Suryalakshmi Cotton Mills Ltd. (SURYALAXMI) AI Stock Analysis

• Market Cap: ₹1.07B
• Dividend Yield: N/A
• Average Volume (3M): 2.19K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 1.19
• Revenue Growth: 4.60%
• EPS Growth: 226.64%
• Country: IN
• Employees: 2,309
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.16
• Shares Outstanding: 18,805,290
• 10 Day Avg. Volume: 823
• 30 Day Avg. Volume: 2,193
• PEG Ratio: 55.93
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -7.77
• 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: 55 Neutral
• Price Target: ₹63.00 ▲(5.53% Upside)

Suryalakshmi Cotton Mills Ltd. has a moderate overall stock score driven by stable financial performance and valuation. However, technical indicators suggest a bearish trend, which impacts the overall attractiveness of the stock.

Positive Factors

Vertically Integrated Business Model

This integration helps reduce costs and enhance quality, providing a competitive advantage in the textile industry by ensuring consistent product quality and cost efficiency.

Revenue Growth

Stable revenue growth indicates a consistent demand for products and effective market strategies, supporting long-term business sustainability.

Efficient Production Processes

A strong gross profit margin suggests effective cost management and operational efficiency, which can enhance profitability over time.

Negative Factors

Limited Profitability

Low net profit margins can restrict the company's ability to reinvest in growth initiatives and weather economic downturns, impacting long-term growth potential.

Negative Free Cash Flow

Negative free cash flow can limit the company's ability to invest in new projects, pay down debt, or return capital to shareholders, affecting future growth and financial stability.

Moderate Leverage

Moderate leverage increases financial risk, potentially impacting the company's ability to secure financing or manage interest costs, which could constrain future growth opportunities.

Suryalakshmi Cotton Mills Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Suryalakshmi Cotton Mills Ltd. generates revenue primarily through the sale of its cotton yarn, fabrics, and garments. The company operates a vertically integrated business model, which allows it to control various stages of production, from spinning cotton into yarn to weaving and finishing fabrics. This integration helps in reducing costs and enhancing quality. Key revenue streams include direct sales to apparel manufacturers, retail distribution, and exports to international markets. Additionally, Suryalakshmi may engage in strategic partnerships with other textile firms, retailers, and distributors to expand its market reach and drive sales. The company's focus on sustainable practices and quality certifications also positions it favorably in the market, potentially attracting premium pricing and loyal customers.

Suryalakshmi Cotton Mills Ltd. Financial Statement Overview

Summary

Suryalakshmi Cotton Mills Ltd. shows moderate financial health with stable revenue growth and efficient production processes. However, profitability is limited, and there are concerns regarding cash flow sustainability and moderate leverage.

Income Statement

Suryalakshmi Cotton Mills Ltd. demonstrated moderate revenue growth with a 3.95% increase in the latest year. The gross profit margin is healthy at 37.85%, reflecting efficient production, while the net profit margin is low at 4.59%, indicating limited profitability. EBITDA margin at 7.04% suggests decent operational efficiency, but EBIT margin at 4.09% shows room for improvement in cost management.

Balance Sheet

The debt-to-equity ratio stands at 1.05, indicating a balanced leverage profile, but slightly on the higher side. Return on Equity (ROE) is modest at 1.35%, suggesting low returns for shareholders. The equity ratio of 36.00% indicates a stable capital structure, but with potential debt-related risks.

Cash Flow

The company experienced a negative free cash flow growth rate, highlighting challenges in generating cash. Operating cash flow to net income ratio is strong at 2.14, showing good cash conversion, while the free cash flow to net income ratio is negative, reflecting issues in sustaining free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.11B	7.92B	7.62B	8.42B	7.59B	4.75B
Gross Profit	3.05B	3.00B	2.21B	814.22M	2.33B	1.34B
EBITDA	564.89M	557.42M	432.19M	526.36M	901.79M	481.03M
Net Income	46.68M	36.33M	36.08M	104.01M	2.16M	-28.21M
Balance Sheet
Total Assets	0.00	7.49B	7.28B	6.54B	6.97B	6.88B
Cash, Cash Equivalents and Short-Term Investments	237.70M	10.46M	3.81M	64.33M	71.49M	132.21M
Total Debt	0.00	2.83B	2.26B	1.98B	2.60B	3.03B
Total Liabilities	-2.70B	4.79B	4.62B	3.91B	4.45B	4.54B
Stockholders Equity	2.70B	2.70B	2.66B	2.63B	2.52B	2.34B
Cash Flow
Free Cash Flow	0.00	-136.29M	-139.65M	745.67M	407.67M	286.41M
Operating Cash Flow	0.00	77.60M	194.05M	993.14M	540.06M	334.05M
Investing Cash Flow	0.00	-328.14M	-253.91M	-25.06M	-76.68M	176.99M
Financing Cash Flow	0.00	257.31M	-1.18M	-975.13M	-489.97M	-453.03M

Suryalakshmi Cotton Mills Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SURYALAXMI, the sentiment is Negative. The current price of 59.7 is above the 20-day moving average (MA) of 58.45, below the 50-day MA of 59.77, and below the 200-day MA of 65.10, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of 13.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SURYALAXMI.

Suryalakshmi Cotton Mills Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAMBODHARA	69 Neutral	₹1.21B	16.81	―	0.42%	13.13%	-2.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BHANDARI	60 Neutral	₹953.00M	11.40	―	0.51%	2.92%	-0.09%
SURYALAXMI	55 Neutral	₹1.07B	19.13	―	―	4.60%	226.64%
SALONA	55 Neutral	₹1.26B	99.75	―	0.36%	-13.03%	-81.40%
LOYALTEX	46 Neutral	₹1.01B	-6.28	―	―	-30.97%	80.99%

Suryalakshmi Cotton Mills Ltd. Corporate Events

Suryalakshmi Cotton Mills Closes Trading Window Ahead of Q3 FY2026 Results

Suryalakshmi Cotton Mills Ltd. has announced the closure of its trading window for designated persons, including promoters, directors, key managerial personnel, employees, connected persons and their immediate relatives, from January 1, 2026 until 48 hours after the declaration of its unaudited financial results for the quarter ending December 31, 2025. The move, made in compliance with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, aims to prevent any trading in the company’s shares by insiders during the sensitive results-preparation period, reinforcing governance standards and safeguarding minority investor interests, with the exact board meeting date for results approval to be communicated later.

Suryalakshmi Cotton Mills Announces Internal Share Transfer Among Promoters

Suryalakshmi Cotton Mills Ltd. announced an inter-se transfer of shares among its promoter group, involving the transfer of 1,194,000 shares, representing a 6.35% holding, from Mr. Vedant Agarwal to M/s. L.N. Agarwal Family Trust. This transaction, which falls under the exemptions provided by SEBI regulations, does not alter the aggregate holding of the promoter group, maintaining the company’s current ownership structure. This move is in compliance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and reflects internal restructuring within the promoter group without impacting external stakeholders.