How has been the historical performance of Sayaji (Indore)?

Nov 20 2025 10:58 PM IST

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Sayaji (Indore) has shown growth in net sales and profits over the past three years, with net sales reaching 105.68 Cr in March 2025 and profit after tax increasing to 10.57 Cr. However, the company faces challenges with rising liabilities and negative cash flow from investing activities.

Revenue and Profitability Trends

Over the three-year period ending March 2025, Sayaji (Indore) recorded a consistent increase in net sales, rising from ₹99.23 crores in March 2023 to ₹105.68 crores in March 2025. Despite a slight dip in March 2024 to ₹96.17 crores, the overall trend reflects a positive growth trajectory. The company’s operating profit margin, excluding other income, improved notably to 24.42% in March 2025 from 20.33% in the previous year, signalling enhanced operational efficiency. Correspondingly, the profit after tax (PAT) margin stood at 10.0% in March 2025, up from 7.47% in March 2024, though slightly below the 10.48% recorded in March 2023.

Operating profit (PBDIT) excluding other income surged to ₹25.81 crores in March 2025, up from ₹19.55 crores in March 2024, underscoring improved cost management despite rising raw material and employee expenses. Interest costs increased to ₹6.19 crores in March 2025 from ₹4.30 crores a year earlier, reflecting higher borrowings, yet the company maintained a healthy gross profit (PBDT) of ₹20.08 crores.

Balance Sheet Strength and Asset Management

Sayaji’s balance sheet reveals a robust increase in shareholder’s funds, which rose from ₹45.08 crores in March 2023 to ₹62.40 crores in March 2025. This growth was supported by a significant rise in reserves, reaching ₹59.36 crores by March 2025. The company’s total liabilities expanded to ₹125.89 crores in March 2025 from ₹88.20 crores in March 2023, primarily due to increased long-term borrowings of ₹13.02 crores and short-term borrowings of ₹16.33 crores, reflecting strategic financing to support expansion.

Capital work in progress surged markedly to ₹39.81 crores in March 2025 from just ₹0.91 crores in March 2023, indicating ongoing investments in capacity or infrastructure. Net block assets remained stable around ₹72 crores, while total assets grew to ₹125.89 crores, highlighting asset base expansion aligned with business growth.

Despite a negative net current asset position of approximately ₹20 crores, the company managed its working capital efficiently, supported by steady cash flow from operations which increased to ₹24 crores in March 2025 from ₹17 crores in the prior year. However, cash and bank balances showed a decline to ₹0.24 crores in March 2025, down from ₹2.58 crores in March 2024, reflecting increased capital expenditure and financing activities.

Cash Flow and Earnings Per Share

Cash flow analysis reveals that Sayaji generated a positive cash flow after changes in working capital of ₹28 crores in March 2025, a significant improvement from ₹3 crores in March 2023. This was driven by higher profit before tax and adjustments, despite increased investing outflows of ₹30 crores, signalling active reinvestment into the business. Financing activities contributed a modest ₹3 crores in the latest year.

Earnings per share (EPS) demonstrated volatility, with a peak of ₹34.66 in March 2025, recovering from a dip to ₹23.54 in March 2024. This reflects the company’s ability to sustain profitability amid fluctuating market conditions and operational costs.

Summary and Investor Considerations

Overall, Sayaji (Indore) has exhibited a commendable historical performance characterised by steady revenue growth, improved operating margins, and a strengthening equity base. The company’s strategic investments and rising borrowings suggest a focus on expansion, which may enhance future earnings potential. However, investors should note the increased leverage and the negative net current asset position, which could impact liquidity in the short term.

With consistent profitability and a rising book value per share, Sayaji remains a noteworthy contender in its sector. Prospective investors are advised to weigh the company’s growth prospects against its financial commitments and market dynamics before making investment decisions.

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