SPL Industries Limited (SPLIL) AI Stock Analysis

• Market Cap: ₹847.38M
• Dividend Yield: N/A
• Average Volume (3M): 7.63K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.25
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 310
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.82
• Shares Outstanding: 29,000,004
• 10 Day Avg. Volume: 434
• 30 Day Avg. Volume: 7,626
• PEG Ratio: -0.59
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 4.15
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹30.00 ▼(-21.36% Downside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is anchored by a very strong, low-risk balance sheet and better FY2025 cash generation, but it is held back by sharp FY2025 deterioration in revenue and gross margin and a weak technical setup (price below key moving averages with negative MACD). Valuation (P/E ~25.6) does not look compelling enough to offset the fundamental and trend pressure.

Positive Factors

Balance Sheet Strength

Negligible debt and a substantial equity base materially reduce financial risk and interest burden, giving the company durable flexibility to fund operations, invest in capex or product initiatives, and withstand demand downturns without needing external financing, supporting long-term resilience.

Improved Cash Generation

Strong operating cash flow and free cash flow coverage in FY2025 indicate the business can internally fund working capital and reinvestment needs. Improved cash conversion enhances liquidity, reduces reliance on capital markets, and supports sustainable capital allocation (capex, dividends, or buybacks) over the medium term.

Historical Profitability

A track record of higher margins in prior cycles shows the business can generate robust profitability when conditions normalize, reflecting structural strengths like product mix, cost base or brand positioning. This indicates potential for margin recovery and intact earnings power over time if demand or pricing improves.

Negative Factors

Revenue Decline

A sharp revenue contraction erodes scale and operating leverage, making fixed costs harder to cover and reducing bargaining power with suppliers and retailers. Sustained top-line weakness can depress long-term growth prospects and make it harder to restore prior profitability without clear demand or market-share recovery strategies.

Gross Margin Compression

Severe gross margin compression signals structural pressure on pricing, mix, or cost base. If margins remain depressed, profitability and cash generation face persistent deterioration, limiting reinvestment capacity and making it difficult to return to historical returns without sustained cost restructuring or improved pricing power.

Falling ROE and Cash Consistency Risk

Declining ROE reflects weaker profitability and a lower ability to convert capital into shareholder returns. Coupled with a history of uneven cash flow in prior years, this reduces predictability of funds available for growth or distributions and raises execution risk for strategies that depend on consistent internal cash generation.

SPL Industries Limited Business Overview & Revenue Model

Company Description

SPL Industries Limited designs, manufactures, and sells cotton knitted garments and made ups in India. The company operates in two segments, Manufacturing Cotton Knitted Garments and Made Ups and Processing Charges, and Trading of Garments. It offers fabrics, such as single jersey, jacquard, interlocks, flat backs, auto stripes fleece, double jersey jacquard, and waffles and various textures; and a range of outer wear, such as T shirts, sweatshirts, polo shirts, etc. The company also engages in the trading of garments. In addition, it exports its products to the United States, the Middle Eastern, Asian, European, and international markets. The company was formerly known as Shivalik Prints Private Limited and changed its name to SPL Industries Limited in 1994. SPL Industries Limited was incorporated in 1991 and is based in Faridabad, India.

How the Company Makes Money

SPL Industries Limited Financial Statement Overview

Summary

Balance sheet strength (negligible debt and substantial equity) and improved FY2025 cash conversion support the score, but FY2025 income statement deterioration is a major offset: revenue fell ~21% and gross margin compressed sharply (~14% to ~5%), raising profitability and earnings-quality risk if margins don’t recover.

Income Statement

Revenue has been volatile and recently weak, with FY2025 revenue down ~21% after a modest decline in FY2024. Profitability has compressed meaningfully: gross margin fell from ~14% (FY2024) to ~5% (FY2025), and operating profitability also weakened, despite net margin holding around ~7% in FY2025. The main positives are that the company remains profitable and has posted strong margins historically (notably FY2020–FY2022), but the current trajectory points to pressure on pricing/costs and earnings quality risk if the low gross margin persists.

Balance Sheet

The balance sheet is a clear strength: debt is effectively negligible (zero in FY2025) and equity is substantial, keeping leverage extremely low and reducing financial risk. Total assets have been relatively steady while equity has grown over time, indicating a solid capital base. Returns on equity are moderate and have come down versus earlier years (roughly ~4.7% in FY2025 vs low-teens in FY2021–FY2022), suggesting profitability—not leverage—is the key driver to improve shareholder returns.

Cash Flow

Cash generation improved sharply in FY2025, with operating cash flow (~207m) covering net income by ~2.0x and free cash flow exceeding net income (~1.12x), indicating strong cash conversion in the most recent year. However, prior years were more uneven (e.g., operating cash flow below net income in FY2022–FY2024 and very low free cash flow in FY2023), which raises some consistency concerns. Overall, the latest year is encouraging, but the track record shows volatility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.14B	1.39B	1.99B	2.69B	1.89B	1.02B
Gross Profit	140.61M	72.75M	287.11M	301.13M	281.63M	215.98M
EBITDA	144.08M	159.83M	192.96M	369.04M	317.62M	213.95M
Net Income	81.21M	97.92M	117.51M	238.36M	210.84M	135.52M
Balance Sheet
Total Assets	0.00	2.22B	2.08B	2.09B	2.10B	1.52B
Cash, Cash Equivalents and Short-Term Investments	708.39M	708.39M	242.32M	327.48M	683.63M	796.38M
Total Debt	0.00	0.00	40.00K	106.59M	49.30M	44.45M
Total Liabilities	-2.09B	131.76M	89.85M	216.46M	466.91M	93.97M
Stockholders Equity	2.09B	2.09B	1.99B	1.87B	1.63B	1.42B
Cash Flow
Free Cash Flow	0.00	231.64M	42.82M	3.05M	13.62M	291.29M
Operating Cash Flow	0.00	206.99M	71.48M	140.02M	80.82M	297.85M
Investing Cash Flow	0.00	-208.09M	37.53M	-257.95M	-43.29M	-289.10M
Financing Cash Flow	0.00	-1.06M	-107.42M	47.78M	-2.21M	-2.34M

SPL Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BHANDARI	59 Neutral	₹754.56M	8.84	―	0.51%	2.92%	-0.09%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
SURYALAXMI	55 Neutral	₹1.13B	22.14	―	―	4.60%	226.64%
SPLIL	54 Neutral	₹847.38M	14.19	―	―	―	―
JHS	51 Neutral	₹829.50M	-15.64	―	―	16.77%	34.47%
NAGREEKEXP	51 Neutral	₹801.54M	33.26	―	―	-27.67%	-61.81%
SELMC	42 Neutral	₹1.08B	-0.62	―	―	―	―