Sumeet Industries Limited (SUMEETINDS) AI Stock Analysis

• Market Cap: ₹15.72B
• Dividend Yield: N/A
• Average Volume (3M): 77.91K
• Price to Earnings (P/E): 44.6
• Beta (1Y): -0.08
• Revenue Growth: 0.58%
• EPS Growth: N/A
• Country: IN
• Employees: 608
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.17
• Shares Outstanding: 526,325,700
• 10 Day Avg. Volume: 127,523
• 30 Day Avg. Volume: 77,909
• PEG Ratio: -0.03
• Price to Book (P/B): 4.02
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 1.83
• 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: 49 Neutral
• Price Target: ₹30.00 ▲(14.77% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held back primarily by weak financial performance (profitability volatility and high leverage) and a high P/E valuation. Technicals are supportive, with the stock trading above key moving averages and positive MACD, which partially offsets the fundamental and valuation risks.

Positive Factors

Improving cash generation

Sumeet's strong free cash flow growth and healthy operating cash conversion indicate the business is generating durable internal funding. Over 2-6 months this supports capex, working capital needs and potential deleveraging, reducing reliance on external financing and improving financial flexibility.

Margin improvement trend

Material improvement in gross and operating margins suggests better cost control, pricing or product mix. Sustained margin expansion increases earnings power, provides capacity to absorb input inflation, and enhances long-term cash generation if management sustains these operational improvements.

Positive return on equity

A positive ROE demonstrates the company can generate returns on shareholders' capital, indicating underlying profitability potential. Even if inconsistent, persistent positive ROE episodes show the business model can produce shareholder value when operating headwinds ease.

Negative Factors

Declining and inconsistent revenue

A steep ~35.7% revenue decline and inconsistent top-line trends weaken scale economics and reduce predictability of margins and cash flow. Over several months this undermines the sustainability of recent margin gains and raises execution risk for restoring growth and leveraging fixed costs.

High leverage and low equity buffer

Significant leverage and a low equity ratio increase interest and refinancing risk, constraining strategic flexibility. In a cyclical apparel industry, elevated debt levels reduce the company's ability to invest, absorb shocks, or execute margin-improvement plans without raising external capital.

Volatile net profit margins

Continued volatility in net margins points to fragile profitability stemming from cost structure or pricing issues. This reduces earnings visibility and makes long-term planning harder, limiting confidence that recent margin improvements will be durable absent structural operational fixes.

Sumeet Industries Limited Business Overview & Revenue Model

Company Description

Sumeet Industries Limited manufactures and sells yarns in India. The company provides polyester and textile grade chips, as well as partially oriented, fully draw, texturized, micro filament, carpet, bright, and dope dyed black yarns. It also exports its products to Egypt, Tunisia, Saudi Arabia, China, Argentina, Poland, Portugal, Morocco, Columbia, Bangladesh, Russia, Ethiopia, Mexico, Nepal, Brazil, Peru, Algeria, Thailand, the United States, Singapore, Turkey, Kenya, etc. The company was formerly known as Sumeet Synthetics Limited and changed its name to Sumeet Industries Limited in 1996. Sumeet Industries Limited was incorporated in 1988 and is based in Surat, India.

How the Company Makes Money

Sumeet Industries Limited generates revenue primarily through the sale of its kitchen appliances, which include mixer grinders, blenders, and other related products. The company leverages its established brand reputation to attract both retail and wholesale customers, thus maintaining a steady sales volume. Key revenue streams include both direct sales through physical retail outlets and online platforms, allowing access to a broader market. Additionally, Sumeet Industries may engage in partnerships with distributors and retailers to enhance its market reach. By focusing on product innovation and quality, the company aims to retain customer loyalty and drive repeat purchases, significantly contributing to its overall earnings.

Sumeet Industries Limited Financial Statement Overview

Summary

Weak overall fundamentals driven by inconsistent revenue and volatile net margins, plus high leverage (high debt-to-equity and low equity ratio). Improving cash generation is a partial offset, supported by strong free cash flow growth and healthy operating cash flow conversion.

Income Statement

Sumeet Industries has shown inconsistent revenue growth with a significant decline in the latest year. The gross profit margin improved substantially, but the net profit margin remains volatile, indicating profitability challenges. EBIT and EBITDA margins have improved but are still low, reflecting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The equity ratio is low, suggesting limited financial stability. Return on equity is positive but inconsistent, reflecting fluctuating profitability.

Cash Flow

Sumeet Industries has shown strong free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, the free cash flow to net income ratio indicates reliance on non-operational cash flows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.13B	10.03B	9.85B	10.33B	8.94B	5.74B
Gross Profit	2.07B	2.05B	-514.13M	-9.43M	852.96M	581.62M
EBITDA	1.42B	123.17M	-395.40M	-292.22M	530.78M	268.67M
Net Income	1.83B	1.70B	-590.12M	-587.22M	29.14M	-71.16M
Balance Sheet
Total Assets	4.71B	4.28B	4.28B	4.55B	5.97B	6.25B
Cash, Cash Equivalents and Short-Term Investments	344.63M	404.16M	211.09M	46.27M	3.06M	8.34M
Total Debt	979.65M	711.70M	4.90B	4.89B	5.21B	5.53B
Total Liabilities	2.68B	2.43B	6.04B	5.71B	6.50B	6.79B
Stockholders Equity	2.03B	1.85B	-1.77B	-1.16B	-528.22M	-543.72M
Cash Flow
Free Cash Flow	-326.12M	4.07B	147.81M	720.99M	593.05M	219.40M
Operating Cash Flow	-161.31M	4.10B	147.91M	729.63M	605.24M	236.06M
Investing Cash Flow	-127.52M	-8.64M	7.29M	-7.74M	5.33M	11.15M
Financing Cash Flow	229.30M	-3.90B	9.62M	-678.68M	-615.84M	-244.02M

Sumeet Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUMEETINDS, the sentiment is Positive. The current price of 26.14 is below the 20-day moving average (MA) of 27.59, below the 50-day MA of 27.03, and below the 200-day MA of 27.31, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 66.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SUMEETINDS.

Sumeet Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JOCIL	51 Neutral	₹904.55M	20.34	―	0.34%	―	―
SUMEETINDS	49 Neutral	₹15.72B	44.64	―	―	0.58%	―
RAMANEWS	49 Neutral	₹5.01B	-11.89	―	―	―	―
PEARLPOLY	44 Neutral	₹278.79M	-5.93	―	―	―	―

Sumeet Industries Limited Corporate Events

Sumeet Industries Seeks Reclassification of Erstwhile Promoters as Public Shareholders

Sumeet Industries Limited has applied to the stock exchanges to reclassify its erstwhile promoters and promoter group as public shareholders under Regulation 31A(9) of SEBI’s Listing Obligations and Disclosure Requirements, following the approval of a resolution plan under the Insolvency and Bankruptcy Code by the National Company Law Tribunal. The reclassification request covers multiple individual and corporate entities that now hold no shares in the company, signaling a formal severance of promoter status and potentially paving the way for a more diversified shareholding structure and new controlling interests post-insolvency resolution.