Sportking India Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹222.00+₹4.64 (+2.13%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Sportking India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sportking India Limited manufactures, purchases, and sells textile yarns in India and internationally. It offers cotton, polyester/cotton blended, fancy, dyed, grey, and acrylic and acrylic/polyester blended yarns, as well as knitted fabrics.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees5,979

Annual revenue₹2,438 Cr

How does it make money?

Turns over ₹2,438 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 5,979 employees supports ₹40.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin11.7%

Net margin4.9%

Revenue / employee₹40.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 13.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE13.1%

ROE10.7%

Peer median ROE25.9%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 32.4% and earnings to grow about 44.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+32.4%

Est. earnings growth+44.2%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +13% while net margin moved -20% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+13%

Margin effect-20%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.2% — barely ahead of inflation
✗ Profit has declined at 3.2% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

50/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

17.5x

3Y Median

13.6x

40 monthly readings · mean 14.8x · range 7.8x–26.6x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 28% above its 3y median of 13.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 75% below the peer median of 69.2x.

vs. its own history

Expensive

13.6x median over 40 months · +28%

vs. sector peers

Cheap

69.2x median of 4 peers · -75%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

17.5x

P/B

2.56x

EV/EBITDA

11.5x

PEG

—

Dividend Yield

0.45%

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 65% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 13.3% to 11.7% over 3 years.
Return on equity is falling
ROE has dropped from 14.7% to 10.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 16.3% to 13.1% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 70% against revenue growth of 13% — customers are taking longer to pay.
Valuation above its historical average
At 17.5x the stock trades 28% above its own median of 13.6x.

Red Flags

2 items require attention · 2 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 70% against revenue up 13% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 75% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹258 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 13.3% to 11.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 70% against revenue up 13%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 28% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 4.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 14.7% to 10.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 10%✓ 11.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.2% CAGR
Latest reported year was 20.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹258 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹2,825 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.5x

Fair

Fairly valued against the generic band

P/B Ratio

2.56x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.69

Profitable

Profitable on a per-share basis

ROE

10.7%

Moderate

Moderate capital efficiency

ROCE

13.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.42x

Low

Conservative leverage

Revenue Growth (YoY)

20.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

115.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.45%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹258 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹222

P/E (Forward)

9.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

15.4%

Good

Healthy core-business profitability

Net Margin

6.2%

Average

Average bottom-line conversion

Current Ratio

3.25

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.78

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

208.5 / 212.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,157 Cr	₹2,317 Cr	₹2,457 Cr	₹2,438 Cr	+4.2%
EBITDA	₹286 Cr	₹231 Cr	₹287 Cr	₹285 Cr	-0.1%
EBITDA Margin	13.3%	10.0%	11.7%	11.7%	—
PAT (Net Profit)	₹132 Cr	₹70 Cr	₹113 Cr	₹120 Cr	-3.2%
EPS	₹9.93	₹5.5	₹8.88	₹9.39	-1.9%
ROE	14.7%	7.8%	11.2%	10.7%	—
ROCE	16.3%	10.8%	13.8%	13.1%	—
Total Debt	₹474 Cr	₹875 Cr	₹586 Cr	₹472 Cr	-0.2%
Free Cash Flow	₹156 Cr	-₹341 Cr	₹345 Cr	₹258 Cr	+18.2%

🟢 Revenue has grown at 4.2% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-0.1% a year).

🔴 EBITDA Margin has fallen from 13.3% to 11.7% over 3 years (-1.5 pts).

🔴 PAT (Net Profit) has shrunk at 3.2% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (-1.9% a year).

🔴 ROE has fallen from 14.7% to 10.7% over 3 years (-3.9 pts).

🔴 ROCE has fallen from 16.3% to 13.1% over 3 years (-3.3 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.2% a year).

🟢 Free Cash Flow has grown at 18.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,744 Cr

Total Liabilities

₹628 Cr

Total Debt

₹472 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹292 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.5%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

04 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹273

+23.0% vs CMP

Target Range

₹273 – ₹273

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

Sportking India Share Price

Upstox, 16 Oct

Sportking India Share Price: price action and fundamentals

Univest, 14 Oct

Momentum Stocks: Sportking India, TRF, Jindal Poly Films gain up to 13% on sheer momentum

Moneycontrol.com, 14 Oct

What Does Sportking India Limited's (NSE:SPORTKING) Share Price Indicate?

Simply Wall Street, 16 Jul

Sportking India soars as Q1 PAT more than doubles to Rs 76 cr

Business Standard, 03 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Sportking India Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong17.8/20

🔴GrowthWeak5.7/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair7.3/15

🟡RiskModerate5.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 10%11.7%
✓Revenue growth stays above 4% a year4.2% CAGR
✓Free cash flow remains positive₹258 Cr
✓Debt / EBITDA stays below 2x1.7x
✓ROCE stays above 10%13.1%