Sreeleathers 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.

Sreeleathers Ltd trades at ₹217, building a base and 3 weeks into that stage. That is +3.1% against its own 200-day average. It sits at 74% of a 52-week range of ₹184 to ₹228. On relative strength it has no relative-strength read yet.

Today the stock is building a base — week 3 of stage 1, confirmed. At ₹217 it trades +3.1% versus its 200-day average and sits at 74% of its 52-week range (₹184–₹228).

Against the market, two honest reads. Cumulative: over the last 2 months the stock moved +18% while the NIFTY 500 moved +5% — ahead of the index over the full window. Recent form: no trailing-13-week read yet — 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.

Sreeleathers Ltd trades at 17.4× P/E, near the bottom of its own range — cheaper only 16% of the time. Its long-run median P/E is 24.4×, measured across 10.1 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 17.4× is near the bottom of its own range — cheaper only 16% of the time, against a long-run median of 24.4× measured over 10.1 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

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

Stage: Improving 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).

Sreeleathers Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 8 quarters ago at −29.0% and has held its recovery at +82.8% (single-quarter readings), ROCE holding at 8.0%. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

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

55.5/100 — rank 2 of 7 in Footwear · 68% evidence confidence

Sreeleathers Ltd scores 55.5 out of 100 against the 7 companies it is compared with in Footwear, ranking 2. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 22.9 + 10.1 + 12 + 10.5 = 55.5. 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.

Sreeleathers Ltd reported ₹62.7 Cr of revenue in the Mar 26 quarter, +17.9% year on year. That is the 5th straight quarter of year-on-year growth. Over 10 years it has compounded at 12.0% a year. The last full year, FY26, came in at ₹248 Cr. The last four reported quarters add to ₹248 Cr.

FY26 revenue came in at ₹248 Cr (+14.3% on the year), capping 10 years at 12.0% compound. The latest quarter (Mar 26) printed ₹62.7 Cr, +17.9% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +12.5% growth against the decade's 12.0% — the current year is running in line with its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +13.0% over the last 4 quarters against +6.8%/yr over the last 8 — accelerating; TTM profit +27.3% vs +3.5%/yr — accelerating.

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.

Sreeleathers Ltd's operating margin is 15.9% in the Mar 26 quarter, +3.3 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 14.0% to 23.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 15.9%, +3.3 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 14.0%–23.0%.

Why the margin moved: operating margin went +3.3 pp year on year while gross margin went +3.1 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.

Sreeleathers Ltd earned ₹9.7 Cr of net profit in the Mar 26 quarter, +82.8% year on year. It is the 3rd consecutive quarter of growth. Full-year FY26 profit was ₹29.0 Cr. The 10-year compound rate is 10.2%. That is 15.4% of the quarter's revenue. The same quarter a year earlier earned ₹5.3 Cr.

Mar 26 profit was ₹9.7 Cr, +82.8% year on year — the 3rd consecutive quarter of growth. On the full year, FY26 printed ₹29.0 Cr (+26.1%), and the 10-year compound rate is 10.2%.

Why profit moved: revenue contributed +17.9% and the margin +3.3 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +25.2% vs revenue +12.5%. 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 111% of Sreeleathers Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹31.0 Cr of operating cash against ₹29.0 Cr of profit. After ₹0.0 Cr of capital spending, ₹31.0 Cr was left as free cash.

FY26: operating cash of ₹31.0 Cr against reported profit of ₹29.0 Cr, leaving free cash of ₹31.0 Cr after ₹0.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 111% 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 111%: the cash cycle tightened 41 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).

Sreeleathers Ltd's cash conversion cycle runs −6 days in FY26, down from 35 days in FY21. Capital spending ran ₹3.0 Cr over the last 3 years. At FY26 sales of ₹248 Cr each day of that cycle holds about ₹0.7 Cr, so roughly ₹−4.0 Cr sits inside the business at any moment.

FY26: debtors at 1 days, inventory at 15 days — roughly 0.5 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −6 days, tighter than FY21's 35.

The full loop: cash goes out to suppliers and production on day 0; stock waits 15 days to sell; customers pay about 1 days after that; and suppliers themselves are paid at 22 days — netting out to the −6-day cycle.

In money terms: at FY26 sales of ₹248 Cr, each day of the cycle holds about ₹0.7 Cr — so the −6-day loop keeps roughly ₹−4.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹3.0 Cr over the last 3 fiscal years against ₹3.0 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹0.0 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.

Sreeleathers Ltd earns a ROCE of 8% in FY26. That is up from a trough of 5% in FY21. Return on invested capital clears the cost of that capital by −6.0 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 11.7% net margin on 0.47× asset turns.

FY26 ROCE is 8%, recovered from a FY21 trough of 5% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 11.7% net margin × 0.47× asset turns × 1.06× balance-sheet leverage ≈ 5.8% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 6.0% − 12.0% = a −6.0 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; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Sreeleathers Ltd carries ₹2.0 Cr of borrowings against ₹498 Cr of equity in FY26, a debt-to-equity of 0.00. Over 5 years borrowings went from ₹3.0 Cr to ₹2.0 Cr. Capital spending ran ₹3.0 Cr across the last 3 of those years.

FY26: borrowings of ₹2.0 Cr against equity of ₹498 Cr — a debt-to-equity of 0.00. Over 5 years borrowings went from ₹3.0 Cr to ₹2.0 Cr while capital spending ran ₹3.0 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

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 Sreeleathers Ltd moved a full percentage point over the last two years — the register is quiet. Foreign institutions moved +0.0 points over the same window, to 6.9%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: +0.0 points over 8 quarters to 75.0%; Foreign institutions: +0.0 points over 8 quarters to 6.9%.

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.

Sreeleathers 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.

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