Sihora Industries Limited

Sihora Industries Limited is engaged in the business of manufacturing and sale of narrow woven fabrics, lace, digitally printed narrow fabrics, woven labels, tapes, zippers, elastics and other textile products, including technical textiles, for use in fashion and industrial sectors. Company's operations are headquartered in Surat, Gujarat, which is a textile manufacturing hub. The business integrates technology with traditional manufacturing processes for apparel clients, proprietary brands, and contract customers. They manufacture customizable products for brands, retailers, wholesalers, and end consumers. The Company operates an integrated textile manufacturing facility located in Surat, Gujarat, which undertakes end-to-end textile manufacturing processes, including yarn processing, weaving, digital printing, embroidery, dyeing, and finishing. The facility includes infrastructure for digital printing (reactive and sublimation), weaving through rapier looms and needle looms, electronic jacquard weaving and standard finishing processes. Capacity utilisation for narrow woven fabric for the period FY23, FY24, FY25 and upto 31.08.25 FY26 is respectively 77%, 71.60%, 83.33% and 90%. For zipper production for the period FY25 and upto 31.08.25 FY26 is respectively 85.90% and 83% respectively. Current installed capacity as on 31.08.25 for rapier looms, zipper, Needle Looms (Narrow woven fabrics) and Needle Looms Machine (Elastic) is respectively 7,86,240 meters, 5,72,460 Kgs, 2,05,920 Kgs and 1,02,960 Kgs.  As per financial performance, Sihora Industries Limited has posted total income / net profits of Rs 12.10 Cr / 0.30 Cr (FY23), Rs 11.62 Cr / Rs 0.60 Cr (FY24), Rs 15.06 Cr / 1.87 Cr (FY25) and Rs 5.86 Cr / 0.45 Cr (31.08.25 FY26). So as per previous financials data, company has shown steady growth, but sudden rise in net-profit just before IPO raises doubts. Company has an average EPS of Rs 2.48 and average RoNW of 60.34%% for last three fiscals. Issue is priced at a P/BV of 4.68 as per NAV of Rs 14.11/- as on 31.03.25. 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 58.93, 18.78 and 32.77 respectively. As per RHP, there are no listed peers in Indian market. On BRLM's front, Sobhagya Capital Options Private Limited is associated with this SME IPO, and has handled 1 SME IPOs in last three fiscal years. That only IPO opened below issue price and currently also trading below issue price. ( As on 10.10.25 ) As per financials, Sihora Industries Limited has shown steady growth, RoNW is 35.60% and P/E is 58.93, 18.78 and 32.77 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced and sudden rise in net profit just before IPO raises doubts. Company is engaged in the business of manufacturing and sale of textile products, which is highly 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 Mr. Gautam Vallabhbhai Sihora
• 2 Mrs. Priyal Gautamkumar Sihora