Sarla Performance Fibers Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Sarla Performance Fibers Ltd trades at ₹100, in a confirmed uptrend and 15 weeks into that stage. That is +4.8% against its own 200-day average. It sits at 89% of a 52-week range of ₹73 to ₹104. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks.

Today the stock is in a confirmed uptrend — week 15 of stage 2, confirmed. At ₹100 it trades +4.8% versus its 200-day average and sits at 89% of its 52-week range (₹73–₹104).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +57% while the NIFTY 500 moved +267% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 2 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Sarla Performance Fibers Ltd trades at 10.1× P/E, near the bottom of its own range — cheaper only 22% of the time. Its long-run median P/E is 12.6×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 10.1× is near the bottom of its own range — cheaper only 22% of the time, against a long-run median of 12.6× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved −121.0% against a +2.0% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +17.9%/yr price move, ~+17.9%/yr came from earnings growth and ~+0.0 pp from the multiple (roughly flat); over 10y, of the +4.9%/yr price move, ~+6.3%/yr came from earnings growth and ~−1.4 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

Stage: Deteriorating Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Sarla Performance Fibers Ltd reads as deteriorating on its fundamental arc. Deteriorating — revenue, profit and EPS growth are shrinking (revenue growth −1.4% latest against +28.1% at its 12-quarter best), ROCE holding at 10.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

🚨 Why it matters: falling curves mean every cheap-looking ratio below needs a discount for direction.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

46.1/100 — rank 4 of 6 in Textiles - Processing/Texturising · 81% evidence confidence

Sarla Performance Fibers Ltd scores 46.1 out of 100 against the 6 companies it is compared with in Textiles - Processing/Texturising, ranking 4. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 11.8 + 12.1 + 12.6 + 9.6 = 46.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Sarla Performance Fibers Ltd reported ₹113 Cr of revenue in the Jun 26 quarter, +10.8% year on year. That is the 2nd straight quarter of year-on-year growth. Over 10 years it has compounded at 3.0% a year. The last full year, FY26, came in at ₹401 Cr. The last four reported quarters add to ₹412 Cr.

FY26 revenue came in at ₹401 Cr (−5.6% on the year), capping 10 years at 3.0% compound. The latest quarter (Jun 26) printed ₹113 Cr, +10.8% year on year — the 2nd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged −1.2% growth against the decade's 3.0% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −1.4% over the last 4 quarters against +0.4%/yr over the last 8 — stabilising; TTM profit −98.5% vs −84.8%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Sarla Performance Fibers Ltd's operating margin is 24.0% in the Jun 26 quarter, +13.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0% to 22.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 24.0%, +13.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0%–22.0%.

Why the margin moved: operating margin went +13.7 pp year on year while gross margin went −1.3 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Sarla Performance Fibers Ltd earned ₹37.0 Cr of net profit in the Jun 26 quarter, +68.2% year on year. The full FY26 year was a loss of ₹13.0 Cr. That is 32.7% of the quarter's revenue. The same quarter a year earlier earned ₹22.0 Cr. 1 of the last 12 reported quarters were loss-making.

Jun 26 profit was ₹37.0 Cr, +68.2% year on year. On the full year, FY26 printed ₹−13.0 Cr (−121.0%).

Why profit moved: revenue contributed +10.8% and the margin +13.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit −139.4% vs revenue −1.2%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 168% of Sarla Performance Fibers Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹74.0 Cr of operating cash against ₹−13.0 Cr of profit. After ₹8.0 Cr of capital spending, ₹66.0 Cr was left as free cash.

FY26: operating cash of ₹74.0 Cr against reported profit of ₹−13.0 Cr, leaving free cash of ₹66.0 Cr after ₹8.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 168% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 168%: the cash cycle tightened 88 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Sarla Performance Fibers Ltd's cash conversion cycle runs 188 days in FY26, down from 276 days in FY21. Capital spending ran ₹41.0 Cr over the last 3 years. At FY26 sales of ₹401 Cr each day of that cycle holds about ₹1.1 Cr, so roughly ₹207 Cr sits inside the business at any moment.

FY26: debtors at 104 days, inventory at 156 days — roughly 5.1 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 188 days, tighter than FY21's 276.

The full loop: cash goes out to suppliers and production on day 0; stock waits 156 days to sell; customers pay about 104 days after that; and suppliers themselves are paid at 73 days — netting out to the 188-day cycle.

In money terms: at FY26 sales of ₹401 Cr, each day of the cycle holds about ₹1.1 Cr — so the 188-day loop keeps roughly ₹207 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹41.0 Cr over the last 3 fiscal years against ₹78.0 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹4.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

Sarla Performance Fibers Ltd earns a ROCE of 10% in FY26. That is up from a trough of 7% in FY23. Return on invested capital clears the cost of that capital by −6.1 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is −3.2% net margin on 0.48× asset turns.

FY26 ROCE is 10%, recovered from a FY23 trough of 7% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): −3.2% net margin × 0.48× asset turns × 1.91× balance-sheet leverage ≈ −2.9% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 5.9% − 12.0% = a −6.1 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

Sarla Performance Fibers Ltd carries total debt of ₹205 Cr against shareholder equity of ₹515 Cr as of Mar 26, a debt-to-equity of 0.40. On the annual view that ratio went from 0.37 in FY22 to 0.40 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹205 Cr against shareholder equity of ₹515 Cr — a debt-to-equity of 0.40. On the annual view, debt-to-equity went from 0.37 (FY22) to 0.40 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters added 3.3 points of Sarla Performance Fibers Ltd over 8 quarters, the biggest move on the register. That takes promoters to 60.0% of the company. Foreign institutions moved −0.1 points over the same window, to 0.6%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: +3.3 points over 8 quarters to 60.0%; Foreign institutions: −0.1 points over 8 quarters to 0.6%; Domestic institutions: +0.0 points over 8 quarters to 0.7%.

Why the register moved: promoters drove it (+3.3 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Sarla Performance Fibers Ltd: the Z-score reads 2.93. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits in the grey band between the two. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 2.93 sits in the grey band — neither clearly safe nor clearly distressed.

The safety line in one sentence: the Z-score reads 2.93.

Frequently asked questions