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

• Market Cap: ₹17.91B
• Dividend Yield: 0.28%
• Average Volume (3M): 1.58K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.92
• 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: ₹776.00 ▲(11.15% 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

S.P. Apparels reported a 35.2% revenue increase in the latest year, reflecting durable demand and scale in its manufacturing and supply capabilities. Sustained double-digit top-line growth supports reinvestment, improves bargaining leverage with suppliers, and underpins medium-term earnings momentum.

Expanding Profitability Margins

Material gross margin (58.5%) and rising EBIT/EBITDA margins indicate structural cost advantages and effective pricing/execution in manufacturing. Persistent margin expansion suggests the company can sustain profitability through operational efficiencies and product mix improvements versus peers over the next several quarters.

Conservative Capital Structure

A moderate leverage ratio (debt/equity 0.44) and 58.8% equity financing provide balance-sheet flexibility to fund growth and withstand shocks. Improved ROE to 11.1% shows productive use of capital; this combination supports durable financial stability and options for selective investment or deleveraging.

Negative Factors

Negative Free Cash Flow

FCF turning negative from elevated capital expenditures reduces internal funding capacity and increases reliance on external financing. Over a multi-quarter horizon, persistent negative FCF can constrain strategic flexibility, raise financing costs, and force trade-offs between growth projects and working capital needs.

Weak Cash Conversion

A 0.47 operating cash flow to net income ratio signals weaker conversion of reported profits into cash. Poor cash conversion undermines liquidity resilience, complicates debt servicing and capex funding, and increases the risk that earnings improvements won't translate into durable free cash generation.

Limited Revenue Source Disclosure

The absence of disclosed customer concentration, brand partnerships, or export/domestic mix limits visibility into demand durability and client risk. This disclosure gap makes it harder to assess revenue stability, concentration risk, and resilience to regional or customer-specific downturns over the medium term.

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

SPAL primarily makes money by producing and selling finished apparel—especially knitted garments—to its customers. Revenue is recognized from the sale and delivery of these garments under manufacturing/supply arrangements, typically based on order volumes, negotiated unit prices, product specifications, and delivery schedules. Key revenue streams therefore come from (1) exports and/or domestic sales of manufactured garments and (2) value-added services embedded in the garment supply process such as product development, sampling, sourcing, and compliance-driven manufacturing that allow the company to earn manufacturing margins on orders. Specific details on customer concentration, brand partnerships, channel mix (export vs domestic), or the contribution of any non-core revenue streams are not available in the provided context and are therefore null.

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	15.89B	13.95B	10.31B	10.27B	8.22B	6.32B
Gross Profit	7.95B	8.16B	5.04B	4.60B	3.95B	3.05B
EBITDA	2.37B	2.00B	1.69B	1.59B	1.60B	1.04B
Net Income	1.10B	951.02M	896.25M	825.12M	846.93M	431.73M
Balance Sheet
Total Assets	15.27B	14.56B	11.42B	10.97B	10.62B	9.12B
Cash, Cash Equivalents and Short-Term Investments	508.03M	415.15M	1.29B	1.33B	621.27M	411.77M
Total Debt	4.05B	3.81B	2.03B	2.45B	2.31B	1.94B
Total Liabilities	6.35B	6.06B	3.84B	4.30B	4.31B	3.60B
Stockholders Equity	8.98B	8.56B	7.64B	6.74B	6.38B	5.58B
Cash Flow
Free Cash Flow	591.12M	-378.25M	242.25M	1.64B	-64.48M	362.07M
Operating Cash Flow	1.26B	444.18M	792.04M	2.16B	268.93M	805.04M
Investing Cash Flow	-1.16B	-1.77B	62.13M	-1.60B	-291.86M	-207.63M
Financing Cash Flow	-9.17M	824.99M	-667.83M	-478.23M	236.28M	-423.77M

S.P. Apparels Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 698.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 698.15 is below the 20-day moving average (MA) of 701.39, above the 50-day MA of 695.68, and below the 200-day MA of 744.95, indicating a neutral trend. The MACD of -1.42 indicates Negative momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 66.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹9.33B	13.37	―	0.74%	4.76%	150.94%
CANTABIL	70 Outperform	₹19.84B	13.08	―	0.39%	19.90%	27.94%
KALAMANDIR	68 Neutral	₹15.41B	14.42	―	1.31%	23.15%	47.46%
SPAL	67 Neutral	₹17.91B	16.32	―	0.28%	34.25%	28.44%
LUMAXIND	66 Neutral	₹47.28B	26.20	―	0.62%	26.75%	20.28%
MONTECARLO	64 Neutral	₹10.90B	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.