Spunweb Nonwoven

Is Spunweb Nonwoven overvalued or undervalued?

As of September 17, 2025, Spunweb Nonwoven is considered very expensive and overvalued, with a PE ratio of 66.21 and significantly higher valuation metrics compared to peers like K P R Mill Ltd and Trident, despite recent short-term stock performance.

As of 17 September 2025, the valuation grade for Spunweb Nonwoven has moved from does not qualify to very expensive. This indicates a significant shift in the company's perceived value, leading to the conclusion that it is overvalued. Key ratios supporting this assessment include a PE ratio of 66.21, an EV to EBIT of 76.07, and a Price to Book Value of 14.94, all of which are substantially higher than industry norms.<BR><BR>In comparison to peers, Spunweb Nonwoven's valuation appears excessive, especially when juxtaposed with K P R Mill Ltd, which has a PE ratio of 45.93, and Trident, with a PE ratio of 35.01. These comparisons highlight that Spunweb is trading at a premium relative to its competitors. Additionally, while the stock has outperformed the Sensex in the short term, with a 1-week return of 12.76% compared to the Sensex's 1.43%, the overall valuation metrics suggest that investors should approach Spunweb Nonwoven with caution due to its overvaluation.

How has been the historical performance of Spunweb Nonwoven?

Spunweb Nonwoven experienced significant growth from March 2024 to March 2025, with net sales increasing to 226.35 Cr and profit after tax rising to 10.79 Cr. Despite higher raw material costs, operating profit improved, and total assets expanded to 181.79 Cr, indicating a strong financial position.

Answer:<BR>The historical performance of Spunweb Nonwoven shows significant growth in various financial metrics from March 2024 to March 2025.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2025, Spunweb Nonwoven reported net sales of 226.35 Cr, a substantial increase from 148.61 Cr in the previous year. Total operating income mirrored this growth, reaching 226.35 Cr compared to 148.61 Cr in March 2024. However, raw material costs also rose sharply to 174.57 Cr from 116.32 Cr, contributing to a total expenditure of 195.12 Cr, up from 133.60 Cr. Operating profit (PBDIT) increased to 32.02 Cr from 20.64 Cr, reflecting an improved operating profit margin of 13.8%, up from 10.1%. Profit before tax rose to 15.75 Cr from 7.45 Cr, leading to a profit after tax of 10.79 Cr, compared to 5.44 Cr the previous year. The earnings per share (EPS) also grew to 6.08 from 5.44. On the balance sheet, total assets increased to 181.79 Cr from 105.98 Cr, while total liabilities rose to 181.79 Cr from 105.98 Cr, indicating a significant expansion in the company's financial position. Cash flow from operating activities decreased to 2.00 Cr from 9.00 Cr, but cash flow from financing activities improved to 6.00 Cr from a negative 5.00 Cr, highlighting a shift in financing dynamics. Overall, Spunweb Nonwoven demonstrated robust growth in sales and profitability, alongside a notable increase in assets and liabilities.

Why is Spunweb Nonwoven Ltd falling/rising?

As of 04-Mar, Spunweb Nonwoven Ltd's stock price is at 103.05, down 0.25 or 0.24%. The stock has significantly underperformed the Sensex, with declines of 15.57% over the past week and 25.86% year-to-date, despite a recent increase in trading volume indicating potential investor interest.

As of 04-Mar, Spunweb Nonwoven Ltd's stock price is currently at 103.05, reflecting a decrease of 0.25, or 0.24%. This decline is evident in the stock's performance over various periods, where it has underperformed significantly compared to the benchmark Sensex. Over the past week, the stock has dropped by 15.57%, while the Sensex fell by only 3.93%. Similarly, in the last month, Spunweb Nonwoven's stock decreased by 16.36%, compared to a 5.03% decline in the Sensex. Year-to-date, the stock has fallen by 25.86%, while the Sensex has only decreased by 6.31%.<BR><BR>Despite today's performance indicating that the stock has outperformed its sector by 1.29%, it is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This suggests a bearish trend in the stock's price movement. However, there has been a notable increase in investor participation, with a delivery volume of 1.25 lacs on March 2, which is up by 471.43% against the 5-day average. This increase in trading volume could indicate a growing interest in the stock, but it has not yet translated into a positive price movement.<BR><BR>Overall, the combination of significant declines in stock performance relative to the benchmark, trading below moving averages, and the current price drop contributes to the stock's falling status.

Which are the latest news on Spunweb Nonwoven?