SARLAPOLYSARLAPOLY Forensic Risk Analysis

Other Textile Products
Risk ClassModerate Deterioration
Market CapN/A
Primary DriverBalance Sheet Stress
Flagium AI Risk Score
Moderate stress emerging. While not critical, underlying pressure is building.
46 / 100
+26 QoQ
Deteriorating
Sentinel Insight

Some early signs of pressure are visible. Weakness is detected in balance sheet stress. This suggests a building risk profile. Risk is increasing at a faster pace.

100.0th %ile (Sector)Accel: +5 Qtrs
Updated2026-06-02
Market View
₹98.01▼0.35%
PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Balance Sheet Stress
+15.7 pts
Earnings Quality
+15.0 pts
Competitive Position
+15.0 pts
Final Composite Risk46 / 100

Investment Risk Thesis

Historical Trend

Current risk score has risen from 4 → 46 over 13 quarters.

Expected Direction
🚨 Escalate
Primary Deterioration Drivers
  • Margin Compression
  • Inventory Stress
  • Relative Growth Weakness
What to Watch Next Quarter
  • Operating profit margins
  • Debt growth
  • Inventory turnover

Active Risk Objects (8)

CriticalHigh
Margin Compression
📊 Earnings QualityAnnualActive for 1 Years
More Detail
Impact Weight15/15
MomentumAccelerating
Last SignalQ4 FY2026
Operating margin declined by 8.9 bps YoY for two consecutive quarters.

"Early signs of margin erosion. Input costs are beginning to eat into core profits."

Relative Growth Weakness
📊 Earnings QualityAnnualActive for 4 Years
More Detail
Impact Weight12/15
MomentumPersistent
Last SignalQ4 FY2026
Revenue growth consistently lags behind sector median (12.8%).

"Earnings quality is under severe pressure. High accruals suggest potential revenue overstatement."

Low Interest Coverage
💧 Liquidity & CoverageQuarterlyActive for 1 Qtrs
More Detail
Impact Weight8/15
MomentumAccelerating
Last SignalQ4 FY2026
SARLAPOLY: Low Interest Coverage Ratio of -38.98x in FY2026 Q4 (Threshold: 2.5x).

"Interest coverage is dangerously low. Even a minor fall in profit could trigger a default."

Profit Collapse
📊 Earnings QualityQuarterlyActive for 2 Qtrs
More Detail
Impact Weight8/15
MomentumAccelerating
Last SignalQ4 FY2026
SARLAPOLY: Net Profit collapsed by 573.1% from FY2025 Q4 to FY2026 Q4.

"Earnings quality is under severe pressure. High accruals suggest potential revenue overstatement."

Operating Leverage Stress
📊 Earnings QualityAnnualActive for 1 Years
More Detail
Impact Weight10/15
MomentumAccelerating
Last SignalQ4 FY2026
Expenses are consistently growing faster than revenues, creating operational pressure.

"The balance sheet is heavily over-leveraged. Interest payments are consuming most of the profit."

Inventory Stress
📊 Earnings QualityAnnualActive for 2 Years
More Detail
Impact Weight15/15
MomentumAccelerating
Last SignalQ2 FY2026
Inventory growth (14.4%) significantly outpaced revenue growth (-6.8%).

"Stock is piling up in the warehouse. Inventory turnover is slowing down dangerously."

Cash Conversion Deficit
📊 Earnings QualityAnnualActive for 1 Years
More Detail
Impact Weight6/15
MomentumDecaying
Last SignalFY2024
SARLAPOLY: OCF below Net Profit in 2/3 recent years.

"Cash conversion has normalized in the latest period. Operational cash flow is back in sync."

Working Capital Expansion
💧 Liquidity & CoverageAnnualActive for 2 Years
More Detail
Impact Weight10/15
MomentumAccelerating
Last SignalQ4 FY2026
Working capital expansion detected: Receivable days increased by 9.8%.

"Early signs of working capital expansion. Receivable or inventory days are creeping up."

Risk Trajectory
Historical 12-quarter risk trend (Q-11 to Q0) followed by a 2-quarter predictive funnel (Q+1, Q+2).
Loading Chart
Resilience Matrix
Diagnostic benchmarking comparing structural sensitivity and risk buffers against sector medians.
MetricValuevs SectorSignal
Volatility (σ)4.178.38✅ RESILIENT
Sensitivity (ε_s)11.00✅ RESILIENT
Escalation Prob.5%5%✅ NEUTRAL
Safety Buffer+20.0+42.0📈 CRITICAL
Forensic Benchmark Context: Other Textile Products (n=42 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart
Share Price
Risk Score (0-100)
Market Performance
₹98.01(-0.35%)
1M Divergence+5.9%
1 Week-0.03%
1 Month+8.17%
6 Months+11.4%
1 Year-14.42%
2 Year+25.32%
3 Year+153.98%
Sector Average (1M)+2.27%
Sentinel Forensic Assessment
ALGORITHMIC RISK PROFILE • NON-ADVISORY

The risk profile is Moderate Stress and currently deteriorating. Recent structural triggers in balance sheet stress suggest a building pressure on the underlying framework. Material forensic traces are visible in core structural metrics, indicating a progressive erosion of structural stability. Strategic vigilance is advised as structural decay is accelerating.

SARLAPOLY • MARKET STRUCTURE

Stage 1 — Accumulation

The company is in a foundational phase. Risk metrics are stabilizing as the company builds a base for potential future fundamental improvement.

Stage Transition Prob.63%
Trend QualityStabilizing
Phase Progression
Phase Progression Score65%
Readiness LabelModerate (Transition Potential Building)
Probability of Advancing63%
CoinTree Momentum
Composite Z-Score+0.3738σ
Improving momentum strength
Universe Rank
A cross-sectional rank of this stock's composite momentum score compared to all other tracked equities in the universe. A rank of #1 of 1035 means it has the strongest overall price momentum in the market.
#534 of 2716
Top 19.66% in momentum strength
Timeframe Sparklines
1W-0.0%
1M+8.2%
6M+11.4%
Weinstein Indicators
150 DMA₹87.27
200 DMA₹90.53
150 DMA Slope+0.0576%Rising
Relative Strength+16.89%Leading
Relative Turnover (RTR)1.8769
ParticipationHealthy

PEER COMPARISON

Ranked comparison against sector peers

This company shows higher risk compared to the Sector Mean (24).
AKSHARAkshar Spintex Limited
23 Risk
Sector %ile44th
Delta-5
Active Flags19
Accel+0
Governance

Watch

ABCOTSA B Cotspin India Limited
25 Risk
Sector %ile51th
Delta-5
Active Flags10
Accel+0
Balance Sheet Stress

Watch

HIMATSEIDEHIMATSEIDE
40 Risk
Sector %ile95th
Delta+5
Active Flags34
Accel+5
Balance Sheet Stress

Moderate Deterioration

SARLAPOLYSARLAPOLY
46 Risk
Sector %ile100th
Delta+26
Active Flags8
Accel+5
Balance Sheet Stress

Moderate Deterioration

* Peer comparison is based on risk signals, not valuation or returns.

Risk Profiles

Solvency
10100th %ile
VS Sector Median (8.5)
Governance
10100th %ile
VS Sector Median (8.5)
Earnings Quality
00th %ile
VS Sector Median (8.5)
Balance Sheet Stress
2.221.6th %ile
VS Sector Median (8.5)
Competitive Position
00th %ile
VS Sector Median (8.5)
Growth Sustainability
10100th %ile
VS Sector Median (8.5)

Deterioration Timeline

2026

Margin Compression

2026

Relative Growth Weakness

2026

Operating Leverage Stress

2026

Working Capital Expansion

2026

Relative Growth Weakness

2026

Relative Growth Weakness

2026

Inventory Stress

2026

Relative Growth Weakness

2025

Inventory Stress

2025

Working Capital Expansion

2024

Cash Conversion Deficit

Key Financials (INR Cr)

PeriodRevenueNet ProfitOCFDebt
FY2026458-1374191
FY20254526262172
FY20244043331135
FY202339721102106