Spunweb Nonwoven Limited, along with its wholly owned subsidiary, Spunweb India Private Limited ('SIPL'), are engaged in the business of manufacturing of polypropylene spunbond nonwoven fabrics primarily used in industries such as hygiene, healthcare, packaging, agriculture and others (including roofing & construction, industrial and home furnishing). They are one of the largest manufacturers in spunbond nonwoven fabric industry in India, with an installed production capacity of 32,640 MT as of FY24. The product portfolio consists of hydrophobic nonwoven fabric, hydrophilic nonwoven fabric, super soft nonwoven fabric, UV treated fabric, antistatic nonwoven fabric and FR treated fabric in the width of 1.6m, 2.6m and 3.2m with the range of 7 to 150 grams per square metre ('GSM'). These products are available in more than 20 colours and they can be customized in colour with value-added services such as varied coatings, slitting, printing, sheet cutting and wider width fabrics. They are also engaged in supply of various types of nonwoven fabric bags. Company's customers include names such as RGI Meditech Private Limited, Millenium Babycares Limited, Sekhani Industries Private Limited, Myra Hygiene Products Private Limited, Rotech Healthcare Private Limited, Poligof Micro Hygiene (India) Private Limited, Salus Products Private Limited, Kwalitex Healthcare Private Limited, JDS Nonwoven, Vyom Nonwoven, among others. Company manufacture, market and sell the products in domestic as well as international markets. In domestic market, they have catered to more than 400, 450, and 485 customers during Fiscal 2023, Fiscal 2024 and Fiscal 2025. In the international market, they have catered to more than 15, 20, and 20 customers during Fiscal 2023, Fiscal 2024 and Fiscal 2025, respectively, who are based in countries such as the United States of America, United Arab Emirates, Italy, Egypt, Saudi Arabia, Sri Lanka, Nepal, Kenya and Nigeria. Company is located in Rajkot, Gujarat. The manufacturing facility is located at Wankaner, Rajkot, Gujarat with an installed capacity of 20,400 metric ton per annum ('MTPA') operated in three production lines. The total area of the manufacturing facility is 18,197 square meters, which is owned by the Company. The manufacturing facility of SIPL is located at Wankaner, Rajkot, Gujarat with an installed capacity of 12,240 MTPA operated in two production lines. The total area of SIPL facility is 15,580 square meters, which is owned by SIPL. As per financial performance, Spunweb Nonwoven Limited has posted total income / net profits of Rs 117.68 Cr / Rs 1.13 Cr (FY23), Rs 154.24 Cr / Rs 5.44 Cr (FY24) and Rs 227.14 Cr / Rs 10.79 Cr (FY25). So as per previous financials data, company has shown good growth, but sudden rise in net profit raises doubts. Company has posted an average EPS of Rs 4.32 and average RoNW of 24.80% for last three fiscals. Issue is priced at a P/BV of 3.95 as per NAV of Rs 24.31/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on fully diluted equity post issue, then asking price is at a P/E of around 205.35, 42.52 and 21.44 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, Vivro Financial Services Private Limited is associated with this SME IPO and handled 5 SME IPOs in last 3 years. From last 5 IPOs, 4 opened above issue price or at par and remaining below issue price on the day of listing. As of now from last 5 IPOs, all are trading above issue price or at par as on today. ( As on 11.07.25 ) As per financials, Spunweb Nonwoven Limited has shown good result, RoNW is 31.63% and P/E is respectively 205.35, 42.52 and 21.44 as per FY23, FY24 and FY25 earnings. So, issue looks fully priced as per recent earnings, but if company can maintain similar growth rate in future that needs to be watched. As on October 31, 2024, the Company has an Order Book of Rs 8832.66 lakhs. Company is engaged in the business of manufacturing of polypropylene spunbond nonwoven fabrics. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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