SP Apparels
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
S.P. Apparels Limited (SPAL) is poised for a recovery in FY27, driven by a robust order book and strategic pivots towards higher-value product segments, particularly luxury intimate wear. Management's confidence stems from improved order visibility and the anticipated benefits of the India-UK Free Trade Agreement (FTA), which are expected to enhance export competitiveness. The company's focus on vertical integration and operational efficiency is crucial in mitigating risks associated with raw material price volatility and geopolitical uncertainties. Vista's financial outlook reflects a stable margin environment, with revenue growth moderating but supported by disciplined capital allocation and a commitment to scaling the Young Brand Apparel division. While the textiles industry is expanding, SPAL must navigate potential headwinds such as rising raw material costs and logistics challenges. Over the next 12-24 months, key opportunities include leveraging new trade agreements and enhancing production capabilities, while watchpoints include the impact of US trade policies and inflationary pressures on margins
Why We Like This Stock
- Management's confident outlook is supported by a strong order book and strategic focus on higher-value product segments
- The anticipated benefits from the India-UK FTA are expected to enhance SPAL's export competitiveness
- Operational efficiency and vertical integration strategies are being prioritized to mitigate risks and optimize margins
Things To Watch Out For
- Rising raw material costs and logistics-related challenges could pressure profit margins
- Dependence on favorable US trade policies poses a risk to revenue stability
- Inflationary pressures may impact overall operational costs and profitability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,087 | 1,395 | 1,579 | 1,634 | 1,768 |
| Profit Before Tax (Cr.) | 108 | 122 | 141 | 152 | 164 |
| PBT Margin | 9.9% | 8.8% | 8.9% | 9.3% | 9.3% |
| Net Profit (Cr.) | 80 | 87 | 100 | 108 | 117 |
| Earnings Per Share | 31.8 | 34.7 | 39.8 | 43.1 | 46.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Moneycontrol | ▲ Overweight | — | 26-Aug-2026 |
Company Overview
Show Company Profile
S.P. Apparels Limited, together with its subsidiaries, manufactures and exports knitted garments for infant wear, children's apparel, and intimate wear in India and internationally. The company offers yarns, fabrics, and cotton waste products under the Angel & Rocket brand. The company also provides dyeing, embroidery, and printing services. In addition, it engages in the manufacture, distribution, marketing, and retail sale of menswear garments under the Crocodile brand name. S.P. Apparels Limited was founded in 1988 and is headquartered in Tirupur, India.