Sreeleathers Ltd. (SREEL) AI Stock Analysis

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Sreeleathers Ltd.

(NSE:SREEL)

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Rating:77Outperform

Price Target:INR 313.00▲(13.41% Upside)

Action:reiterated

Date:09/12/26

The score is driven primarily by strong financial strength (very conservative balance sheet and solid cash conversion) alongside a clear upward price trend. Offsetting factors include overbought technical readings that raise near-term risk and a valuation that looks somewhat expensive with a low dividend yield.

Positive Factors

Revenue ScalingThe substantial multi-year revenue increase shows that Sreeleathers has expanded its operating scale and customer reach. Continued brand activity across affordable footwear and leather goods can support a larger earnings base, even as the pace of growth moderates.

Negative Factors

Margin CompressionRecent margin compression suggests that revenue growth has not translated into the same level of profitability achieved in earlier periods. If this pressure persists, it could limit earnings expansion, reduce reinvestment capacity, and weaken the benefit of continued sales growth.

Sreeleathers Ltd. (SREEL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 6.48B
Dividend Yield: 0.73%
Average Volume (3M): 4,164
Price to Earnings (P/E): 19.9
Beta (1Y): 0.37
Revenue Growth: 16.69%
EPS Growth: 56.93%
Country: India
Employees: 87
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

Sreeleathers Ltd. Business Overview & Revenue Model

Company Description

Sreeleathers Limited engages in the trading of footwear and accessories in India. The company offers formal, nagra, and casual, as well as school shoes; slipper and chappals; sandals; and accessories, such as trolley, belts, wallets, bags, leather ga...

Sreeleathers Ltd. Financial Statement Overview

Summary

Strong multi-year revenue scaling and healthy historical profitability, supported by exceptionally low leverage and solid solvency. Cash generation quality is good (operating cash flow consistently above net income; free cash flow broadly tracks earnings), though growth has recently normalized and margins have shown compression versus earlier years.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.58B	2.48B	2.20B	2.18B	2.00B	1.22B
Gross Profit	561.92M	477.37M	420.34M	538.50M	501.61M	328.75M
EBITDA	443.50M	398.62M	335.40M	378.80M	363.18M	241.27M
Net Income	327.96M	287.43M	225.71M	268.45M	256.16M	165.33M
Balance Sheet
Total Assets	0	5.28B	4.86B	4.39B	3.94B	3.55B
Cash, Cash Equivalents and Short-Term Investments	101.21M	101.21M	62.63M	89.92M	63.53M	54.20M
Total Debt	0	22.14M	25.61M	29.34M	30.05M	33.33M
Total Liabilities	-4.98B	307.33M	238.66M	217.25M	219.09M	177.50M
Stockholders Equity	4.98B	4.98B	4.62B	4.18B	3.72B	3.37B
Cash Flow
Free Cash Flow	183.53M	317.85M	248.34M	288.80M	280.26M	164.17M
Operating Cash Flow	184.11M	318.76M	274.94M	295.11M	290.80M	165.50M
Investing Cash Flow	-155.31M	-274.74M	-271.82M	-295.99M	-248.88M	-155.20M
Financing Cash Flow	-3.03M	-25.44M	-5.26M	-7.89M	-6.34M	-8.41M

Sreeleathers Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price276.00

Price Trends

50DMA279.98Negative

100DMA251.65Positive

200DMA222.66Positive

Market Momentum

MACD-2.70Negative

RSI53.97Neutral

STOCH74.62Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SREEL, the sentiment is Positive. The current price of 276.00 is above the 20-day moving average (MA) of 266.57, below the 50-day MA of 279.98, and above the 200-day MA of 222.66, indicating a neutral trend. The MACD of -2.70 indicates Negative momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 74.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SREEL.

Sreeleathers Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SREEL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SREEL	77Outperform	INR 6.39B	19.90	―	0.73%	16.69%	56.93%
IN:METROBRAND	66Neutral	INR 228.49B	54.96	―	0.72%	15.60%	16.47%
IN:REDTAPE	62Neutral	INR 59.90B	23.70	―	1.84%	13.72%	40.48%
IN:BATAINDIA	60Neutral	INR 82.48B	55.44	―	5.24%	4.72%	-11.79%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:LIBERTSHOE	39Underperform	INR 3.46B	40.23	―	―	8.42%	-39.81%
IN:KHADIM	38Underperform	INR 2.25B	60.00	―	―	-24.25%	-18.51%

* General Sector Average

Performance Comparison

IN:SREEL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SREEL	Sreeleathers Ltd.	276.00	55.82	25.35%
IN:BATAINDIA	Bata India Ltd	648.45	-331.44	-33.82%
IN:KHADIM	Khadim India Limited	122.15	-102.10	-45.53%
IN:LIBERTSHOE	Liberty Shoes Limited	203.95	-104.05	-33.78%
IN:METROBRAND	Metro Brands Ltd.	835.75	-255.63	-23.42%
IN:REDTAPE	Redtape Limited	108.55	-26.85	-19.83%

Sreeleathers Ltd. Corporate Events

Sreeleathers Files SEBI Dematerialisation Compliance Certificate for Q2 FY2026

Oct 9, 2026

Sreeleathers Limited, a listed footwear and leather goods company with a presence on BSE and NSE, continues to operate within India’s regulated capital markets framework. Its reliance on specialist registrar and share transfer agents helps ensure pro...

Sreeleathers Files AGM Voting Results and Scrutinizer’s Report

Sep 29, 2026

Sreeleathers Limited operates in the footwear and leather goods industry, marketing a range of leather shoes, accessories and related products to retail consumers in India. Its shares are listed on BSE under scrip code 535601 and on the National Stoc...

Sreeleathers Publishes AGM Notice, Confirms Virtual Meeting for Shareholders

Sep 4, 2026

Sreeleathers Ltd. has notified the stock exchanges that it has published newspaper advertisements in Financial Express and Aarthik Lipi concerning its upcoming 35th Annual General Meeting. The notices cover details on remote e-voting, record date and...

Sreeleathers Publishes AGM Notice, Sets September 28 Virtual Meeting

Aug 27, 2026

Sreeleathers Ltd. notified stock exchanges that it has published newspaper advertisements regarding its upcoming 35th Annual General Meeting. The notices appeared in English daily The Echo of India and Bengali daily Arthik Lipi, ensuring communicatio...

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: Sep 12, 2026

Sreeleathers Ltd. AI Stock Analysis