Suraj Cotton Mills Ltd

Capital Structure and Liquidity Suraj Cotton Mills has a debt-to-equity ratio of 0.35, indicating a relatively conservative capital structure [doc:valuation snapshot]. However, the company's liquidity is assessed as medium, with a current ratio of 2.06 [doc:valuation snapshot]. Despite a negative net cash position after subtracting total debt, the company maintains a free cash flow of PKR 762.57 million [doc:financial snapshot]. ### Profitability and Returns The company's return on equity (ROE) is 8.26%, and its return on assets (ROA) is 4.6%, both below the typical thresholds for high-performing textile firms [doc:valuation snapshot]. The operating margin is 8.05% (PKR 2.2 billion operating income on PKR 27.4 billion revenue), and the net margin is 4.08% (PKR 1.12 billion net income) [doc:financial snapshot]. These figures suggest moderate profitability relative to industry norms. ### Segments and Geographic Exposure The company operates through two segments: Spinning and Weaving. The Spinning segment produces yarn for apparel, industrial, and home textiles, while the Weaving segment specializes in high-thread-count fabrics for sheeting, apparel, and home furnishing [doc:HA-latest]. The company's operations are concentrated in Pakistan, with no disclosed international revenue streams, making it highly exposed to local economic and political conditions [doc:HA-latest]. ### Growth Trajectory The company's revenue for the latest period is PKR 27.41 billion [doc:financial snapshot]. While no forward-looking revenue guidance is provided, the company's capital expenditure of PKR 894.94 million suggests ongoing investment in production capacity [doc:financial snapshot]. The absence of a clear growth trajectory in the outlook data indicates limited visibility into future performance. ### Risk Factors The company faces medium liquidity risk due to a negative net cash position after debt [doc:risk assessment]. The dilution risk is assessed as low, with no significant dilution potential in the near term [doc:risk assessment]. However, the company's reliance on domestic operations and exposure to textile industry volatility pose ongoing risks [doc:HA-latest]. ### Recent Events No recent filings or transcripts are available in the provided data to indicate material changes in the company's operations or strategy [doc:HA-latest].