Saraswati Saree Depot Limited (SSDL) AI Stock Analysis

• Market Cap: ₹2.37B
• Dividend Yield: 4.77%
• Average Volume (3M): 1.42K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 1.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.81
• Shares Outstanding: 39,599,800
• 10 Day Avg. Volume: 1,476
• 30 Day Avg. Volume: 1,415
• PEG Ratio: -0.82
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -91.57
• 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: 64 Neutral
• Price Target: ₹66.00 ▼(-16.14% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is supported by solid financial performance trends (especially revenue growth and improving leverage) and an attractive valuation (low P/E and high dividend yield). Offsetting these positives, technicals are weak with the stock trading below major moving averages and negative MACD, and cash flow quality remains a notable risk due to negative free cash flow.

Positive Factors

Consistent Revenue Growth

Saraswati Saree Depot has shown multi-year revenue growth including a notable rise into 2024–2025. Durable top-line expansion supports scale in a wholesale model, enabling better supplier terms and distribution reach, which sustains long-term market share and reinvestment capacity.

Improving Leverage and ROE

The company materially improved its debt-to-equity and raised its equity ratio while boosting ROE. Lower leverage and stronger capital structure reduce financial risk, improve resilience to cyclical apparel demand, and expand optionality for financing strategic growth or working capital needs.

Wholesale Distribution Business Model

A B2B wholesale distribution model selling to retailers creates durable, repeatable revenue via established routes-to-market. Dependable reorder streams, lower customer acquisition costs than retail, and the ability to adjust product mix support steady cash generation potential over the medium term.

Negative Factors

Weak Cash Flow Quality

Operating cash flow lags net income and free cash flow remains negative, which can limit the company's ability to fund inventory, capex, or expansion without external financing. Persistently weak cash conversion reduces financial flexibility and raises refinancing risk over months.

Margin Pressure

Declining gross and operating margins indicate procurement cost pressure or lower pricing power. Sustained margin erosion compresses operating cash generation and reduces buffer against input cost inflation, making profitability more sensitive to volume swings in the apparel market.

Elevated Liabilities Relative to Assets

Although leverage metrics improved, total liabilities remain high versus assets, signaling residual balance-sheet risk. High liabilities can restrict strategic flexibility, increase interest cost exposure, and amplify vulnerability to demand shocks in a seasonal retailing environment.

Saraswati Saree Depot Limited Business Overview & Revenue Model

Company Description

Saraswati Saree Depot Limited engages in the wholesale distribution of women's traditional and ethnic wear garments in India. The company offers sarees, kurtis, dress materials, blouse pieces, lehengas, bottoms, chunaris, pant and shirt pieces, and other women's apparel accessories. It also serves customers online; and through its stores in Kolhapur and Ulhasnagar. The company was founded in 1966 and is based in Kolhapur, India.

How the Company Makes Money

Saraswati Saree Depot Limited generates revenue primarily through the direct sale of sarees and related clothing items in its retail outlets and online platform. The company benefits from multiple revenue streams, including wholesale distribution to other retailers, custom orders for weddings and events, and seasonal promotions. Additionally, SSDL has established partnerships with local textile manufacturers and artisans, which allows it to maintain a competitive edge by offering unique products that resonate with consumers seeking authentic craftsmanship. The brand's strong presence in both physical stores and e-commerce has further enhanced its sales performance, enabling it to reach a broader market and increase its overall profitability.

Saraswati Saree Depot Limited Financial Statement Overview

Summary

Income statement strength (75) shows consistent revenue growth and stable net margins, but slightly weaker EBIT/EBITDA margins suggest some efficiency pressure. Balance sheet (68) has improved leverage and ROE, though liabilities remain high versus assets. Cash flow is the key drag (55) with operating cash flow low relative to net income and negative free cash flow, limiting financial flexibility.

Income Statement

Saraswati Saree Depot Limited has shown consistent revenue growth over the past years, with a notable increase from 2024 to 2025. The gross profit margin has decreased slightly, indicating potential cost pressure. The net profit margin remains stable, reflecting efficient management of operating expenses. However, EBIT and EBITDA margins have slightly decreased, suggesting room for operational efficiency improvements.

Balance Sheet

The company has improved its debt-to-equity ratio significantly, indicating a stronger balance sheet and lower financial risk. Return on Equity (ROE) has improved, showing effective utilization of shareholder funds. The equity ratio has increased, reflecting a robust capital structure. However, the overall liabilities remain high relative to total assets, indicating potential leverage risks.

Cash Flow

Operating cash flow has improved significantly but remains relatively low compared to net income, indicating potential cash management issues. Free cash flow has improved from previous years but remains negative, which may constrain future investment opportunities. The company should focus on enhancing cash generation to support growth and reduce reliance on external financing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.28B	6.04B	6.02B	5.92B	5.43B	0.00
Gross Profit	700.03M	607.53M	674.28M	614.16M	457.38M	0.00
EBITDA	485.00M	457.13M	428.57M	357.18M	215.98M	0.00
Net Income	308.27M	305.76M	295.28M	229.74M	123.08M	-3.00K
Balance Sheet
Total Assets	0.00	2.90B	2.06B	1.89B	1.70B	1.02M
Cash, Cash Equivalents and Short-Term Investments	465.16M	465.16M	98.68M	190.48M	172.32M	1.00M
Total Debt	0.00	153.29M	434.89M	414.29M	666.18M	0.00
Total Liabilities	-1.78B	1.12B	1.41B	1.53B	1.58B	20.00K
Stockholders Equity	1.78B	1.78B	649.09M	353.82M	124.08M	1.00M
Cash Flow
Free Cash Flow	0.00	-36.77M	-94.91M	343.20M	-449.98M	0.00
Operating Cash Flow	0.00	14.10M	-85.40M	351.92M	-412.13M	0.00
Investing Cash Flow	0.00	-80.78M	-2.34M	-43.72M	-37.85M	0.00
Financing Cash Flow	0.00	433.17M	-4.07M	-290.03M	621.29M	1.00M

Saraswati Saree Depot Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.70
• 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:SSDL, the sentiment is Negative. The current price of 78.7 is above the 20-day moving average (MA) of 68.37, above the 50-day MA of 71.30, and below the 200-day MA of 85.71, indicating a bearish trend. The MACD of -3.03 indicates Positive momentum. The RSI at 36.42 is Neutral, neither overbought nor oversold. The STOCH value of 40.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SSDL.

Saraswati Saree Depot Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANTABIL	70 Outperform	₹21.58B	13.08	―	0.39%	19.90%	27.94%
KALAMANDIR	68 Neutral	₹16.50B	14.42	―	1.31%	23.15%	47.46%
SPAL	67 Neutral	₹17.67B	16.32	―	0.28%	34.25%	28.44%
SSDL	64 Neutral	₹2.37B	23.68	―	4.77%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MANYAVAR	61 Neutral	₹90.31B	26.22	―	1.37%	5.77%	-4.37%

Saraswati Saree Depot Limited Corporate Events

Saraswati Saree Depot Confirms Full Demat Shareholding and SEBI Compliance for December Quarter

Saraswati Saree Depot Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. Its registrar and share transfer agent, Bigshare Services Pvt. Ltd., has confirmed that the regulation is effectively not applicable during this period because the company’s entire shareholding is already in dematerialised form and no requests for rematerialisation of shares were received in the quarter, underscoring a fully demat shareholder base and routine regulatory compliance for investors and market regulators.

Saraswati Saree Depot Closes Trading Window Ahead of Q3 FY26 Results

Saraswati Saree Depot Limited, a publicly listed company in the textiles and apparel segment, has its equity shares traded on BSE and NSE under the symbol SSDL, catering to a broad base of investors in the Indian capital markets. The company has announced that its trading window for dealings in its equity shares will be closed for all designated persons and their relatives from 1 January 2026 until 48 hours after the declaration of its financial results for the quarter ending 31 December 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and its internal code of conduct; the board meeting date for approval of these results will be communicated later, underscoring the company’s adherence to regulatory norms on insider trading and disclosure practices.