio: 3.06
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -46.47
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹900.00 ▲(26.06% Upside)

S.P. Apparels Ltd. demonstrates strong financial performance with impressive revenue and profit growth, supported by efficient operations. However, technical indicators suggest the stock is overbought, and valuation metrics indicate moderate pricing. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and effective sales strategies, supporting long-term business sustainability.

Margin Sustainability

Improved margins reflect efficient cost management and operational efficiency, enhancing profitability and competitive positioning.

Balance Sheet Health

A solid balance sheet with moderate leverage and a strong equity base provides financial stability and flexibility for future growth.

Negative Factors

Cash Flow Management

Negative free cash flow highlights potential liquidity constraints, necessitating improved cash management to support ongoing operations.

Liquidity Constraints

Reduced operating cash flow relative to net income suggests liquidity challenges, potentially impacting the company's ability to fund operations.

Capital Expenditure Impact

High capital expenditures can strain cash reserves, affecting the company's ability to invest in growth opportunities and manage debt.

S.P. Apparels Ltd. Business Overview & Revenue Model

Company Description

S.P. Apparels Limited engages in the manufacture and sale of knitted garments for infants and children in India. It also manufactures, distributes, and markets adult menswear, such as shirts, polo shirts, T-shirts, trousers, jeans, sweaters, jackets, vests, briefs, boxer shorts, and socks under the Crocodile brand; and women's essential garments under the Natalia brand. The company also exports its products. S.P. Apparels Limited was founded in 1988 and is based in Tirupur, India.

How the Company Makes Money

S.P. Apparels Ltd. generates revenue primarily through the production and sale of knitted garments to various retailers and brands worldwide. The company operates on a B2B (business-to-business) model, where it partners with global fashion brands and retailers to manufacture clothing according to their specifications. Key revenue streams include bulk orders from these partners, contract manufacturing agreements, and private label production. Additionally, SPAL may benefit from economies of scale through its extensive manufacturing capabilities, allowing it to reduce costs and increase profit margins. Strategic partnerships with international brands not only help in securing consistent orders but also enhance the company's market presence, further contributing to its earnings.

S.P. Apparels Ltd. Financial Statement Overview

Summary

S.P. Apparels Ltd. shows strong revenue and profit growth with efficient operations and a healthy balance sheet. However, cash flow management issues due to negative free cash flow and liquidity constraints slightly dampen the overall financial performance.

Income Statement

S.P. Apparels Ltd. demonstrated strong revenue growth of 35.2% in the latest year, with consistent improvements in gross and net profit margins over the past five years. The gross profit margin increased to 58.5% and the net profit margin to 6.8% in 2025, reflecting efficient cost management and robust sales performance. EBIT and EBITDA margins also showed positive trends, indicating healthy operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.44 in 2025, suggesting moderate leverage. Return on equity improved to 11.1%, highlighting effective use of shareholder capital. The equity ratio stands at 58.8%, indicating a stable financial foundation with a reasonable level of assets financed by equity.

Cash Flow

Cash flow analysis reveals challenges in free cash flow, which turned negative in 2025 due to increased capital expenditures. The operating cash flow to net income ratio decreased to 0.47, signaling potential liquidity constraints. However, previous years showed stability, emphasizing the need for careful cash management moving forward.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.53B	13.95B	10.31B	10.27B	8.22B	6.32B
Gross Profit	8.87B	8.16B	5.04B	4.60B	3.95B	3.05B
EBITDA	2.18B	2.00B	1.69B	1.59B	1.60B	1.04B
Net Income	977.11M	951.02M	896.25M	825.12M	846.93M	431.73M
Balance Sheet
Total Assets	0.00	14.56B	11.42B	10.97B	10.62B	9.12B
Cash, Cash Equivalents and Short-Term Investments	352.75M	415.15M	1.29B	1.33B	621.27M	411.77M
Total Debt	0.00	3.81B	2.03B	2.45B	2.31B	1.94B
Total Liabilities	-8.50B	6.06B	3.84B	4.30B	4.31B	3.60B
Stockholders Equity	8.50B	8.56B	7.64B	6.74B	6.38B	5.58B
Cash Flow
Free Cash Flow	0.00	-378.25M	242.25M	1.64B	-64.48M	362.07M
Operating Cash Flow	0.00	444.18M	792.04M	2.16B	268.93M	805.04M
Investing Cash Flow	0.00	-1.77B	62.13M	-1.60B	-291.86M	-207.63M
Financing Cash Flow	0.00	824.99M	-667.83M	-478.23M	236.28M	-423.77M

S.P. Apparels Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 713.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPAL, the sentiment is Negative. The current price of 713.95 is below the 20-day moving average (MA) of 736.51, below the 50-day MA of 735.04, and below the 200-day MA of 763.26, indicating a bearish trend. The MACD of -11.72 indicates Positive momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 41.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SPAL.

S.P. Apparels Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MONTECARLO	73 Outperform	₹15.09B	17.33	―	2.83%	8.10%	59.25%
LUMAXIND	72 Outperform	₹53.53B	35.37	―	0.62%	26.75%	20.28%
CANTABIL	70 Outperform	₹21.81B	27.76	―	0.39%	19.90%	27.94%
SPAL	67 Neutral	₹17.81B	16.21	―	0.28%	34.25%	28.44%
KALAMANDIR	66 Neutral	₹24.02B	17.63	―	1.31%	23.15%	47.46%
JAYBARMARU	63 Neutral	₹9.42B	15.37	―	0.74%	4.76%	150.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%