Sportking India Ltd. (SPORTKING) AI Stock Analysis

• Market Cap: ₹14.24B
• Dividend Yield: 1.1%
• Average Volume (3M): 12.56K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.01
• Revenue Growth: -1.76%
• EPS Growth: 24.55%
• Country: IN
• Employees: 5,974
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.94
• Shares Outstanding: 127,072,000
• 10 Day Avg. Volume: 8,786
• 30 Day Avg. Volume: 12,562
• PEG Ratio: 0.17
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 3.02
• 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: 78 Outperform
• Price Target: ₹135.00 ▲(54.39% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by strong financial quality (notably free cash flow strength and a healthy EBIT margin) and an attractive P/E valuation. Technicals are supportive in the near term, but overbought momentum signals and weakness versus the 200-day average temper the overall rating.

Positive Factors

Free cash flow strength

Sustained positive free cash flow of INR 3.45bn indicates the business generates cash after reinvestment, enabling capex funding, debt reduction, dividends or buybacks. Strong cash conversion reduces refinancing risk and supports strategic investments across textile cycles over months to years.

High EBIT margin

An 18.5% EBIT margin reflects durable operational efficiency and pricing power in yarn manufacturing. Higher operating margins provide a buffer versus raw material swings, fund working capital needs, and support reinvestment to defend market share across multiple quarters.

Healthy balance sheet

A 56.6% equity ratio and improving leverage show financial stability, lowering solvency risk and preserving access to funding. This balance sheet strength supports capital expenditures and working capital through industry downcycles, enabling longer-term strategic flexibility.

Negative Factors

Moderate net profit margin

A 4.3% net margin limits retained earnings and cushion against shocks; despite solid operating margins, low net profitability signals pressure from interest, taxes or non-op items. Persistently modest net margins constrain long-term equity build-up and reinvestment capacity.

Only moderate ROE

ROE near 11% suggests the firm delivers only moderate returns on shareholder capital. Over a multi-quarter horizon, this may limit investor patience and indicates room to improve asset turnover or margin expansion to translate operational strength into higher long-term shareholder returns.

Input cost sensitivity

Business economics depend on the spread between yarn prices and volatile inputs like raw cotton, power and labor. Sustained input price inflation or unfavorable spreads can compress margins for extended periods, making profitability cyclical and dependent on procurement and pricing execution.

Sportking India Ltd. Business Overview & Revenue Model

Company Description

Sportking India Limited manufactures and sells cotton, synthetic, and blended yarns in India. The company also provides knitted fabrics. In addition, it produces T-shirts, shirts, sweatshirts, sweaters, jackets, jeans, trousers, track pants, tracksuits, Bermuda and shorts, and nightwear for boys and men; and tops, tunics, shirts, kurtis, sweatshirts, sweaters, cardigans, jeans, trousers, leggings, track pants, tracksuits, shorts, nightwear, and lingerie for girls and ladies. The company sells its products through approximately 100 retail outlets, as well as through its online retail store. It also exports its products to approximately 30 countries. Sportking India Limited was founded in 1977 and is based in Ludhiana, India.

How the Company Makes Money

Sportking India Ltd. generates revenue primarily through the sale of its yarns, fabrics, and finished garments. The company's revenue model is based on both direct sales to textile manufacturers and retailers as well as exports to international markets. Key revenue streams include the production of cotton and synthetic yarns, which are sold to various textile mills, and the manufacturing of fabrics that are supplied to garment manufacturers. Additionally, SPORTKING has established significant partnerships with major retailers and brands, enhancing its market reach and contributing to consistent sales growth. The company also benefits from economies of scale due to its large production capacity, which allows for competitive pricing and increased profitability.

Sportking India Ltd. Financial Statement Overview

Summary

Financials are solid overall: revenue grew 6.2% (2024 to 2025), EBIT margin is strong at 18.5%, and cash generation is a key strength with positive free cash flow (3.45B INR) and strong cash conversion. Offsetting factors are a moderate net margin (4.3%) and only moderate ROE (10.9%).

Income Statement

Sportking India Ltd. has demonstrated solid revenue growth, with a 6.2% increase from 2024 to 2025. The gross profit margin has shown improvement, and the EBIT margin is strong at 18.5% for 2025. However, the net profit margin is moderate at 4.3%, indicating room for efficiency improvements. Overall, the income statement reflects strong growth and profitability, with some areas for further optimization.

Balance Sheet

The balance sheet indicates a healthy equity ratio of 56.6% in 2025, reflecting financial stability. The debt-to-equity ratio has improved, showing reduced leverage from previous years. Return on equity is moderate at 10.9%, suggesting reasonable returns on shareholder investments. While the company has managed its liabilities well, a focus on enhancing equity returns would further strengthen its financial position.

Cash Flow

Sportking India Ltd. has significantly improved its cash flow management in 2025, with a positive free cash flow of 3.45 billion INR. The operating cash flow to net income ratio is strong, indicating efficient conversion of profits to cash. The free cash flow to net income ratio is excellent, showcasing strong cash generation capabilities. Overall, the company's cash flow statement reflects robust cash management and growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	24.52B	25.24B	23.77B	21.57B	21.01B	12.94B
Gross Profit	6.24B	6.09B	2.92B	5.42B	7.50B	3.36B
EBITDA	2.99B	2.90B	2.30B	2.57B	6.15B	2.01B
Net Income	1.16B	1.09B	703.46M	1.32B	4.09B	845.29M
Balance Sheet
Total Assets	18.05B	17.75B	19.63B	15.75B	15.54B	10.32B
Cash, Cash Equivalents and Short-Term Investments	144.98M	70.72M	14.46M	115.56M	5.35M	8.30M
Total Debt	5.12B	5.86B	8.75B	4.74B	5.38B	5.04B
Total Liabilities	7.49B	7.69B	10.61B	6.75B	7.87B	6.75B
Stockholders Equity	10.56B	10.06B	9.02B	9.00B	7.67B	3.57B
Cash Flow
Free Cash Flow	1.34B	3.45B	-3.41B	1.56B	164.67M	987.47M
Operating Cash Flow	1.59B	4.15B	-2.36B	5.20B	956.31M	1.03B
Investing Cash Flow	-258.48M	-667.06M	-456.12M	-3.92B	-1.03B	-25.44M
Financing Cash Flow	-1.20B	-3.49B	2.71B	-1.17B	69.12M	-1.01B

Sportking India Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 87.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPORTKING, the sentiment is Positive. The current price of 87.44 is below the 20-day moving average (MA) of 113.23, below the 50-day MA of 102.57, and below the 200-day MA of 104.31, indicating a bullish trend. The MACD of 2.72 indicates Positive momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 79.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SPORTKING.

Sportking India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPORTKING	78 Outperform	₹14.24B	11.24	―	1.10%	-1.76%	24.55%
SPAL	67 Neutral	₹17.13B	16.32	―	0.28%	34.25%	28.44%
SHARDAMOTR	66 Neutral	₹43.06B	16.59	―	2.75%	6.96%	6.33%
MONTECARLO	64 Neutral	₹10.33B	3.10	―	2.83%	8.10%	59.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GOKEX	56 Neutral	₹41.29B	92.98	―	―	22.27%	7.09%

Sportking India Ltd. Corporate Events

Sportking Issues Typo Corrigendum With No Change to Financial Results

Sportking India Ltd. has issued a corrigendum to its recently published financial results, clarifying that the board and audit committee meeting approving the results was held on 7 February 2026, not 7 February 2025 as mistakenly stated in the newspaper note. The company emphasized that this was a typographical error only, with no change to the financial figures or any other disclosed information, indicating no impact on its reported performance or stakeholder assessments based on those results.

Sportking India Shares Earnings Call Audio for December 2025 Period

Sportking India Ltd. has released the audio recording link of its earnings call held on 9 February 2026, where management discussed the company’s operational and financial performance for the quarter and nine months ended 31 December 2025. By making the call recording publicly accessible, the company enhances transparency for investors and analysts, supporting better-informed assessment of its recent performance and outlook within the competitive textile industry.