High Gross Profit MarginA 37.85% gross margin indicates efficient spinning operations and cost control at the production level. This structural margin provides a durable buffer against cotton and energy cost swings, supporting sustained competitiveness, reinvestment capacity, and pricing flexibility over months.

Strong Cash ConversionAn operating cash flow to net income ratio of 2.14 shows the business converts accounting profit into cash well, reducing earnings quality risk. This persistent cash conversion supports working-capital needs and operational continuity even when margins fluctuate.

Stable B2B Yarn Business ModelA focused B2B yarn manufacturing model selling into fabric and apparel supply chains provides recurring industrial demand and long-term customer relationships. Structural demand from textile producers and potential for specialty yarns supports volume visibility and steady revenue over months.

Bears Say

Negative Free Cash Flow GrowthNegative free cash flow growth signals persistent cash drain after capex and working-capital needs, limiting the firm's ability to self-fund expansion, pay down debt, or return capital. Over several months this constrains strategic optionality and increases financing reliance.

Elevated LeverageA D/E of ~1.05 and equity ratio of 36% reflect meaningful leverage for a commodity-exposed manufacturer. This structural indebtedness raises interest and refinancing sensitivity, reducing financial flexibility and increasing vulnerability to demand or input-cost shocks over the medium term.

Low Profitability And ReturnsLow net and EBITDA margins alongside a 1.35% ROE indicate limited ability to convert sales into shareholder returns. Structurally thin profitability constrains retained earnings for growth and weakens resilience to commodity volatility, making long-term value creation challenging.

Suryalakshmi Cotton Mills Ltd. News

Suryalakshmi Cotton Mills Closes Trading Window Ahead of Q3 FY2026 Results

Suryalakshmi Cotton Mills Ltd. ( ($IN:SURYALAXMI) ) just unveiled an update. Suryalakshmi Cotton Mills Ltd. has announced the...

3M ago

Suryalakshmi Cotton Mills Announces Internal Share Transfer Among Promoters

Suryalakshmi Cotton Mills Ltd. ( ($IN:SURYALAXMI) ) has issued an announcement. Suryalakshmi Cotton Mills Ltd. announced an inter-se...

3M ago

SURYALAXMI FAQ

What was Suryalakshmi Cotton Mills Ltd.’s price range in the past 12 months?

Suryalakshmi Cotton Mills Ltd. lowest stock price was ₹48.10 and its highest was ₹82.40 in the past 12 months.

What is Suryalakshmi Cotton Mills Ltd.’s market cap?

Suryalakshmi Cotton Mills Ltd.’s market cap is ₹1.05B.

When is Suryalakshmi Cotton Mills Ltd.’s upcoming earnings report date?

Suryalakshmi Cotton Mills Ltd.’s upcoming earnings report date is May 12, 2026 which is in 67 days.

How were Suryalakshmi Cotton Mills Ltd.’s earnings last quarter?

Suryalakshmi Cotton Mills Ltd. released its earnings results on Feb 11, 2026. The company reported ₹0.277 earnings per share for the quarter, beating the consensus estimate of N/A by ₹0.277.

Is Suryalakshmi Cotton Mills Ltd. overvalued?

According to Wall Street analysts Suryalakshmi Cotton Mills Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Suryalakshmi Cotton Mills Ltd. pay dividends?

Suryalakshmi Cotton Mills Ltd. pays a Annually dividend of ₹1 which represents an annual dividend yield of N/A. See more information on Suryalakshmi Cotton Mills Ltd. dividends here

What is Suryalakshmi Cotton Mills Ltd.’s EPS estimate?

Suryalakshmi Cotton Mills Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Suryalakshmi Cotton Mills Ltd. have?

Suryalakshmi Cotton Mills Ltd. has 18,805,290 shares outstanding.

What happened to Suryalakshmi Cotton Mills Ltd.’s price movement after its last earnings report?

Suryalakshmi Cotton Mills Ltd. reported an EPS of ₹0.277 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 15.901%.

Which hedge fund is a major shareholder of Suryalakshmi Cotton Mills Ltd.?

Currently, no hedge funds are holding shares in IN:SURYALAXMI

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Suryalakshmi Cotton Mills Ltd.

Suryalakshmi Cotton Mills Limited manufactures and sells cotton and blended yarns, denim fabrics, and garments in India, Bangladesh, Guatemala, Ethiopia, Madagascar, Mexico, Kenya, Singapore, South Korea, and internationally. The company provides spun polyester, polyester cotton combed/carded blend, polyester viscose blend, cotton OE and ring spun, slub and fancy, core spun elastane, 2 fold, eli-twisted, and compact yarns. The company also offers mercerized, coated, normal finish, cotton/polyester, yarn dyed/over dyed, and mill washed stretch and rigid denims. It serves private labels, fashion brands, and retail chains. The company was incorporated in 1962 and is based in Secunderabad, India.