Sutlej Textiles & Industries Ltd. (SUTLEJTEX) AI Stock Analysis

• Market Cap: ₹5.88B
• Dividend Yield: 2.53%
• Average Volume (3M): 13.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: -1.25%
• EPS Growth: 25.22%
• Country: IN
• Employees: 12,899
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Apparel - Manufacturers
• EPS (TTM): -1.84
• Shares Outstanding: 163,828,630
• 10 Day Avg. Volume: 8,157
• 30 Day Avg. Volume: 13,586
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹42.00
• Price Target Upside: 13.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: ₹42.00 ▲(13.21% Upside)

Sutlej Textiles & Industries Ltd. presents a mixed outlook. The primary concern is its financial performance, characterized by profitability challenges and negative returns on equity. Technical analysis provides some hope with potential recovery indications, although short-term volatility remains. Valuation metrics are poor due to net losses and a lack of dividends, making it less appealing to value and income investors.

Sutlej Textiles & Industries Ltd. Business Overview & Revenue Model

Company Description

Sutlej Textiles & Industries Ltd. (SUTLEJTEX) is a prominent Indian textile company with a robust presence in the textile manufacturing sector. The company specializes in producing a wide range of textile products including yarns, fabrics, and garments. Sutlej Textiles is known for its high-quality cotton and synthetic yarns, and it caters to both domestic and international markets. The company also engages in home textiles, offering products such as curtains, upholstery, and made-ups, establishing itself as a versatile player in the textile industry.

How the Company Makes Money

Sutlej Textiles & Industries Ltd. generates revenue primarily through the manufacturing and sale of yarns, which are its core product. The company operates spinning mills that produce a variety of yarns including cotton, synthetic, and blended yarns, which are supplied to fabric and garment manufacturers. In addition to yarns, Sutlej Textiles also earns revenue from its home textiles segment, which includes products like curtains, bedcovers, and upholstery fabrics. The company leverages its extensive distribution network and export strategies to reach various markets around the globe, contributing significantly to its earnings. Sutlej Textiles may also engage in strategic partnerships and collaborations to enhance its product offerings and market reach, thereby driving revenue growth.

Sutlej Textiles & Industries Ltd. Financial Statement Overview

Summary

Sutlej Textiles & Industries Ltd. faces profitability challenges with inconsistent revenue trends and negative net profit margins, despite improvements in gross profit margins. The balance sheet shows moderate leverage with stable equity financing, but negative returns on equity are concerning. Cash flow management is resilient, but revenue and profitability issues need addressing.

Income Statement

Sutlej Textiles & Industries Ltd. has shown inconsistent revenue trends with a recent decline in total revenue. The gross profit margin has improved significantly over time, indicating better cost management. However, the net profit margin remains negative due to significant net losses in recent years, reflecting ongoing challenges in profitability. The EBIT margin has also fluctuated, highlighting operational volatility.

Balance Sheet

The company's balance sheet reflects moderate financial leverage, with a stable debt-to-equity ratio despite fluctuations in total debt. The equity ratio suggests that a reasonable proportion of the firm's assets are financed by equity, providing some financial stability. However, the return on equity is negative, reflecting the net losses and indicating challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals a decline in operating cash flow, impacting free cash flow growth. The operating cash flow to net income ratio is strong, suggesting efficient cash generation relative to reported net losses. Despite challenges in free cash flow due to capital expenditures, the company has managed to maintain some level of free cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	26.99B	26.53B	30.27B	30.31B	18.66B
Gross Profit	8.45B	8.45B	12.48B	4.56B	7.39B
EBITDA	646.30M	-197.10M	2.51B	4.12B	1.33B
Net Income	-684.00M	-1.36B	372.80M	1.50B	-36.60M
Balance Sheet
Total Assets	20.51B	21.09B	24.32B	24.25B	21.39B
Cash, Cash Equivalents and Short-Term Investments	194.30M	52.50M	239.20M	134.70M	107.60M
Total Debt	8.79B	8.46B	9.53B	9.43B	9.09B
Total Liabilities	11.56B	11.48B	13.23B	13.25B	11.84B
Stockholders Equity	8.95B	9.61B	11.09B	11.00B	9.55B
Cash Flow
Free Cash Flow	6.30M	1.66B	535.30M	95.00M	-128.60M
Operating Cash Flow	660.30M	2.22B	1.96B	950.20M	887.40M
Investing Cash Flow	-250.30M	-382.50M	-1.18B	-756.00M	-915.40M
Financing Cash Flow	-319.60M	-1.90B	-805.80M	-184.20M	33.70M

Sutlej Textiles & Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUTLEJTEX, the sentiment is Negative. The current price of 37.1 is below the 20-day moving average (MA) of 43.44, below the 50-day MA of 42.33, and below the 200-day MA of 48.73, indicating a bearish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 28.34 is Positive, neither overbought nor oversold. The STOCH value of 8.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUTLEJTEX.

Sutlej Textiles & Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	70 Outperform	¥179.17B	11.24	5.69%	3.09%	2.75%	-12.76%
INDOBORAX	67 Neutral	₹8.74B	22.60		0.38%	-3.77%	-9.20%
TPLPLASTEH	66 Neutral	₹5.94B	24.12		1.06%	12.96%	19.11%
VISAKAIND	66 Neutral	₹7.23B	18.46		0.60%	3.58%	―
PREMIERPOL	64 Neutral	₹5.11B	19.59		0.29%	3.49%	20.19%
PRECOT	61 Neutral	₹5.94B	18.05		0.61%	-1.23%	95.96%
SUTLEJTEX	49 Neutral	₹5.88B	―		2.53%	-1.25%	25.22%