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S.P. Apparels Ltd. (IN:SPAL)
:SPAL
India Market
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S.P. Apparels Ltd. (SPAL) AI Stock Analysis

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IN:SPAL

S.P. Apparels Ltd.

(SPAL)

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Neutral 65 (OpenAI - Gpt-5.6Sol)
Rating:65Neutral
Price Target:
₹1,024.00
▲(2.11% Upside)
Action:Reiterated
Date:07/01/26
The score is anchored by mixed fundamentals: a manageable balance sheet and acceptable profitability are outweighed by the sharp FY2026 revenue drop and major gross-margin compression, with cash flow improving but still uneven. Technicals are a key positive, with the stock trading well above all major moving averages, while valuation is a mild headwind due to a higher P/E and low dividend yield.
Positive Factors
Manageable Leverage
Moderate leverage and a growing equity base provide financial resilience. Consistent double-digit returns on equity indicate the company has continued generating acceptable shareholder returns despite recent operating weakness.
Negative Factors
Sharp Revenue Contraction
The abrupt revenue decline materially weakens earnings visibility and suggests significant volatility in order volumes or delivery timing. Continued weakness would reduce operating leverage and make recovery in profitability more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable Leverage
Moderate leverage and a growing equity base provide financial resilience. Consistent double-digit returns on equity indicate the company has continued generating acceptable shareholder returns despite recent operating weakness.
Read all positive factors

S.P. Apparels Ltd. (SPAL) vs. iShares MSCI India ETF (INDA)

S.P. Apparels Ltd. Business Overview & Revenue Model

Company Description
S.P. Apparels Limited, an Indian enterprise, specializes in producing and selling knitted attire primarily for infants and children within the domestic market. The company further diversifies its portfolio by manufacturing, distributing, and marke...
How the Company Makes Money
SPAL makes money primarily by selling manufactured apparel (garments) to its customers, earning revenue based on agreed pricing for produced and delivered orders. Key revenue streams typically include (1) revenue from garment manufacturing and sup...

S.P. Apparels Ltd. Financial Statement Overview

Summary
Balance sheet is relatively resilient (moderate leverage with ~0.44 debt-to-equity and steady ~10–13% ROE), but operating performance weakened materially with a sharp FY2026 revenue decline (-67.1%) and significant margin compression (gross margin down from ~58.5% to ~28.8%). Cash flow turned positive in FY2026 (positive FCF ~₹690M) but remains inconsistent across periods and cash conversion is only modest (FCF ~39% of net income).
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
53
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue15.76B15.79B13.95B10.31B10.27B8.22B
Gross Profit3.43B4.54B8.16B5.04B4.60B3.95B
EBITDA2.39B2.30B2.00B1.69B1.59B1.60B
Net Income1.05B1.01B951.02M896.25M825.12M846.93M
Balance Sheet
Total Assets0.0015.91B14.56B11.42B10.97B10.62B
Cash, Cash Equivalents and Short-Term Investments726.33M726.33M415.15M1.29B1.33B621.27M
Total Debt0.004.19B3.81B2.03B2.45B2.31B
Total Liabilities-9.40B6.51B6.06B3.84B4.30B4.31B
Stockholders Equity9.40B9.46B8.56B7.64B6.74B6.38B
Cash Flow
Free Cash Flow591.12M690.42M-378.25M242.25M1.64B-64.48M
Operating Cash Flow1.26B1.77B444.18M792.04M2.16B268.93M
Investing Cash Flow-1.16B-1.92B-1.77B62.13M-1.60B-291.86M
Financing Cash Flow-9.17M338.94M824.99M-667.83M-478.23M236.28M

S.P. Apparels Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1002.85
Price Trends
50DMA
1029.04
Positive
100DMA
928.32
Positive
200DMA
821.63
Positive
Market Momentum
MACD
17.05
Negative
RSI
59.28
Neutral
STOCH
85.26
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPAL, the sentiment is Positive. The current price of 1002.85 is above the 20-day moving average (MA) of 986.74, below the 50-day MA of 1029.04, and above the 200-day MA of 821.63, indicating a bullish trend. The MACD of 17.05 indicates Negative momentum. The RSI at 59.28 is Neutral, neither overbought nor oversold. The STOCH value of 85.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SPAL.

S.P. Apparels Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
₹14.99B13.331.14%6.24%15.54%
65
Neutral
₹26.93B25.330.28%1.48%7.56%
62
Neutral
₹404.66B53.571.68%7.57%-1.16%
56
Neutral
₹11.51B15.322.12%5.33%-4.01%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₹57.16B68.790.06%-1.72%12.66%
51
Neutral
₹35.31B34.410.18%10.61%-33.91%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SPAL
S.P. Apparels Ltd.
1,064.40
333.87
45.70%
IN:DOLLAR
Dollar Industries Ltd.
262.05
-93.07
-26.21%
IN:JINDWORLD
Jindal Worldwide Limited
58.54
22.35
61.76%
IN:LUXIND
Lux Industries Ltd.
1,157.20
-129.04
-10.03%
IN:PAGEIND
Page Industries Limited
35,845.05
-7,750.62
-17.78%
IN:RUPA
Rupa & Co. Ltd.
143.00
-65.10
-31.28%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2026