SPL Industries Limited (SPLIL) AI Stock Analysis

• Market Cap: ₹757.19M
• Dividend Yield: N/A
• Average Volume (3M): 7.63K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.12
• 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: 57 Neutral
• Price Target: ₹25.00 ▼(-34.47% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held up by a very strong balance sheet (near-zero debt) and improved FY2025 cash conversion, but is dragged down by sharp FY2025 revenue decline and severe gross-margin compression, alongside weak downtrend technicals (price below key moving averages and bearish momentum). Valuation is only moderately supportive with a ~10.2 P/E and no dividend yield data.

Positive Factors

Balance Sheet Strength

Near-zero debt materially lowers financial risk and preserves strategic optionality. Low leverage allows the company to endure cyclical softness, maintain supplier and creditor confidence, and fund targeted investments or working capital from the balance sheet without urgent external financing over the medium term.

Improved Cash Conversion

Operating cash flow covering net income ~2x and FCF exceeding net income in FY2025 signals a structural improvement in cash generation. Strong internal cash reduces reliance on markets for funding, supports capex or shareholder returns, and enhances resilience if sustained beyond the fiscal year.

Ongoing Profitability

The company remains profitable with ~7% net margin and a track record of higher margins historically. Continued profitability demonstrates underlying business viability and capacity to generate returns, providing a base from which margin recovery or selective reinvestment can improve long-term shareholder value.

Negative Factors

Revenue Decline

A ~21% revenue drop in FY2025 following earlier declines signals weakening demand or market share loss. Persistent top-line contraction erodes scale, reduces operating leverage, pressures per-unit economics, and makes sustaining margins and funding growth or reinvestment more difficult over the coming months.

Gross Margin Compression

Gross margin collapsing to ~5% implies severe pricing pressure or rising input costs and materially reduces the company's ability to cover fixed costs. Such a structural margin hit limits operating profitability, constrains reinvestment, and poses an earnings-quality risk unless cost or pricing dynamics improve.

Inconsistent Cash Flow Track Record

Historical volatility in cash conversion—OCF trailing net income in prior years and very low FCF in FY2023—undermines predictability. Even with FY2025 improvement, inconsistent cash flow complicates long-term planning for capex, dividends, or debt management and raises execution risk.

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

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SPL Industries Limited Financial Statement Overview

Summary

Mixed fundamentals: the balance sheet is very strong with effectively zero debt (low financial risk), and FY2025 cash generation improved with operating cash flow covering net income ~2.0x and free cash flow exceeding net income. However, operating performance weakened materially with FY2025 revenue down ~21% and gross margin compressing to ~5%, creating a meaningful profitability and earnings-quality risk if not reversed.

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	890.71M	1.39B	1.99B	2.69B	1.89B	1.02B
Gross Profit	52.02M	72.75M	287.11M	301.13M	281.63M	215.98M
EBITDA	96.16M	159.83M	192.96M	369.04M	317.62M	213.95M
Net Income	39.55M	97.92M	117.51M	238.36M	210.84M	135.52M
Balance Sheet
Total Assets	2.23B	2.22B	2.08B	2.09B	2.10B	1.52B
Cash, Cash Equivalents and Short-Term Investments	790.33M	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	133.90M	131.76M	89.85M	216.46M	466.91M	93.97M
Stockholders Equity	2.10B	2.09B	1.99B	1.87B	1.63B	1.42B
Cash Flow
Free Cash Flow	185.81M	231.64M	42.82M	3.05M	13.62M	291.29M
Operating Cash Flow	208.37M	206.99M	71.48M	140.02M	80.82M	297.85M
Investing Cash Flow	-187.68M	-208.09M	37.53M	-257.95M	-43.29M	-289.10M
Financing Cash Flow	-136.00K	-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	₹1.09B	10.89	―	0.51%	2.92%	-0.09%
SPLIL	57 Neutral	₹757.19M	10.21	―	―	―	―
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
SURYALAXMI	55 Neutral	₹991.04M	53.55	―	―	4.60%	226.64%
JHS	51 Neutral	₹680.55M	27.28	―	―	16.77%	34.47%
NAGREEKEXP	51 Neutral	₹667.17M	31.72	―	―	-27.67%	-61.81%
SELMC	42 Neutral	₹991.72M	-0.62	―	―	―	―