Sai Silk's three-year average ROE and ROCE were 17.1 and 17.9 per cent, respectively
annual revenue and net profit grew by 41.3 and 336 per cent, respectively, between FY21 and FY23
stock will trade at a P/E and P/B of 34.9 and 3.4 times
These figures are lower than its peers' median P/E and average P/B, respectively
volatile commodity prices and ever-changing trends in fashion and consumer preferences can pose challenges for the business.
Telangana and Andhra Pradesh, as the two states generated over 80 per cent of the company's revenue in FY23. Sai Silks
sarees being its largest segment (68.3 per cent of revenue in FY23)
As per the nature of the business, the company needs to maintain a high inventory level
It leads to increased working capital requirements and may result in losses as inventory loses value, especially in the fashion business, over time.
As per a report from Technopak
women's apparel market will grow by around 21 per cent annually till 2027,
Does the company have a credible moat? No,
the company's promoters have pledged 16.9 per cent of their shares
cash flow from operations was negative in FY21.
net debt-to-equity ratio was 1.2 times in FY23.
company has high working capital requirements
cash conversion cycle stood at 125 days in FY23
it finances its working capital through internal accruals and bank overdrafts
contingent liabilities as a percentage of equity is 0.3 per cent.
offer an operating earnings yield of 4.4 per cent on its enterprise value.
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