Suryalakshmi Cotton Mills Ltd. (SURYALAXMI) AI Stock Analysis

Suryalakshmi Cotton Mills Ltd.

(NSE:SURYALAXMI)

Select Model

Rating:48Neutral

Price Target:INR 58.00▲(16.86% Upside)

Action:reiterated

Date:10/24/26

The score is held back primarily by weak technicals (price below all key moving averages with bearish momentum) and a low-quality, cyclical earnings profile with thin profitability. Offsetting factors include improving balance-sheet leverage and a rebound to positive free cash flow in FY2026, while valuation appears only average given the risk profile.

Positive Factors

Debt ReductionMeaningful debt reduction alongside stable equity improves financial flexibility and can reduce pressure on future cash flows. This gives the company greater capacity to manage textile-cycle volatility, meet obligations, and fund operations even though leverage remains material.

Negative Factors

Volatile Revenue TrendThe uneven revenue pattern indicates that growth is not yet durable and remains sensitive to textile-cycle conditions. Contraction after the FY2023 rebound limits operating leverage, makes planning less predictable, and reduces confidence that recent cash-flow improvements will translate into sustained earnings growth.

Suryalakshmi Cotton Mills Ltd. (SURYALAXMI) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.07B
Dividend Yield: ―
Average Volume (3M): 1,273
Price to Earnings (P/E): 23.5
Beta (1Y): 1.17
Revenue Growth: -1.58%
EPS Growth: -14.14%
Country: India
Employees: 2,188
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Suryalakshmi Cotton Mills Ltd. Business Overview & Revenue Model

Company Description

Suryalakshmi Cotton Mills Limited (SCML) is a textile manufacturer and seller with a global presence, specializing in cotton and blended yarns, a variety of denim fabrics, and apparel. The company's operations span India and numerous international ma...

Suryalakshmi Cotton Mills Ltd. Financial Statement Overview

Summary

Overall financials are improving but still cyclical. Income statement quality is weak (44) due to volatile revenue and very thin profitability. The balance sheet is relatively better (58) with meaningful debt reduction, improving flexibility, while cash flow is mixed (52) with FY2026 rebounding to positive free cash flow but showing notable volatility.

Income Statement

44Neutral

Balance Sheet

58Neutral

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	7.99B	7.95B	7.92B	7.62B	8.42B	7.59B
Gross Profit	2.13B	2.07B	3.00B	2.21B	814.22M	2.33B
EBITDA	488.12M	543.83M	557.42M	432.19M	526.36M	901.79M
Net Income	40.08M	31.15M	36.33M	36.08M	104.01M	2.16M
Balance Sheet
Total Assets	0	7.25B	7.49B	7.28B	6.54B	6.97B
Cash, Cash Equivalents and Short-Term Investments	88.68M	88.68M	10.46M	3.81M	64.33M	71.49M
Total Debt	0	2.58B	2.83B	2.26B	1.98B	2.60B
Total Liabilities	-2.73B	4.53B	4.79B	4.62B	3.91B	4.45B
Stockholders Equity	2.73B	2.73B	2.70B	2.66B	2.63B	2.52B
Cash Flow
Free Cash Flow	181.12M	98.90M	-136.29M	-139.65M	745.67M	407.67M
Operating Cash Flow	194.37M	389.95M	77.60M	194.05M	993.14M	540.06M
Investing Cash Flow	159.79M	-142.62M	-328.14M	-253.91M	-25.06M	-76.68M
Financing Cash Flow	-361.10M	-254.32M	257.31M	-1.18M	-975.13M	-489.97M

Suryalakshmi Cotton Mills Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price49.63

Price Trends

50DMA56.73Negative

100DMA57.97Negative

200DMA57.42Negative

Market Momentum

MACD-1.80Positive

RSI42.21Neutral

STOCH30.89Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SURYALAXMI, the sentiment is Negative. The current price of 49.63 is below the 20-day moving average (MA) of 54.26, below the 50-day MA of 56.73, and below the 200-day MA of 57.42, indicating a bearish trend. The MACD of -1.80 indicates Positive momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 30.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SURYALAXMI.

Suryalakshmi Cotton Mills Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SURYALAXMI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:NAHARSPING	62Neutral	INR 9.40B	12.48	―	0.38%	2.49%	249.40%
IN:NITINSPIN	62Neutral	INR 36.59B	17.28	―	0.46%	-0.01%	21.53%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SALONA	48Neutral	INR 1.34B	55.41	―	0.27%	0.65%	-4.33%
IN:SURYALAXMI	48Neutral	INR 933.31M	23.52	―	―	-1.58%	-14.14%
IN:LAXMICOT	45Neutral	INR 200.11M	-6.86	―	―	-30.67%	-23145.95%
IN:LOYALTEX	43Neutral	INR 992.91M	-1.74	―	―	-38.89%	-4.55%

* General Sector Average

Performance Comparison

IN:SURYALAXMI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SURYALAXMI	Suryalakshmi Cotton Mills Ltd.	49.63	-13.20	-21.01%
IN:LAXMICOT	Laxmi Cotspin Ltd.	11.67	-9.90	-45.90%
IN:LOYALTEX	Loyal Textile Mills Limited	206.15	-54.85	-21.02%
IN:NAHARSPING	Nahar Spinning Mills Ltd	260.65	54.06	26.17%
IN:NITINSPIN	Nitin Spinners Limited	650.90	322.12	97.98%
IN:SALONA	Salona Cotspin Limited	254.80	3.11	1.24%

Suryalakshmi Cotton Mills Ltd. Corporate Events

Suryalakshmi Cotton Files Newspaper Notices With No Direct Business Impact

Sep 4, 2026

Suryalakshmi Cotton Mills Ltd. operates in the textiles sector, focusing on cotton-based yarns, fabrics, and related products for domestic and export markets. The company serves apparel, home textiles, and industrial users, positioning itself as an i...

Suryalakshmi Cotton Mills Sets September 30 Virtual AGM, Opens E-Voting Window

Sep 3, 2026

Suryalakshmi Cotton Mills Ltd. has scheduled its 63rd Annual General Meeting for 30 September 2026 at 11:00 a.m., to be conducted via video conferencing and other audio-visual means, with the company’s registered office deemed as the meeting ve...

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 24, 2026

Suryalakshmi Cotton Mills Ltd. AI Stock Analysis