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

• Market Cap: ₹17.67B
• Dividend Yield: 0.28%
• Average Volume (3M): 1.58K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.08
• Revenue Growth: 34.25%
• EPS Growth: 28.44%
• Country: IN
• Employees: 8,409
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 10.80
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 43.1
• Revenue Forecast (FY): ₹15.82B

• Rating: 67 Neutral
• Price Target: ₹765.00 ▲(9.58% Upside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

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

Strong revenue growth

Sustained 35.2% revenue growth and rising gross (58.5%) and net (6.8%) margins indicate durable demand and scalable operations. This combination supports reinvestment in capacity, strengthens pricing power and margin sustainability, and improves resilience to moderate market variances over months.

Solid balance sheet

Moderate leverage (D/E 0.44) and a high equity ratio (58.8%) provide financial flexibility to fund expansion or absorb shocks. An improving ROE (11.1%) shows effective capital use, reducing refinancing risk and supporting strategic investments over the medium term.

Integrated manufacturing model

Owning end-to-end design, sourcing and manufacturing creates a durable competitive edge: tighter quality control, faster turnaround, and higher value-added services. This integration supports long-term customer relationships, margin retention and ability to meet export/domestic demand reliably.

Negative Factors

Negative free cash flow

Capex-driven negative free cash flow strains internal funding and may require external financing or slower shareholder returns. Persisting negative FCF could limit agility to respond to orders or invest in efficiency improvements without increasing leverage or raising capital.

Weak cash conversion

An OC/Net Income ratio of 0.47 signals weaker cash realization from reported earnings, suggesting working capital build or collection issues. If persistent, this raises liquidity risk and can amplify financing needs during seasonal or cyclical downturns over the coming months.

Limited investor disclosures

Lack of earnings call detail and corporate event visibility reduces transparency on order book, margins drivers and management strategy. This information gap increases execution and governance risk for investors and complicates assessment of medium-term operational trajectory.

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 solid balance sheet. However, negative free cash flow and liquidity constraints due to increased capital expenditures are concerns.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 698.15
• 50DMA: Positive
• 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 698.15 is below the 20-day moving average (MA) of 727.77, above the 50-day MA of 698.10, and below the 200-day MA of 754.98, indicating a neutral trend. The MACD of 1.32 indicates Positive momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 43.26 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
JAYBARMARU	74 Outperform	₹11.43B	13.37	―	0.74%	4.76%	150.94%
CANTABIL	70 Outperform	₹21.58B	13.08	―	0.39%	19.90%	27.94%
KALAMANDIR	68 Neutral	₹16.50B	14.42	―	1.31%	23.15%	47.46%
SPAL	67 Neutral	₹17.67B	16.32	―	0.28%	34.25%	28.44%
LUMAXIND	66 Neutral	₹52.96B	26.20	―	0.62%	26.75%	20.28%
MONTECARLO	64 Neutral	₹10.94B	3.10	―	2.83%	8.10%	59.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

S.P. Apparels Ltd. Corporate Events

S.P. Apparels Confirms SEBI Dematerialisation Compliance for Q3 FY2025-26

S.P. Apparels Limited has notified the stock exchanges that it has received a compliance certificate from its registrar and share transfer agent, MUFG Intime India Private Limited, confirming adherence to Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The certificate affirms that all securities received for dematerialisation during the quarter were properly processed, listed on the relevant stock exchanges, and that corresponding physical certificates were duly verified, cancelled, and replaced in the company’s register of members within prescribed timelines, underscoring the company’s regulatory compliance in handling its share capital and depository operations.

S.P. Apparels Shareholders Approve Appointment of Independent Director via Postal Ballot

S.P. Apparels Limited has announced that its shareholders have approved, via remote e-voting through a postal ballot process, the appointment of Srinivas Chidambaram as a Non-Executive Independent Director. The voting, conducted in compliance with the Companies Act and SEBI’s listing and disclosure regulations and overseen by an independent scrutinizer, concluded on 27 December 2025 with the resolution passed by the requisite majority, reinforcing the company’s corporate governance framework and board independence.