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1. At a Glance

Market Cap ₹1,446 Cr | CMP ₹114 | FY25 Sales ₹2,476 Cr | FY25 PAT ₹113 Cr | Exports = 57% of sales | Promoter Holding = 74.4% (unpledged) | Dividend = ₹1/share | EV/EBITDA = 7.2x |

In short: Sportking spins yarns that end up in your Zara hoodie and H&M T-shirt, but its stock spins less yarn than its management concalls.

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2. Introduction

Sportking India started as a humble yarn maker but today, with 3 massive plants in Punjab running at 95%+ utilization, it’s a legit export engine. Over half of revenue now comes from abroad, with marquee clients like Zara, Ikea, and M&S — basically, if your clothes say “Made in Bangladesh” or “Made in India,” chances are Sportking’s yarn is inside.

But this isn’t your typical “family textile mill.” The company is trying to move up the value chain — merging with Marvel Dyers (fabric) and Sobhagia Sales (garments). Translation: from raw yarn supplier to full stack “fiber → fabric → fashion.”

The catch? Margins are still volatile, global textile cycles are brutal, and cotton prices can eat profits faster than an H&M clearance sale.

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3. Business Model

Sportking’s revenue mix =

• Yarns (core business) – Cotton, polyester blends, dyed, acrylic, fancy yarns.
• Fabric & Garments (upcoming via merger) – This is the forward integration play.
• Exports (57%) – Key markets: USA, EU, Australia.
• Domestic (43%) – Serving both B2B and Indian brands.
• Energy Cost Savings – 25MW solar rooftop + 40.3MW new solar JV = double-digit savings.

Think of Sportking as a “backstage textile supplier” — you don’t see their brand on clothes, but they’re supplying to the guys who supply to you.

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4. Financials Overview

Quarterly Snapshot (₹ Cr)

Metric	Q1 FY26 (Jun’25)	Q1 FY25 (Jun’24)	Q4 FY25 (Mar’25)	YoY %	QoQ %
Revenue	586	634	629	-7.6%	-6.8%
EBITDA	71	74	74	-4.1%	-4.1%
PAT	35	32	36	+9.4%	-2.8%
EPS (₹)	2.77	2.50	2.84	+10.8%	-2.5%

Commentary: Topline shrunk, but bottom-line held up thanks to better efficiency + lower interest costs. The “solar play” is starting to kick in.

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5. Valuation (Fair Value Range)

a) P/E Method

EPS TTM = ₹8.86.
Industry P/E = ~22.
Fair range (12–18x EPS) = ₹105 – ₹160.

b) EV/EBITDA

EV = ₹2,108 Cr | EBITDA FY25 = ₹267 Cr → EV/EBITDA = 7.9x.
Peer range = 7–12x → FV = ₹120 – ₹190.

c) DCF (conservative, 5% growth, 10% discount rate)

FV ≈ ₹110 – ₹150.

Final FV Band: ₹110 – ₹160.
CMP ₹114 = cheap side of