Suditi Industries Ltd.
Q3 FY2025 Stock Research Report
Suditi Industries Ltd.
Value pick multibagger for long term
1. Market Overview & Key Stock Metrics
Market Cap
₹98.5 Cr.
Current Price
₹37.4
52-Week Range
₹11.6 – ₹54.7
Book Value
₹-8.98
Debt
₹9.27 Cr.
Promoter Holding
71.7% (+4.63% in 3Y)
Total Equity Shares
2.64 Cr.
3-Year Growth
Sales: 10.2% | Profit: 14.0%
2. Q3 FY2025 Financial Performance
Revenue & Profitability
- Revenue: ₹2,399.44 Lakhs (+44.3% QoQ, -1.02% YoY)
- Operating Margin: -9.65%
- PAT: ₹-5.36 Cr. (64.7% YoY improvement)
- Sales Growth CAGR: 10.2% (3 years)
Key Expenses
- Material Costs: ₹1,495.89 Lakhs (62.3%)
- Employee Benefits: ₹103.66 Lakhs (4.3%)
- Depreciation: ₹68.37 Lakhs
- Finance Costs: ₹11.49 Lakhs
- Other Expenses: ₹658.71 Lakhs
3. Business Strategy & Growth Plans
Brand Acquisition: Gini & Jony
- Acquisition of iconic kidswear brand
- Enhanced retail and e-commerce presence
- Access to established distribution channels
- Revenue impact expected from H2 FY2026
Retail Expansion Strategy
- Omni-Channel Strategy across EBOs and LFS
- Growing licensing business
- Sports apparel focus through subsidiaries
Subsidiary & Joint Venture Updates
- Suditi Sports Apparel Limited: E-commerce focus
- Suditi Design Studio Limited: Currently inactive
- SAA & Suditi Retail: Managing “Nush” brand
4. Competitive Landscape & Industry Analysis
Industry Overview
India’s apparel market growing at ~10% CAGR, driven by rising disposable income and e-commerce growth.
Competitive Positioning
| Company | Market Cap | Revenue | Profitability | Growth Potential |
|---|---|---|---|---|
| Suditi Industries | ₹98.5 Cr. | ₹71.6 Cr. | Loss-Making | High |
| Page Industries | ₹40,000 Cr. | ₹4,000 Cr. | Highly Profitable | Moderate |
| Aditya Birla Fashion | ₹25,000 Cr. | ₹12,000 Cr. | Strong Margins | High |
| Arvind Fashions | ₹4,000 Cr. | ₹4,500 Cr. | Moderate | High |
| Raymond Apparel | ₹1,500 Cr. | ₹3,000 Cr. | Moderate | High |
Risks & Challenges
- High competition from industry giants
- Supply chain risks and cotton price fluctuations
- Execution risk in Gini & Jony integration
- Financial risk from negative reserves
5. Financial Valuation & Investment Thesis
Valuation Metrics
- Price-to-Sales (P/S): 1.37x
- Price-to-Book (P/B): Negative
- EV/EBITDA: Negative
Fair Value Estimates
- Base Case: ₹30-₹40
- Bull Case: ₹50+
- Bear Case: ₹15-₹20
6. Conclusion & Final Recommendation
Strengths
- ✅ Strong promoter holding (71.7%)
- ✅ Brand expansion through Gini & Jony
- ✅ Omni-channel retail growth potential
Weaknesses
- ❌ Negative net worth & weak balance sheet
- ❌ Consistently loss-making operations
- ❌ Uncertainty in JV partnerships
Investment Rating
| Investment Horizon | Risk Level | Potential Return | Investment View | ||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Short-Term (1 year) | Very High | Uncertain | Avoid / Watch | ||||||||||||||||||||||||||||||||||||||||||||
Mid-Term (2-3 years)
1. Market Overview & Key Stock MetricsMarket Cap₹98.5 Cr. Current Price₹37.4 52-Week Range₹11.6 – ₹54.7 Book Value₹-8.98 Debt₹9.27 Cr. Promoter Holding71.7% (+4.63% in 3Y) Total Equity Shares2.64 Cr. 3-Year GrowthSales: 10.2% | Profit: 14.0% 2. Q3 FY2025 Financial PerformanceRevenue & Profitability
Key Expenses
3. Business Strategy & Growth PlansBrand Acquisition: Gini & Jony
Retail Expansion Strategy
Subsidiary & Joint Venture Updates
4. Competitive Landscape & Industry AnalysisIndustry OverviewIndia’s apparel market growing at ~10% CAGR, driven by rising disposable income and e-commerce growth. Competitive Positioning
Risks & Challenges
5. Financial Valuation & Investment ThesisValuation Metrics
Fair Value Estimates
6. Conclusion & Final RecommendationStrengths
Weaknesses
Investment Rating
7. DisclaimerThis report is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making any investment decisions. The stock is high risk, and only those with high-risk tolerance should consider investing. Other PostsComments |
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