Buy Sarla Performance; target of Rs 183: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research is bullish on Sarla Performance Fibers and has recommended buy rating on the stock with a target of Rs 183 in its April 4, 2013 research report.
 
“Sarla Performance Fibers Limited (formerly known as Sarla Polyester Limited) is a 100 percent EOU engaged in the manufacturing and export of polyester and nylon textured, twisted and dyed yarns, covered yarns, high tenacity yarns and sewing thread. Beginning as a manufacturer of commodity yarns, the company has successfully shifted its focus and established itself as a manufacturer of specialized and higher value added yarns. Over the years SPFL has expanded its activities with the expansion and upgradation of existing facilities in India, as well as through creation of new facilities overseas with the primary objective of establishing closeness to customers to provide quick and efficient services to them. The company has an installed capacity of 11900 tons per annum for manufacturing yarns in Silvassa and 3200 tons per annum for a Dyeing unit at Vapi.”
 
“SPFL, a 100 percent EOU engaged in the manufacturing of yarn and threads and enjoying strong customer relationships with renowned brands across the Americas, Europe and Asia, reported its financial results for the quarter ended 31 DEC, 2012. The company’s net profit jumps to Rs.61.93 million against Rs.14.79 million in the corresponding quarter ending of previous year, an increase of 318.73 percent. Revenue for the quarter rose 18.90 percent to Rs.552.06 million from Rs.464.30 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.8.91 a share during the quarter, registering 318.73 percent increase over previous year period. Profit before interest, depreciation and tax is Rs.106.98 millions as against Rs.48.55 millions in the corresponding period of the previous year.”
 
“At the current market price of Rs 162, the stock P/E ratio is at 4.45 x FY13E and 3.45 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.36.39 and Rs.46.98 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 18 percent and 38 percent over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 2.59 x for FY13E and 2.05 x for FY14E. Price to Book Value of the stock is expected to be at 1.01 x and 0.86 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 183 for medium term investment,” says Firstcall Research report.

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