Shree Ram Twistex Limited

Shree Ram Twistex Limited is engaged in the manufacturing of Cotton Yarns, including Compact Ring Spun and Carded Yarns, both Combed and Carded. The product range also includes value-added yarns such as Eli Twist (Combed and Carded), Compact Slub Yarns, and Lycra-Blended Yarns. The Yarns are used in both knitting and weaving, serving a broad range of end-use segments such as denim, terry towels, shirting, sheeting, sweaters, socks, bottom wear, home textiles, and industrial fabrics. Company operates exclusively in the business-to-business (B2B) segment, supplying the products to institutional buyers such as textile manufacturers, garment exporters, bulk purchasers and fabric processors.  Company's manufacturing  facility in Gondal, Rajkot, Gujarat, houses 17 compact ring-spinning machines with a total spindle count of 27,744. They produce 100% cotton yarns in counts ranging from Ne 8 to Ne 40, including carded and combed varieties ("Ne" refers to the English Cotton Count System, which is a standard way to measure the fineness or thickness of yarn. The higher the Ne, the finer the yarn). They also manufacture Compact  Eli  Twist (Siro) yarns in Ne 40/2 counts ('Ne 40/2 counts' means two-ply yarn made by twisting together two single yarns of  Ne  40  count),  available  in  both  combed  and  carded  forms, known for their strength and smooth finish. In addition, they offer compact Slub Yarns for textured fabric effects and Lycra-blended yarns that combine stretch with comfort, ideal for activewear and fitted garments. Company's operations also generate income from by-products such as cotton waste, which is sold to industries manufacturing non-woven fabrics and open-end yarns. They also sell Viscose-Cotton Mix Yarn, FP Bales, and Open-End Yarn, catering to varied textile segments. These products are sold to fabric manufacturers, weaving units, and traders, based on specific customer needs. As per financial performance, Shree Ram Twistex Limited has posted total income / net profits of Rs 213.57 Cr / Rs 2.05 Cr (FY23), Rs 231.72 Cr / Rs 6.55 Cr (FY24), Rs 256.32 Cr / 7.99 Cr (FY25) and Rs 132.26 Cr / 7.00 Cr (upto Q2 FY26). So as per previous financials data, company has shown steady growth, but sudden rise in net profit and inventory surprising. Company has an average EPS of 2.22 and average RoNW of 9.23% for last three fiscals. Issue is priced at a P/BV of 3.79 as per NAV of Rs 27.47/- as on 30.09.25. 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 63.45, 51.99 and 29.69 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Interactive Financial Services Limited are associated with this IPO, and has handled 23 IPOs (2 Main board and 21 SMEs) in last three fiscal years. ( As on 17.02.26 ) As per financials, Shree Ram Twistex Limited has shown steady growth, RoNW is 10.80% and P/E is 63.45, 51.99 and 29.69 respectively as per FY24, FY25, and annualised FY26 earnings. So issue looks aggressively priced, also sudden rise in net-profit and higher inventory level raises concerns. Company is engaged in the manufacturing of Cotton Yarns, which is very competitive business segment. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Bhaveshbhai Bhikhubhai Ramani
• 2 Jay Atulbhai Tilala
• 3 Nidhi Bhaveshbhai Kothari