Sutlej Textiles and Industries Valuation

Q: What is the Fair Price of SUTLEJTEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SUTLEJTEX (₹58.98) is trading above our estimate of [[fair value]] (₹9.22)

Is SUTLEJTEX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SUTLEJTEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SUTLEJTEX (₹58.98) is trading above our estimate of fair value (₹9.22)

Significantly Below Fair Value: SUTLEJTEX is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SUTLEJTEX?

Key metric: As SUTLEJTEX is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SUTLEJTEX. This is calculated by dividing SUTLEJTEX's market cap by their current revenue.
What is SUTLEJTEX's PS Ratio?
PS Ratio	0.4x
Sales	₹26.07b
Market Cap	₹9.66b

SUTLEJTEX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	65.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does SUTLEJTEX's PS Ratio compare to its peers?

The above table shows the PS ratio for SUTLEJTEX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.6x
500296 Nahar Spinning Mills	0.3x	n/a	₹8.9b
531978 Ambika Cotton Mills	1x	n/a	₹8.4b
500207 Indo Rama Synthetics (India)	0.3x	n/a	₹10.2b
GHCLTEXTIL GHCL Textiles	0.8x	n/a	₹9.0b
SUTLEJTEX Sutlej Textiles and Industries	0.4x	n/a	₹9.7b

Price-To-Sales vs Peers: SUTLEJTEX is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does SUTLEJTEX's PS Ratio compare vs other companies in the IN Luxury Industry?

52 Companies	Price / Sales	Estimated Growth	Market Cap
RAJESHEXPO Rajesh Exports	0.03x	16.3%	US$823.63m
500207 Indo Rama Synthetics (India)	0.3x	n/a	US$120.72m
500296 Nahar Spinning Mills	0.3x	n/a	US$105.54m
500350 RSWM	0.2x	n/a	US$97.11m

52 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: SUTLEJTEX is good value based on its Price-To-Sales Ratio (0.4x) compared to the Indian Luxury industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is SUTLEJTEX's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SUTLEJTEX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SUTLEJTEX's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.