Rajnandini Fashion India Limited, incorporated in 2010 and headquartered in Jaipur, Rajasthan, is primarily engaged in the manufacturing and trading of ethnic and fashion apparel. The company caters to both Business-to-Business (B2B) and Business-to-Consumer (B2C) segments, offering a wide range of products across multiple price points. A significant portion of its sales is conducted through various online platforms, complementing its traditional distribution channels. The company utilizes an integrated business model that includes fabric sourcing, design and pattern development, embroidery, and stitching. While it manages core manufacturing processes in-house, activities like printing are outsourced to external vendors on a job-work basis. A notable aspect of its B2C operations is a relatively high sales return rate, which ranged between 31.09% and 33.98% over the last three fiscal years. RFIL operates two manufacturing facilities. Unit-I, located in Surat, Gujarat, commenced operations in August 2023. For the nine-month period ended December 31, 2025, Unit-I had an installed capacity of 4,60,460 pieces and achieved an actual production of 4,01,573 pieces, resulting in a capacity utilization of 87.21%. This unit serves as a major production hub for the company's expanding operations. nit-II, situated in Jaipur, Rajasthan, began production in December 2024. During the same nine-month period in Fiscal 2026, it had an installed capacity of 2,45,700 pieces and an actual production of 1,67,155 pieces, operating at a capacity utilization of 68.03%. To support further growth and operational scalability, the company plans to use the IPO proceeds to set up an additional 6,000 sq. ft. facility in Surat and install new plant and machinery. As per financial performance, Rajnandini Fashion India Limited has posted total income / net profits of Rs 28.02 / 0.37 Cr (FY23), Rs 23.59 / Rs 2.29 Cr (FY24), Rs 31.26 Cr / 5.06 Cr (FY25) and Rs 31.21 Cr / 5.13 Cr (Upto Q3 FY26). So as per previous financials data, company has shown nominal growth, sudden rise in net-profit just before IPO, negative cash flow in FY23, FY25 and 9M FY26, high trade receivables and high inventory raise concerns. Company has an average EPS of Rs 4.57 and average RoNW of 48.39% for last three fiscals. Issue is priced at a P/BV of 3.27 as per NAV of Rs 19.28/- as on 31.12.25 If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 28.52, 12.90 and 9.53 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Seren Capital Private Limited is associated with this IPO, and has handled 6 IPOs in last three fiscal years. From last 6 IPOs, all opened above issue price or at par, on the day of listing. As of now, from last 6 IPOs, two are trading below issue price and remaining all are trading above issue price or at par. (as on 21.05.26) As per financials, Rajnandini Fashion India Limited has shown average results, RoNW is 54.41% and P/E is 28.52, 12.90 and 9.53 respectively as per FY24, FY25 and annualised FY26 earnings. So, issue looks fully priced. But sudden rise in net-profit just before IPO, negative cash flow, high debt, higher trade receivables and high inventory raise concern. Company is primarily engaged in the manufacturing and trading of ethnic and fashion apparel, which is highly competitive business segment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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