S.P. Apparels Ltd. (SPAL) AI Stock Analysis

S.P. Apparels Ltd.

(NSE:SPAL)

Select Model

Rating:56.1Neutral

Price Target:INR 838.00▲(3.08% Upside)

Action:reiterated

Date:10/02/26

The overall score reflects a fundamentally profitable business with a reasonably strong, moderately levered balance sheet, offset by recent margin compression, a sharp reported revenue decline, and volatile cash flows. Weak near-term technical momentum and a modestly demanding valuation with little dividend support further cap the upside, resulting in a mid-range score. Upside potential depends on stabilizing profitability and achieving more consistent cash generation.

Positive Factors

Balance-sheet resilienceManageable leverage and a growing equity base provide financial resilience while the company navigates weaker operating conditions. Consistent double-digit returns on equity indicate that capital has continued to generate reasonable returns, supporting funding flexibility over the next several quarters.

Negative Factors

Severe revenue contractionThe sharp FY2026 revenue decline materially weakens earnings visibility and suggests that demand or order activity has been highly volatile. Sustained weakness would reduce operating leverage, limit reinvestment capacity, and make the company’s near-term profit base less dependable.

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

Market Cap: INR 20.45B
Dividend Yield: 0.37%
Average Volume (3M): 4,125
Price to Earnings (P/E): 19.4
Beta (1Y): 1.04
Revenue Growth: 1.48%
EPS Growth: 7.56%
Country: India
Employees: 13,534
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

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 marketin...

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 supply...

S.P. Apparels Ltd. Financial Statement Overview

Summary

Revenue has grown over several years and profitability and return on equity are generally solid, but the recent sharp drop in reported revenue and gross margin plus uneven cash generation meaningfully increase risk.

Income Statement

58Neutral

Balance Sheet

72Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	15.76B	15.79B	13.95B	10.31B	10.27B	8.22B
Gross Profit	3.43B	4.54B	8.16B	5.04B	4.60B	3.95B
EBITDA	2.39B	2.30B	2.00B	1.69B	1.59B	1.60B
Net Income	1.05B	1.01B	951.02M	896.25M	825.12M	846.93M
Balance Sheet
Total Assets	0	15.91B	14.56B	11.42B	10.97B	10.62B
Cash, Cash Equivalents and Short-Term Investments	726.33M	726.33M	415.15M	1.29B	1.33B	621.27M
Total Debt	0	4.19B	3.81B	2.03B	2.45B	2.31B
Total Liabilities	-9.40B	6.51B	6.06B	3.84B	4.30B	4.31B
Stockholders Equity	9.40B	9.46B	8.56B	7.64B	6.74B	6.38B
Cash Flow
Free Cash Flow	591.12M	690.42M	-378.25M	242.25M	1.64B	-64.48M
Operating Cash Flow	1.26B	1.77B	444.18M	792.04M	2.16B	268.93M
Investing Cash Flow	-1.16B	-1.92B	-1.77B	62.13M	-1.60B	-291.86M
Financing Cash Flow	-9.17M	338.94M	824.99M	-667.83M	-478.23M	236.28M

S.P. Apparels Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price813.00

Price Trends

50DMA952.64Negative

100DMA980.44Negative

200DMA857.47Negative

Market Momentum

MACD-38.35Positive

RSI28.70Positive

STOCH17.24Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPAL, the sentiment is Negative. The current price of 813.00 is below the 20-day moving average (MA) of 898.04, below the 50-day MA of 952.64, and below the 200-day MA of 857.47, indicating a bearish trend. The MACD of -38.35 indicates Positive momentum. The RSI at 28.70 is Positive, neither overbought nor oversold. The STOCH value of 17.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SPAL.

S.P. Apparels Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SPAL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PAGEIND	67Neutral	INR 383.25B	50.91	―	1.75%	7.57%	-1.16%
IN:RUPA	61Neutral	INR 9.52B	12.60	―	2.50%	5.33%	-4.01%
IN:SPAL	56Neutral	INR 20.44B	19.42	―	0.37%	1.48%	7.56%
IN:DOLLAR	56Neutral	INR 13.55B	12.08	―	1.26%	6.24%	15.54%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:JINDWORLD	54Neutral	INR 35.72B	42.36	―	―	-1.72%	12.66%
IN:LUXIND	39Underperform	INR 33.85B	32.98	―	0.18%	10.61%	-33.91%

* General Sector Average

Performance Comparison

IN:SPAL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SPAL	S.P. Apparels Ltd.	813.00	104.71	14.78%
IN:DOLLAR	Dollar Industries Ltd.	238.90	-111.08	-31.74%
IN:JINDWORLD	Jindal Worldwide Limited	35.63	-0.89	-2.44%
IN:LUXIND	Lux Industries Ltd.	1125.65	-141.26	-11.15%
IN:PAGEIND	Page Industries Limited	34360.30	-5723.96	-14.28%
IN:RUPA	Rupa & Co. Ltd.	119.75	-69.27	-36.65%

S.P. Apparels Ltd. Corporate Events

S.P. Apparels Sets Record Date for Equity Share Sub-Division

Oct 6, 2026

S.P. Apparels Ltd. announced that its board of directors has fixed December 10, 2026 as the record date to determine shareholder eligibility for a sub-division of its equity shares. This follows shareholder approval at the company’s 21st Annual...

S.P. Apparels Discloses Share Sale by Managing Director Under SEBI Rules

Aug 29, 2026

S.P. Apparels Ltd. has disclosed that Managing Director P. Sundararajan sold 500,000 equity shares of the company in a market transaction. The sale has been reported to the Bombay Stock Exchange and the National Stock Exchange of India under Regulati...

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: Oct 01, 2026

S.P. Apparels Ltd. AI Stock Analysis