Suryalakshmi Cotton Mills Reports Record Sales Amid Rising Debt Concerns

Suryalakshmi Cotton Mills, operating in the Garments & Apparels sector, has recently undergone an evaluation adjustment that reflects notable changes in its financial metrics. The company's financial performance for the quarter ending March 2025 has shown significant growth, with a profit before tax less other income reaching Rs 1.89 crore, marking a substantial increase compared to the previous four-quarter average. Additionally, net sales have reached a record high of Rs 246.37 crore, and earnings per share have also peaked at Rs 1.37.
In terms of valuation, Suryalakshmi Cotton Mills has transitioned from a very attractive to an attractive valuation grade. The current price-to-earnings ratio stands at 37.46, while the enterprise value to EBITDA is recorded at 7.83. The company’s return on capital employed is at 6.13%, indicating a moderate level of profitability relative to its capital base.

Despite these positive indicators, the company faces challenges, including a high debt-to-EBITDA ratio of 4.46 times, which suggests difficulties in servicing its debt. Over the past year, Suryalakshmi Cotton Mills has generated a return of 5.40%, while its profits have seen a decline of 30%.

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