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

• Market Cap: ₹20.57B
• Dividend Yield: 0.44%
• Average Volume (3M): 3.41K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.84
• Revenue Growth: 28.31%
• EPS Growth: 6.08%
• Country: IN
• Employees: 8,409
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 25,092,600
• 10 Day Avg. Volume: 3,753
• 30 Day Avg. Volume: 3,414
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹839.00
• Price Target Upside: 7.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ₹839.00 ▲(7.51% Upside)

S.P. Apparels Ltd. demonstrates strong financial performance with robust revenue and profit growth, supported by efficient operations. However, technical indicators suggest a bearish trend, and cash flow management poses some concerns. The stock's valuation is reasonable, but the lack of dividend yield may deter income investors.

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

Company Description

S.P. Apparels Ltd. (SPAL) is an Indian company primarily engaged in the manufacturing and export of knitted garments for infants and children. The company operates within the textile and apparel sector, focusing on producing high-quality, value-added garments for leading international brands. SPAL is recognized for its extensive range of products, which includes T-shirts, shirts, dresses, and other clothing items, catering to both domestic and international markets.

How the Company Makes Money

S.P. Apparels Ltd. generates revenue primarily through the sale of its manufactured apparel products. The company's key revenue streams include exports of knitted garments to international markets, predominantly Europe and the USA, where it supplies to well-known global brands. Additionally, SPAL benefits from its vertically integrated operations, which allow it to control the production process from yarn to finished garment, optimizing cost efficiency and quality control. This integration supports the company's ability to offer competitive pricing and timely delivery, further enhancing its revenue potential. Strategic partnerships with prominent brands and retailers also contribute significantly to SPAL's earnings, as these collaborations help secure consistent orders and expand the company's reach in global markets.

S.P. Apparels Ltd. Financial Statement Overview

Summary

S.P. Apparels Ltd. has shown strong revenue growth and improved profit margins, with a solid balance sheet. However, challenges in free cash flow management due to increased capital expenditures present potential liquidity constraints.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.95B	10.31B	10.27B	8.22B	6.32B
Gross Profit	8.16B	5.04B	4.60B	3.95B	3.05B
EBITDA	2.00B	1.69B	1.59B	1.62B	1.04B
Net Income	951.02M	896.25M	825.12M	846.93M	431.73M
Balance Sheet
Total Assets	14.56B	11.42B	10.97B	10.62B	9.12B
Cash, Cash Equivalents and Short-Term Investments	415.15M	1.29B	1.33B	621.27M	411.77M
Total Debt	3.81B	2.03B	2.45B	2.31B	1.94B
Total Liabilities	6.06B	3.84B	4.30B	4.31B	3.60B
Stockholders Equity	8.56B	7.64B	6.74B	6.38B	5.58B
Cash Flow
Free Cash Flow	-378.25M	242.25M	1.64B	-64.48M	362.07M
Operating Cash Flow	444.18M	792.04M	2.16B	268.93M	805.04M
Investing Cash Flow	-1.77B	62.13M	-1.60B	-291.86M	-207.63M
Financing Cash Flow	824.99M	-496.21M	-478.23M	236.28M	-423.77M

S.P. Apparels Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 780.40
• 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 780.4 is below the 20-day moving average (MA) of 804.16, below the 50-day MA of 819.47, and below the 200-day MA of 826.61, indicating a bearish trend. The MACD of -12.15 indicates Positive momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of 63.85 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
KALAMANDIR	67 Neutral	₹26.02B	22.05		0.59%	17.77%	28.06%
MONTECARLO	67 Neutral	₹11.37B	14.54		3.63%	6.08%	31.43%
SPAL	65 Neutral	₹20.57B	20.59		0.44%	28.31%	6.08%
JAYBARMARU	64 Neutral	₹9.42B	18.53		0.81%	0.93%	88.44%
CANTABIL	61 Neutral	₹20.67B	26.46		0.40%	19.03%	25.30%
Sector *	61 Neutral	$17.22B	11.53	-5.99%	3.08%	1.40%	-15.51%

S.P. Apparels Ltd. Corporate Events

S.P. Apparels Schedules 20th AGM and Shares Annual Report Link

S.P. Apparels Limited has announced the scheduling of its 20th Annual General Meeting (AGM) for September 1, 2025, which will be conducted via video conferencing. The company has also provided a web-link to its Annual Report for the financial year 2024-25 to members who have not registered their email addresses, in compliance with SEBI regulations. This initiative underscores the company’s commitment to transparency and regulatory compliance, while also encouraging stakeholders to update their KYC details and dematerialize physical securities, aligning with SEBI’s directives.