Suryalata Spinning Mills Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹370.50−₹2.80 (−0.75%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Suryalata Spinning Mills Limited manufactures and sells synthetic yarns for knitting, weaving, and technical applications. The company operates through Textile Spinning and Power Solar Energy segments.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees499

Annual revenue₹482 Cr

How does it make money?

Turns over ₹482 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 499 employees supports ₹96.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹96.7 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.7% 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.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -0% while net margin moved +3% 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-0%

Margin effect+3%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.0% a year
✗ Profit CAGR of only 1.1%

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

74/ 100

Cheap

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

4.5x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 94% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -94%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.6x

PEG

3.93

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.0% to 11.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.0% to 12.7% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 watch

🟡Debt is increasingFinancial
Total debt is up 25% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 42% against revenue up -0% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 94% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Returns on shareholder capital are falling
ROE has dropped from 15.0% to 11.9%. 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.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

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

1EBITDA margin holds above 12%✓ 13.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 10%✓ 12.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 10 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

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹158 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.5x

Cheap

Cheap against the generic band

P/B Ratio

0.53x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹83.23

Profitable

Profitable on a per-share basis

ROE

11.9%

Moderate

Moderate capital efficiency

ROCE

12.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

-1.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

1.0%

Modest

Slow profit growth

Dividend Yield

0.54%

Modest

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

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.4%

Average

Average margins

Net Margin

7.4%

Average

Average bottom-line conversion

Current Ratio

1.61

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

26.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹483 Cr	₹453 Cr	₹493 Cr	₹482 Cr	-0.0%
EBITDA	₹64 Cr	₹46 Cr	₹43 Cr	₹67 Cr	+1.2%
EBITDA Margin	13.3%	10.2%	8.6%	13.8%	—
PAT (Net Profit)	₹34 Cr	₹19 Cr	₹15 Cr	₹36 Cr	+1.1%
EPS	₹80.48	₹43.7	₹36.03	₹83.91	+1.4%
ROE	15.0%	7.5%	5.8%	11.9%	—
ROCE	18.0%	9.7%	7.8%	12.7%	—
Total Debt	₹65 Cr	₹95 Cr	₹65 Cr	₹82 Cr	+7.8%
Free Cash Flow	₹18 Cr	-₹37 Cr	₹28 Cr	-₹3 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.0% a year).

🟡 EBITDA has been broadly flat over 3 years (1.2% a year).

🟡 EBITDA Margin has held roughly flat at 13.8% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.1% a year).

🟡 EPS has been broadly flat over 3 years (1.4% a year).

🔴 ROE has fallen from 15.0% to 11.9% over 3 years (-3.1 pts).

🔴 ROCE has fallen from 18.0% to 12.7% over 3 years (-5.3 pts).

🔴 Total Debt has grown at 7.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹18 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹442 Cr

Total Liabilities

₹144 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹49 Cr

Capex

-₹52 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.3%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

14 Aug 2026

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 positive1 mixed4 general

Suryalata Spinning Mills (SURYALA.NS) Edges Up 0.97% to ₹380 as Range Holds - Systematic Flow

https://www.siam.in/, 12 Oct

Suryalata Spinning Mills Share Price Falls on Q1 Results

Univest, 27 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Suryalata Spinning Mills Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Suryalata FY26 net profit rises 131% to ₹3,546 lakh

scanx.trade, 25 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Suryalata Spinning Mills (BSE:514138) - Stock Analysis

Simply Wall Street, 01 Dec

Multibagger Manish Goel stock hits life-time high despite stock market crash

Livemint, 10 Mar

Watch Items

Revenue growth is negative (-1.8%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability

WeakGrowth · Risk

Points for each in the Score ↑

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.

1 of 4 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑