Shreedhar Spinners Limited is primarily engaged in the manufacturing of compact spun cotton yarn in counts ranging from Ne 10s to Ne 40s. Operating an entirely Business-to-Business (B2B) model, the company supplies 100% cotton yarn suitable for both knitting and weaving applications, catering to various end-use segments like apparel, denim, terry towels, shirting, and industrial fabrics. The company functions with a fully integrated infrastructure, consolidating processes such as bale opening, cleaning, carding, drawing, roving, spinning, winding, and packaging into a single facility, allowing it to provide customized yarn solutions based on specific buyer needs. By focusing exclusively on the B2B segment, Shreedhar Spinners serves textile manufacturers, yarn exporters, traders, and fabric processors. The company has established a robust customer base, serving 42 clients in FY 2026 across 7 states and union territories, heavily concentrated in Maharashtra which contributed 90.20% of its total revenue. Client loyalty is strong, as demonstrated by the fact that the company's top 10 customers contributed 81.51% of its total revenue from operations in the financial year ended March 31, 2026. The company operates its centralized, modern manufacturing facility on a 1,20,000 sq. mt. leasehold plot located in the Additional Amravati Industrial Area Textile Park, Maharashtra. The facility is ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certified, featuring advanced spinning technology, Uster Quantum Clearers, and automatic contamination sorters to ensure rigorous quality control. To bolster its operational efficiency, the company is using IPO proceeds to upgrade its machinery and establish an in-house testing laboratory to evaluate raw cotton bales immediately upon procurement. Shreedhar Spinners maintains an installed capacity of 10,000 MT per annum, utilizing 28,608 spindles as of March 31, 2026. The company maintains exceptional capacity utilization rates. For the financial year 2025-26, it produced 6,013 MT against an available capacity of 6,350 MT, achieving a 95% utilization rate. In FY 2025 and FY 2024, the capacity utilization stood at 98% and 94%, respectively. Furthermore, to manage growing demand, the company commenced operations at its new "Unit 2" in January 2026, which added 10,368 spindles and 1,440 TFO spindles to its existing infrastructure. As per financial performance, Shreedhar Spinners Limited has posted total income / net profits of Rs 126.35 Cr / 3.35 Cr (FY24), Rs 134.43 Cr / Rs 3.42 Cr (FY25) and Rs 146.55 Cr / 6.17 Cr (FY26). So as per previous financials data, the company has shown good growth, and the trade receivables to total sales ratio is well maintained at around 8.18%, 6.07%, and 13.45% for FY24, FY25 and FY26 respectively. Furthermore, unlike many peers, the operating cash flow is strictly positive for FY24 (Rs 0.61 Cr), FY25 (Rs 5.16 Cr) and FY26 (Rs 2.09 Cr). The company has a weighted average EPS of Rs 3.15 and a weighted average RoNW of 19.27% for the last three fiscals. The issue is priced at a P/BV of 2.79 as per the NAV of Rs 19.01/- as (31.03.26). If we attribute the latest earnings of FY24, FY25 and annualized FY26 on equity post-issue, then the asking price of Rs 66 is at a P/E of around 33.90, 33.27 and 18.41 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Marwadi Chandarana Intermediaries Brokers Private Limited is associated with this IPO, and has handled 9 IPOs in the past. From last nine IPO, that opened above issue price or at par, on the day of listing. As of now, from the last 9 IPOs, five are trading below the issue price and the remaining three are trading above the issue price or at par. (as on 17.06.26) As per financials, Shreedhar Spinners Limited has shown good growth, RoNW is 20.74% (in FY26) and P/E is 33.90, 33.27 and 18.41 respectively as per FY24, FY25 and annualized FY26 earnings. So, the issue looks reasonably priced. The company maintains healthy trade receivables and positive operating cash flows, which provide operational comfort. The company is primarily engaged in the manufacturing, marketing, and sale of disposable paper tableware and packaging, operating in the B2B and B2C segments, which is a highly competitive business segment. While the performance of the BRLM is average, the extreme geographical concentration risk (100% reliance on Odisha) and historical compliance delays raise some operating doubts. So, we give a NEUTRAL rating for this IPO for investors with a high-risk appetite looking for long-term growth. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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