Sumit Woods Ltd. (SUMIT) AI Stock Analysis

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Sumit Woods Ltd.

(NSE:SUMIT)

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Rating:40Underperform

Price Target:INR 45.00▼(-4.36% Downside)

Action:downgraded

Date:10/22/26

Sumit Woods scores low primarily because of fundamental weakness: a 37% revenue drop in FY2026, persistently negative operating cash flow (₹-469M) despite reported profits, and a return on equity of only 3.2%. A stronger equity base and reduced leverage (D/E down to 0.63x) provide some support, but a renewed jump in debt tempers that improvement. Technicals reinforce the caution — the stock trades below all key moving averages with negative MACD and subdued RSI. Valuation adds further pressure, with a near-30x P/E unsupported by current earnings quality and only a token 0.46% dividend yield.

Positive Factors

Improved profitabilityThe move from large earlier losses to consistent profitability indicates that the company has improved its operating execution and project economics. Sustained profits provide a stronger base for reinvestment, capital preservation, and resilience across the next several reporting periods.

Negative Factors

Weak cash conversionThe sharp 2026 cash outflow shows that reported profits are not consistently converting into cash. Volatile operating cash flow can increase reliance on financing or customer collections, constrain project investment, and make liquidity management more difficult over the next several quarters.

Sumit Woods Ltd. (SUMIT) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.13B
Dividend Yield: 0.43%
Average Volume (3M): 27.05K
Price to Earnings (P/E): 29.0
Beta (1Y): 1.43
Revenue Growth: 3.23%
EPS Growth: -36.54%
Country: India
Employees: 30
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Sumit Woods Ltd. Business Overview & Revenue Model

Company Description

Sumit Woods Limited is an Indian property developer that undertakes real estate projects and provides related services across the country. The company constructs and markets a diverse portfolio of properties, including residential complexes, commerci...

How the Company Makes Money

Sumit Woods Ltd. primarily makes money by developing real estate projects and monetizing them through the sale of completed (or under-construction) residential and commercial units to customers. Revenue is typically recognized from (a) outright sale...

Sumit Woods Ltd. Financial Statement Overview

Summary

Weak overall profile driven by poor cash generation (Cash Flow score 30): operating cash flow was negative in four of the last six years, including ₹-469M in FY2026, with an OCF/net income ratio of -0.49x — profits on paper are not converting to cash. The income statement (42) reflects a sharp 37% revenue decline in FY2026 to ₹949M and volatile, inconsistent gross and EBITDA margins. The balance sheet (48) is the relative bright spot, with equity more than tripling to ₹1.87B and debt-to-equity improving from 2.06x to 0.63x, though total debt nearly doubled in FY2026 to ₹1.18B and return on equity fell to just 3.2% from 11.8% in FY2024.

Income Statement

42Neutral

Balance Sheet

48Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	764.38M	948.81M	1.41B	1.80B	1.01B	599.51M
Gross Profit	187.18M	372.85M	298.50M	519.12M	423.64M	108.37M
EBITDA	136.15M	202.92M	267.98M	320.54M	251.94M	66.70M
Net Income	33.85M	60.55M	114.43M	89.93M	76.40M	-9.09M
Balance Sheet
Total Assets	4.62B	4.03B	3.16B	2.68B	2.74B	2.22B
Cash, Cash Equivalents and Short-Term Investments	119.31M	214.96M	284.01M	40.78M	54.99M	72.27M
Total Debt	1.62B	1.18B	638.78M	1.19B	1.38B	1.10B
Total Liabilities	2.38B	1.87B	1.26B	1.68B	1.85B	1.45B
Stockholders Equity	1.92B	1.87B	1.60B	760.19M	671.12M	559.64M
Cash Flow
Free Cash Flow	-468.72M	-468.72M	117.69M	359.90M	-264.73M	-287.79M
Operating Cash Flow	-468.72M	-468.72M	143.94M	359.90M	-151.78M	-282.74M
Investing Cash Flow	-252.68M	-252.68M	-126.19M	-51.27M	-41.70M	-34.38M
Financing Cash Flow	624.37M	624.37M	164.80M	-322.44M	177.90M	354.84M

Sumit Woods Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price47.05

Price Trends

50DMA48.09Negative

100DMA48.83Negative

200DMA47.48Negative

Market Momentum

MACD-0.19Negative

RSI50.63Neutral

STOCH71.14Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUMIT, the sentiment is Negative. The current price of 47.05 is above the 20-day moving average (MA) of 45.70, below the 50-day MA of 48.09, and below the 200-day MA of 47.48, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 71.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUMIT.

Sumit Woods Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SUMIT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:LANCORHOL	72Outperform	INR 2.40B	4.18	―	0.93%	14.16%	2955.66%
IN:AMJLAND	68Neutral	INR 1.47B	10.02	―	0.56%	-11.14%	-29.81%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:UMIYA.MRO	55Neutral	INR 1.88B	50.28	―	―	21.26%	-90.63%
IN:PARSVNATH	54Neutral	INR 1.17B	-0.33	―	―	-5.41%	22.14%
IN:SUPREME	43Neutral	INR 1.19B	172.17	―	―	-86.42%	-89.80%
IN:SUMIT	40Underperform	INR 2.13B	29.04	―	0.43%	3.23%	-36.54%

* General Sector Average

Performance Comparison

IN:SUMIT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SUMIT	Sumit Woods Ltd.	47.05	-36.31	-43.55%
IN:AMJLAND	AMJ Land Holdings Ltd.	35.89	-18.64	-34.18%
IN:LANCORHOL	Lancor Holdings Limited	32.60	4.32	15.26%
IN:UMIYA.MRO	Umiya Buildcon Limited	100.53	8.62	9.38%
IN:PARSVNATH	Parsvnath Developers Limited	2.69	-12.34	-82.10%
IN:SUPREME	Supreme Holdings & Hospitality (India) Limited	30.82	-53.70	-63.54%

Sumit Woods Ltd. Corporate Events

Sumit Woods Reports Strong H1 FY27 Revenue and Profit Growth

Nov 6, 2026

Sumit Woods Limited reported strong unaudited financial results for H1 FY27, with standalone revenue from operations rising 55% year on year to ₹81.09 crore and standalone profit after tax increasing 58% to ₹6.24 crore. Consolidated revenue grew 49%...

Sumit Woods Holds 30th AGM Virtually in Line With MCA and SEBI Norms

Sep 3, 2026

Sumit Woods Limited convened its 30th Annual General Meeting on 3 September 2026 via video conferencing and other audio-visual means, in line with MCA and SEBI circulars permitting virtual shareholder meetings. The session, chaired by Board Chairman...

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 22, 2026

Sumit Woods Ltd. AI Stock Analysis