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.
2. Introduction
Sportking India started as a humble yarn maker but today, with3 massive plants in Punjabrunning 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 withMarvel Dyers (fabric)andSobhagia 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.
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.
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.
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 fair value, i.e. margin of safety still exists.
6. What’s Cooking – Triggers
- Forward Integration: Mergers with fabric & garment cos → higher margins.
- Export Growth: 39 countries, 57% revenue exports = currency tailwinds.
- Solar Bet: ₹12 Cr for 40.3MW stake
