Sportking India 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.

Sportking India Ltd trades at ₹215, in a confirmed uptrend and 26 weeks into that stage. That is +32.7% against its own 200-day average. It sits at 90% of a 52-week range of ₹82 to ₹229. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 38 straight weeks.

Today the stock is in a confirmed uptrend — week 26 of stage 2, confirmed. At ₹215 it trades +32.7% versus its 200-day average and sits at 90% of its 52-week range (₹82–₹229).

Against the market, two honest reads. Cumulative: over the last 9.7 years the stock moved +69,255% while the NIFTY 500 moved +232% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 38 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.

Story check

Sportking India Ltd's story is not scored yet against the markers our research file set on 17 May 2026. Where it sits in its own cycle: AT_PEAK_CYCLE. Still open: Bangladesh accounts for >60% of quarterly export revenue (~Rs 200 Cr/quarter); political transition + impending elections = timeline slippage risk.

Our read, 17 May 2026. A commodity spinner mid-transformation — EU-India FTA + Odisha capacity could double PAT run-rate by FY28, but management's 7 cross-call contradictions are the key risk.

From the numbers. PE cycle model shows BUBBLE_OVERVALUATION at 95th percentile — current PE 14.5x is 2.27x the historical median of 6.4x. Historical peak was 7.7x in Dec 2020. The model assigns AT_PEAK and PEAK_WARNING cycle signals with…

From the price. Price stage 2, week 26 — above its 200-day line, relative strength falling.

From the research. A commodity spinner mid-transformation — EU-India FTA + Odisha capacity could double PAT run-rate by FY28, but management's 7 cross-call contradictions are the key risk.

🚨 Where they disagree. PE cycle model shows BUBBLE_OVERVALUATION at 95th percentile — current PE 14.5x is 2.27x the historical median of 6.4x. Historical peak was 7.7x in Dec 2020. The model assigns AT_PEAK and PEAK_WARNING cycle signals with smoothed YoY earnings decline of -10.21%. This is the critical valuation tension: the market has priced in significant catalyst realization (Odisha, FTA, garment integration) before they show up in earnings. Multiple compression risk is elevated if execution delays emerge.

What is proven. A commodity spinner mid-transformation — EU-India FTA + Odisha capacity could double PAT run-rate by FY28, but management's 7 cross-call contradictions are the key risk.

What is not proven yet. Bangladesh accounts for >60% of quarterly export revenue (~Rs 200 Cr/quarter); political transition + impending elections = timeline slippage risk.

The test written in advance. Bangladesh Demand — 60%+ Export Revenue Concentration — Bangladesh Demand — 60%+ Export Revenue Concentration Bangladesh election outcome + monthly export tonnage to Bangladesh by the next result.

The test written in advance. Odisha Construction Delay — 15-Month Window — Odisha Construction Delay — 15-Month Window Q1 FY27 concall update on civil works progress and machinery delivery confirmation by the next result.

The test written in advance. US Tariff Escalation — 25% Current, Re-escalation Risk — US Tariff Escalation — 25% Current, Re-escalation Risk US-India tariff negotiation news + quarterly export realization per MT by the next result.

What the company does. FY26 closed at revenue Rs 2,496 Cr, PAT Rs 120 Cr (+10% YoY) with OPM recovering to 11.5% — the trough of the FTA-induced uncertainty cycle may be behind. Two structural catalysts are now activated: 40 MW solar power (March 2026, Rs 16 Cr annual savings) and the EU-India FTA (0% duty vs 8% for competing LDCs in 2-3 years) — both permanent margin lifts. The Rs 1,000 Cr Odisha greenfield (40% capacity addition, 150k spindles) commenced groundbreaking January 2026 with partial production targeted Dec 2026 — operating leverage inflection is 12-18 months away.

Lever 1 · Operating leverage — BUILDING. Duties cut from 9-12% to 0% for India while competing LDC nations face increase from 0% to 8% in 2-3 years — India becomes the preferred diversification source for global brands. What proves it keeps working: EU-India FTA — Structural Duty Inversion. It stops working if Bangladesh election outcome + monthly export tonnage to Bangladesh.

Lever 6 · Order-book wins — BUILDING. Rs 1,000 Cr greenfield adds 1.5 lakh spindles (40% over 3.79 lakh current base) — targeting Rs 1,200-1,300 Cr incremental revenue at better-than-current margins. What proves it keeps working: Odisha Greenfield Capacity Addition — 40% Volume Uplift. It stops working if Bangladesh election outcome + monthly export tonnage to Bangladesh.

Lever 2 · Value-added mix — BUILDING. Marvel Dyers + Sobhagya merged April 1, 2026 — adds Rs 200 Cr revenue at 15% EBITDA margin, transitioning from pure spinner to vertically integrated garment player. What proves it keeps working: Garment Merger — Forward Integration into Value Chain. It stops working if Bangladesh election outcome + monthly export tonnage to Bangladesh.

Lever 16 · Asset quality — BUILDING. 5-6 million spindles offline in India; far steeper rationalization in Turkey, Indonesia, Pakistan, Bangladesh — positions well-managed efficient mills to capture demand surge. What proves it keeps working: Industry Consolidation — Capacity Rationalization. It stops working if Bangladesh election outcome + monthly export tonnage to Bangladesh.

Sources: our stock research file (17 May 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

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

Sportking India Ltd reported ₹704 Cr of revenue in the Jun 26 quarter, +20.1% year on year. That is the 3rd straight quarter of year-on-year growth. Over 10 years it has compounded at 9.2% a year. The last full year, FY26, came in at ₹2,495 Cr. The last four reported quarters add to ₹2,614 Cr.

Why this happened. Groundbreaking commenced last two weeks of January 2026. All machinery advance payments made. Commissioning begins Q3 FY26 calendar (July-Sept 2026), partial production Dec 2026, full ramp to 96-98% utilization by FY27-end. Revenue potential: Rs 1,200-1,300 Cr incremental (vs current Rs 2,496 Cr — nearly doubling topline over FY27-28). Funding: Rs 650 Cr debt + Rs 350+ Cr internal accruals (Rs 100 Cr already spent). Odisha advantages: power at Rs 4/unit for 10 years (vs Rs 6.3/unit Punjab), capital/EGS subsidies, proximity to Kolkata/Bangladesh ports and downstream garment manufacturers. MoU signed for 300,000 spindles total — Phase 1 is 150,000.

FY26 revenue came in at ₹2,495 Cr (−1.1% on the year), capping 10 years at 9.2% compound. The latest quarter (Jun 26) printed ₹704 Cr, +20.1% year on year — the 3rd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +5.9% growth against the decade's 9.2% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +5.5% over the last 4 quarters against +2.8%/yr over the last 8 — stabilising; TTM profit +38.5% vs +38.1%/yr — stabilising.

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.

Sportking India Ltd's operating margin is 19.0% in the Jun 26 quarter, +7.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 9.0% to 28.0%. The current quarter sits inside that band.

Why this happened. The EU-India FTA was finalized in the last week of January 2026 per the Q4 FY26 concall. Implementation expected in 6-8 months. The structural insight: European buyers who had been sourcing from Bangladesh, Pakistan, and other LDC nations at 0% duty will face an 8% tariff increase as LDC status transitions, while India's duty goes to 0%. This creates a permanent inversion of ~8-12pp competitiveness advantage for Indian spinners. Current spread recovery evidence: yarn spreads recovering from Rs 112/MT (Q3) to Rs 130 (January 2026), with 60-70 day forward bookings at Rs 20 premium. Yarn prices up 20-25 rupees in 30s count over 45 days.

The latest quarter's operating margin is 19.0%, +7.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 9.0%–28.0%.

Why the margin moved: operating margin went +6.9 pp year on year while gross margin went +5.8 pp — the gain came mostly from the gross line: input costs and pricing.

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

Sportking India Ltd earned ₹76.0 Cr of net profit in the Jun 26 quarter, +123.5% year on year. Full-year FY26 profit was ₹120 Cr. The 10-year compound rate is 27.0%. That is 10.8% of the quarter's revenue. The same quarter a year earlier earned ₹34.0 Cr.

Jun 26 profit was ₹76.0 Cr, +123.5% year on year. On the full year, FY26 printed ₹120 Cr (+6.2%), and the 10-year compound rate is 27.0%.

Why profit moved: revenue contributed +20.1% and the margin +7.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +37.5% vs revenue +5.9%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to 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 155% of Sportking India Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹292 Cr of operating cash against ₹120 Cr of profit. After ₹74.0 Cr of capital spending, ₹218 Cr was left as free cash.

Why this happened. ~10 million spindles shut across India in last 2.5 years (~15% of Indian capacity). Small units (10,000-15,000 spindle mills) predominantly exiting. Older facilities (>25 years) unlikely to resume. Sportking at 96% capacity utilization (industry-leading) is positioned to capture demand when it normalizes. Chinese demand surge post-tariffs combined with brand reshoring toward India creating 'shared growth' dynamic. Peer rationalization also happening in Turkey/Indonesia/Pakistan/Bangladesh — geographic competitors weakening simultaneously.

FY26: operating cash of ₹292 Cr against reported profit of ₹120 Cr, leaving free cash of ₹218 Cr after ₹74.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 155% 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 155%: the cash cycle tightened 19 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).

Sportking India Ltd's cash conversion cycle runs 129 days in FY26, down from 148 days in FY21. Capital spending ran ₹250 Cr over the last 3 years. At FY26 sales of ₹2,495 Cr each day of that cycle holds about ₹6.8 Cr, so roughly ₹882 Cr sits inside the business at any moment.

FY26: debtors at 58 days, inventory at 84 days — roughly 2.8 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 129 days, tighter than FY21's 148.

The full loop: cash goes out to suppliers and production on day 0; stock waits 84 days to sell; customers pay about 58 days after that; and suppliers themselves are paid at 13 days — netting out to the 129-day cycle.

In money terms: at FY26 sales of ₹2,495 Cr, each day of the cycle holds about ₹6.8 Cr — so the 129-day loop keeps roughly ₹882 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹250 Cr over the last 3 fiscal years against ₹270 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹15.0 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.

Sportking India Ltd earns a ROCE of 13% in FY26. That is up from a trough of 8% in FY18. Return on invested capital clears the cost of that capital by +0.0 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 4.8% net margin on 1.43× asset turns.

FY26 ROCE is 13%, recovered from a FY18 trough of 8% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 4.8% net margin × 1.43× asset turns × 1.68× balance-sheet leverage ≈ 11.5% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 12.0% − 12.0% = a +0.0 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.

Sportking India Ltd carries total debt of ₹472 Cr against shareholder equity of ₹1,116 Cr as of Mar 26, a debt-to-equity of 0.42. On the annual view that ratio went from 0.70 in FY22 to 0.42 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹472 Cr against shareholder equity of ₹1,116 Cr — a debt-to-equity of 0.42. On the annual view, debt-to-equity went from 0.70 (FY22) to 0.42 (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.

No holder of Sportking India Ltd moved a full percentage point over the last two years — the register is quiet. Promoters moved +0.0 points over the same window, to 74.4%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +0.2 points over 8 quarters to 0.4%; Promoters: +0.0 points over 8 quarters to 74.4%; Domestic institutions: +0.0 points over 8 quarters to 0.0%.

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.

Sportking India Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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.

Sportking India Ltd trades at 16.9× P/E, at the pricey end of its own range (92nd percentile). Its long-run median P/E is 7.4×, measured across 9.7 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 16.9× is at the pricey end of its own range (92nd percentile), against a long-run median of 7.4× measured over 9.7 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 +5.8% against a +96.8% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +12.7%/yr price move, ~−0.7%/yr came from earnings growth and ~+13.4 pp from the multiple (expanding). 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 full against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 13 June 2026 price, Sportking India Ltd was paying for profit growth of about 10.8% a year. Profit itself has compounded 27.0% a year over the past 10 years. Today the market pays 16.9× P/E, the 92nd percentile of its own 10-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 13 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed 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).

Sportking India Ltd reads as mixed on its fundamental arc. Mixed — the growth curves are steadily positive, but ROCE at 14.4% is below the 15% bar this page requires to call it Consistent. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

65.7/100 — rank 1 of 13 in Textiles - Spinning · 100% evidence confidence

Sportking India Ltd scores 65.7 out of 100 against the 13 companies it is compared with in Textiles - Spinning, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 23.6 + 14.7 + 11 + 16.4 = 65.7. 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.

Said versus delivered

What Sportking India Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

Annual Revenue Outlook Raised · 3 August 2026. In the May 2026 call, management indicated a top-line expectation of INR2,700-2,800 crores for the coming financial year. In the Aug 2026 call, this was raised to approximately INR3,000 crores, an increase of roughly 7%-11% over the prior range, without a reconciliation of the changed target.

🚨 Acquisition Closing Timeline Extended · 3 August 2026. In May 2026, management expected to close the acquisitions within that quarter, whereas in Aug 2026 management said the transaction remained in progress and would require another quarter. Although the prior call also gave an outer calendar-year reference, the stated near-term closing expectation was missed and no specific reason for the delay was provided.

Odisha Utilization Target Reduced · 3 August 2026. The May 2026 call described a six-month ramp to 97%-98% utilization after commissioning the 150,000-spindle project. The Aug 2026 call retained a broadly similar five-to-six-month ramp period but lowered the expected utilization by the end of March to approximately 90%, reducing the near-term volume assumption without explaining the change.

🚨 Acquisition Closure Timeline Pushed Out · 19 May 2026. In the Nov 2025 call, management explicitly committed to formalizing the Marvel Dyers and Sobhagya acquisitions within FY26 (i.e., by March 2026), repeating this commitment multiple times during Q&A. In the May 2026 call, despite the deadline having already passed, management indicated closure could now slip as far as the end of calendar year 2026 - up to 9 months later than previously committed - with Sobhagya still subject to definitive agreements and the structure changed to a slump sale with land and building on lease.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions