Sreeleathers Ltd. (SREEL) AI Stock Analysis

• Market Cap: ₹4.28B
• Dividend Yield: N/A
• Average Volume (3M): 1.15K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.80
• Revenue Growth: 6.38%
• EPS Growth: 1.63%
• Country: IN
• Employees: 58
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 3.25
• Shares Outstanding: 23,155,012
• 10 Day Avg. Volume: 696
• 30 Day Avg. Volume: 1,150
• PEG Ratio: -1.45
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 2.36
• P/FCF Ratio: 20.87
• 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: 67 Neutral
• Price Target: ₹200.00 ▼(-7.66% Downside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

Overall score is driven primarily by solid financial stability (notably the strong balance sheet) tempered by weaker technical trends (below key moving averages and negative MACD). Valuation is supportive but not compelling given the modest dividend yield.

Positive Factors

Strong balance sheet

A low debt-to-equity profile and high equity ratio provide durable financial flexibility: the company can absorb demand shocks, fund targeted store or inventory investments internally, and access cheaper credit when needed, supporting multi-quarter resilience and strategic optionality.

Consistent revenue and EPS growth

Sustained ~10% revenue and EPS growth evidences steady market traction and operational execution. Durable top-line expansion supports scale economics, predictable cash generation and the ability to reinvest in product, stores, or marketing to maintain competitive position over multiple quarters.

Positive operating cash flow

Consistent positive operating cash flow indicates the core retail business converts sales into cash reliably. That underpins funding for working capital, modest capex, and potentially shareholder returns without heavy reliance on external financing, enhancing long-term financial sustainability.

Negative Factors

Declining free cash flow growth

A negative change in free cash flow growth is a structural concern: it limits reinvestment into stores, product development or inventory and raises the probability of needing external funding for expansion or working capital, pressuring strategic flexibility over coming quarters.

Margin softening

Erosion in core operating margins suggests cost pressures or mix shifts that can persist if unchecked. Over multiple quarters, sustained margin compression would reduce cash available for growth or dividends and could erode the company’s return on equity and competitive reinvestment capacity.

Limited scale and low liquidity

Small organizational scale and extremely low trading liquidity imply weaker bargaining power with suppliers, limited geographic reach, and greater vulnerability to local demand shifts. Limited scale constrains roll-out speed and can raise effective costs over several quarters.

Sreeleathers Ltd. Business Overview & Revenue Model

Company Description

Sreeleathers Limited engages in the wholesale and retail of footwear, and leather goods and accessories in India. It offers formal, canvas, and casual, as well as school shoes; chappals; sandals; and accessories, such as belts, wallets, bags, socks, and jewelry and watch boxes for men, women, and kids, as well as disposable PPE kits and masks. Sreeleathers Limited sells its products through online. The company was formerly known as CAT Financial Services Ltd and changed its name to Sreeleathers Limited in October 2010. Sreeleathers Limited was incorporated in 1991 and is based in Kolkata, India.

How the Company Makes Money

Sreeleathers makes money primarily by selling consumer products—especially footwear—under its brand through retail and distribution. Its key revenue streams are (1) footwear sales, which typically represent the largest portion of turnover for a footwear-focused retailer, spanning multiple price points and categories; and (2) sales of ancillary leather and lifestyle products such as bags, belts, wallets, and similar accessories that are frequently cross-sold alongside footwear. Revenue is earned at the point of sale through its physical retail outlets and other channels used to reach customers (e.g., company-operated formats and any additional distribution arrangements). Profitability is driven by product mix (higher-margin accessories vs. core footwear), pricing and discounting strategy, procurement/manufacturing sourcing and inventory management, and store network performance (footfall, same-store sales, and operating leverage). Specific details on material partnerships, exact channel mix (e-commerce vs. offline), or segment-wise revenue breakdown are null.

Sreeleathers Ltd. Financial Statement Overview

Summary

Strong balance sheet (low leverage, high equity ratio, healthy ROE) supports stability, while income statement trends show solid profitability but some recent margin softening. Cash flow is positive, though the latest decline in free cash flow growth is a key watch item.

Income Statement

Sreeleathers Ltd. shows a stable financial performance with consistent revenue growth and solid profitability. The gross profit margin and net profit margin have remained robust over the years, indicating efficient cost management and profitability. However, there is a slight decline in EBIT and EBITDA margins in the latest year, which may need monitoring.

Balance Sheet

The company maintains a strong financial position with a low debt-to-equity ratio, reflecting prudent financial management and low leverage. The equity ratio is high, indicating a solid foundation of stockholder equity relative to total assets. Return on equity is healthy, suggesting effective use of shareholders' funds.

Cash Flow

Sreeleathers Ltd. demonstrates consistent positive operating cash flow, supporting its operational sustainability. However, the free cash flow growth has been negative in the latest year, which could constrain future investment capacity if not addressed. The operating cash flow to net income ratio remains stable, indicating operational efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.33B	2.20B	2.18B	2.00B	1.22B	833.66M
Gross Profit	494.30M	420.34M	538.50M	501.61M	328.75M	234.88M
EBITDA	328.58M	335.40M	378.80M	363.18M	241.27M	167.18M
Net Income	230.60M	225.71M	268.45M	256.16M	165.33M	111.51M
Balance Sheet
Total Assets	5.17B	4.86B	4.39B	3.94B	3.55B	3.30B
Cash, Cash Equivalents and Short-Term Investments	117.70M	62.63M	89.92M	63.53M	54.20M	40.35M
Total Debt	23.98M	25.61M	29.34M	31.52M	33.33M	30.01M
Total Liabilities	327.74M	238.66M	217.25M	219.09M	177.50M	162.25M
Stockholders Equity	4.84B	4.62B	4.18B	3.72B	3.37B	3.14B
Cash Flow
Free Cash Flow	183.53M	248.34M	288.80M	280.26M	164.17M	107.46M
Operating Cash Flow	184.11M	274.94M	295.11M	290.80M	165.50M	109.02M
Investing Cash Flow	-155.31M	-271.82M	-295.99M	-248.88M	-155.20M	245.56M
Financing Cash Flow	-3.03M	-5.26M	-7.89M	-6.34M	-8.41M	-332.19M

Sreeleathers Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 216.60
• 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:SREEL, the sentiment is Negative. The current price of 216.6 is above the 20-day moving average (MA) of 196.51, above the 50-day MA of 206.20, and below the 200-day MA of 226.18, indicating a bearish trend. The MACD of -4.23 indicates Positive momentum. The RSI at 38.18 is Neutral, neither overbought nor oversold. The STOCH value of 26.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SREEL.

Sreeleathers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRISDOREME	71 Outperform	₹5.58B	60.00	―	―	12.30%	92.63%
SREEL	67 Neutral	₹4.28B	16.67	―	―	6.38%	1.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LAMBODHARA	62 Neutral	₹992.10M	13.04	―	0.42%	13.13%	-2.13%
LAL	60 Neutral	₹1.23B	35.63	―	―	20.81%	-133.88%
BHANDARI	59 Neutral	₹1.09B	10.89	―	0.51%	2.92%	-0.09%
ZODIACLOTH	40 Underperform	₹1.87B	-6.35	―	―	4.96%	14.10%

Sreeleathers Ltd. Corporate Events

Sreeleathers Publishes Statutory Notices in Newspapers Under SEBI Disclosure Norms

Sreeleathers Ltd. has notified the stock exchanges that it has published statutory newspaper advertisements in English daily The Echo of India and Bengali daily Arthik Lipi on 8 February 2026, in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The disclosure underscores the company’s adherence to mandated transparency and communication standards for listed entities, with the published information also made available on its corporate website for stakeholders’ reference.