Siyaram Silk Mills Ltd is a small cap textile company that recorded a market cap of ₹2,664.80 Cr during Friday’s closing. Following the company’s outstanding Q4 earnings, brokerage firm ICICI Direct predicts a new 52-week high on the stock.
The company’s net sales in Q4FY23 were ₹695 Cr, up 10.6% year on year from ₹628 Cr in Q4FY22. Its EBITDA was ₹121 Cr in the March 2023 quarter, up 3.1% year on year from ₹117 Cr in the March 2022 quarter. Siyaram Silk Mills reported a net profit of ₹88 Cr in the March 2023 quarter, up 14.3% year on year from ₹77 Cr in the same period last year. And its net debt for FY23 was ₹208 crores, with a net debt-to-equity ratio of 0.02x.
“Siyaram Silk Mills reported a steady operational performance amid a challenging business scenario. SSML reported an improved revenue performance in Q4FY23 with consolidated revenues increasing 11% YoY to ₹695 crore (three year CAGR of 14% on a favourable base due to impact of Covid in March 2020). Gross margin declined 70 bps YoY to 39.1% (Q3FY23: 42.3%) probably due to increased cost of raw material. Higher opex led to EBITDA margin declining by 130 bps YoY to 17.5%. EBITDA grew 3% YoY to ₹121 crore. Consequently, the company reported PAT growth of 14% YoY to ₹88.1 crore vs. PAT of ₹77.3 crore in Q4FY22 (favourable base due to exceptional expense to the tune of ₹5.3 crore in Q4FY22),” said ICICI Direct in a report.
Buy Siyaram Silk Mills?
The research analysts of ICICI Direct said “Over the last six years, the stock price has appreciated at a CAGR of 23%. We maintain BUY recommendation on the stock. We value SSML at ₹710 i.e. ~10x FY25E EPS.”
Siyaram Silk Mills share price
On Friday, the shares of Siyaram Silk Mills closed on the NSE at ₹568.25 apiece down by 1.11% from the previous close of ₹574.65. The stock touched a 52-week-high of ₹592.00 on (05-Dec-2022) and a 52-week-low of ₹399.30 on (29-Mar-2023). As per the shareholding pattern of Siyaram Silk Mills for January to March 2023 quarter, ace investor Vijay Kishanlal Kedia held 5,05,000 shares or 1.08% stake in the company.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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