Kaytex Fabrics Limited

We are a fast-fashion fabric solutions and manufacturing company, combining technology, design, and traditionalcraftsmanship to deliver textile and fashion products. We manage the entire process—from yarn to finished fabricproduction—ensuring quality and the ability to quickly adapt to changing market demands. We specialize in creating fabricsfrom a variety of fibres, including cotton, viscose, modal, acrylic, nylon, linen, and polyester. Our focus on digitalprinting—allows us to create customizable designs suited to the fastpaced nature of the fashion industry. With manufacturing facilities operating at Gurugram, Ranipet, Kancheepuram, and Pune spread across approx. 5 acres of cumulative production area. The manufacturing units are equipped with latest technology and backed by centralized R&D centers and warehouses, ensuring that the products consistently meet global quality standards. Our R&D laboratory is dedicated to the continuous innovation of new products through rigorous testing and chemical experimentation. The diverse product range includes, Plastic Injection Moulding Parts (Interior & Exterior Parts), PU-Foam-Moulding, Foam / Label & Stickers Products, Screen Sealing Parts, EPP Moulding, Brought out parts. As per financial performance, Sellowrap Industries Limited has posted total income / net profits of Rs 133.43 Cr / Rs 2.86 Cr (FY23), Rs 139.09 Cr / Rs 5.94 Cr (FY24) and Rs 163.31 Cr / Rs 9.97 Cr (FY25). So as per previous financials data, company has shown average results, but sudden jump in net-profit just before IPO raises doubts. Company has posted an average EPS of Rs 7.82 and average RoNW of 18.49% for last three fiscals. Issue is priced at a P/BV of 1.70 as per NAV of Rs 48.75/- 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 39.90, 19.19 and 11.44 respectively, which looks fairly priced. As per RHP, comparision between listed peers are shown in above table. On BRLM's front, Gretex Corporate Services Limited is associated with this SME IPO and handled 17 SME IPOs & 1 Mainboard IPOs in last 3 years. From last 10 IPOs, eight opened above issue price or at par and remaining below issue price on the day of listing. As of now from last 10 IPOs, seven are trading below issue price and remaining all above issue price as on today. ( As on 23.07.25 ) As per financials, Sellowrap Industries Limited has shown average result, RoNW is 21.44% and P/E is respectively 39.90, 19.19 and 11.44 as per FY23, FY24 and FY25 earnings. So, issue looks fairly priced as per recent earnings, but sudden rise in net-profit raises doubts. Company is in manufacturing of customized components for the automotive, non-automotive and white goods industries, which is highly competitive business segment. Performance of BRLM is average. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Sanjeev Kandhari
• 2 Amit Kandhari
• 3 Shelly Kandhari
• 4 Priti Kandhari