Suryalakshmi Cotton Mills Ltd. (SURYALAXMI) AI Stock Analysis

• Market Cap: ₹940.08M
• Dividend Yield: N/A
• Average Volume (3M): 2.19K
• Price to Earnings (P/E): 53.6
• Beta (1Y): 1.01
• Revenue Growth: 4.60%
• EPS Growth: 226.64%
• Country: IN
• Employees: 2,309
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.28
• 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: ₹51.00 ▼(-14.57% Downside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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

Revenue Growth

Suryalakshmi’s reported 3.95% revenue increase reflects steady demand for its yarn and supports higher capacity utilization. Consistent top-line growth underpins operational scale benefits in spinning, aiding long-term cost absorption and steadyable cash generation if maintained.

Gross Margin / Production Efficiency

A 37.85% gross margin indicates efficient spinning operations and favorable input-to-output conversion. Durable production efficiency gives the company a buffer against commodity swings and supports competitive pricing to retain downstream customers over the medium term.

Cash Conversion Quality

Strong operating cash flow relative to net income (2.14x) signals earnings quality and effective working capital management. This persistent cash conversion trend supports funding of operations and near-term capex without immediate reliance on external financing.

Negative Factors

Low Net Profitability

A 4.59% net margin leaves limited room for absorbing raw material or energy cost shocks and restricts retained earnings growth. Persistently thin bottom-line profitability limits reinvestment, dividend capacity and resilience versus peers in prolonged adverse cycles.

Free Cash Flow Weakness

Negative free cash flow growth and a negative FCF-to-net-income ratio indicate the company struggles to convert earnings to distributable cash after capex. Over time this can force external funding, constrain strategic investments and increase refinancing risk.

Leverage and Low ROE

A debt/equity ratio around 1.05 alongside a very low ROE (1.35%) implies modest leverage with poor returns on capital. This combination raises concern about capital efficiency and financial flexibility, increasing vulnerability to interest cost rises or demand downturns.

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. primarily makes money by manufacturing and selling yarn (mainly cotton yarn, and potentially blended/specialty variants where offered) to business customers such as fabric producers, knitwear manufacturers, and other textile processors. Revenue is recognized from sales of these manufactured goods, with earnings driven by (i) sales volumes, (ii) product mix (e.g., counts/quality/specialty yarns), and (iii) realization spreads between input costs (especially raw cotton/fiber, power, and other manufacturing overheads) and yarn selling prices. The company’s profitability is therefore sensitive to commodity price movements (cotton/fiber), energy costs, capacity utilization of its spinning operations, and demand conditions in domestic and export textile markets. Specific details on material partnerships, customer concentration, or segment-wise revenue breakdown are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.10B	7.92B	7.62B	8.42B	7.59B	4.75B
Gross Profit	2.85B	3.00B	2.21B	814.22M	2.33B	1.34B
EBITDA	561.93M	557.42M	432.19M	526.36M	901.79M	481.03M
Net Income	55.06M	36.33M	36.08M	104.01M	2.16M	-28.21M
Balance Sheet
Total Assets	7.20B	7.49B	7.28B	6.54B	6.97B	6.88B
Cash, Cash Equivalents and Short-Term Investments	75.85M	10.46M	3.81M	64.33M	71.49M	132.21M
Total Debt	2.61B	2.83B	2.26B	1.98B	2.60B	3.03B
Total Liabilities	4.49B	4.79B	4.62B	3.91B	4.45B	4.54B
Stockholders Equity	2.71B	2.70B	2.66B	2.63B	2.52B	2.34B
Cash Flow
Free Cash Flow	181.12M	-136.29M	-139.65M	745.67M	407.67M	286.41M
Operating Cash Flow	194.37M	77.60M	194.05M	993.14M	540.06M	334.05M
Investing Cash Flow	159.79M	-328.14M	-253.91M	-25.06M	-76.68M	176.99M
Financing Cash Flow	-361.10M	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: 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 59.7 is above the 20-day moving average (MA) of 54.80, above the 50-day MA of 56.77, and below the 200-day MA of 63.45, indicating a bearish trend. The MACD of -1.75 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 47.91 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
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LAMBODHARA	62 Neutral	₹925.68M	13.04	―	0.42%	13.13%	-2.13%
BHANDARI	59 Neutral	₹1.07B	10.89	―	0.51%	2.92%	-0.09%
LOYALTEX	56 Neutral	₹984.72M	-1.31	―	―	-30.97%	80.99%
SURYALAXMI	55 Neutral	₹940.08M	53.55	―	―	4.60%	226.64%
SALONA	52 Neutral	₹1.42B	104.73	―	0.36%	-13.03%	-81.40%