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): 19.5
• Beta (1Y): 1.20
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹63.00 ▲(12.06% 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 Ltd. (SURYALAXMI) is a prominent player in the textile industry, primarily engaged in the production of cotton textiles. The company operates across various sectors, including the manufacturing of yarn, fabric, and garments, catering to both domestic and international markets. With a history of over three decades, Suryalakshmi focuses on quality and innovation in its product offerings, which include a diverse range of cotton and blended fabrics, as well as value-added textile solutions.

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: 56.22
• 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:SURYALAXMI, the sentiment is Negative. The current price of 56.22 is below the 20-day moving average (MA) of 59.28, below the 50-day MA of 60.80, and below the 200-day MA of 65.47, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 is Neutral, 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	₹1.28B	17.44	―	0.41%	13.13%	-2.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BHANDARI	60 Neutral	₹972.20M	11.49	―	0.50%	2.92%	-0.09%
SURYALAXMI	55 Neutral	₹1.07B	19.54	―	―	4.60%	226.64%
SALONA	55 Neutral	₹1.42B	112.02	―	0.36%	-13.03%	-81.40%
LOYALTEX	46 Neutral	₹1.02B	-6.53	―	―	-30.97%	80.99%

Suryalakshmi Cotton Mills Ltd. Corporate Events

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.

Suryalakshmi Cotton Mills Ensures Regulatory Compliance with Latest SEBI Certification

Suryalakshmi Cotton Mills Ltd. has submitted a certificate to the stock exchanges as per the requirements of Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. This certificate, issued by KFin Technologies Limited, confirms the dematerialization and rematerialization of securities for the quarter ending September 30, 2025. This compliance ensures transparency and adherence to regulatory standards, potentially reinforcing investor confidence and maintaining the company’s credibility in the market.