Cedaar Textile Limited
Minimum investment
Bidding date
30 Jun - 02 Jul 2025
Price range
—
Minimum quantity
1,000
Minimum investment
₹1,30,000
Issue size
—
IPO doc (link)
RHP docsListing exchange
NSE/BSE
Cedaar Textile Limited, incorporated in September 2020, is a yarn manufacturing company specializing in the production of melange yarn, solid top-dyed yarn, and grey fancy yarns. These yarns are used in household textiles, woven garments, and premium hosiery.
The company caters to both domestic and global fashion brands, delivering high-quality and textured yarns created by blending fibres such as cotton, polyester, viscose, and acrylic. With a well-structured production process and a team of 583 employees, Cedaar Textile is positioned as a scalable and export-ready textile manufacturer.
As of March 2024, the company recorded strong financial performance with a revenue of Rs.191.01 crore and a profit after tax of Rs.11.05 crore, showing robust growth and sustainability in the business.
Diversified Product Portfolio: Cedaar Textile manufactures a wide range of yarns such as melange, solid top-dyed, and grey fancy yarns, catering to multiple segments within the textile industry. This helps in addressing varied market needs and ensures business resilience.
Export-Oriented Business Model: The company has a strong presence in both domestic and international markets, supplying yarns to reputed global fashion brands. This enhances revenue diversification and global reach.
Consistent Financial Growth: With a revenue of Rs 191.01 crore and a PAT of Rs 11.05 crore in FY24, the company has shown consistent growth. High margins and increasing net worth highlight financial strength.
Strong Return Ratios: The Return on Equity (ROE) stands at 56.06% and Return on Capital Employed (ROCE) at 26.90%, indicating efficient use of capital and healthy profitability.
Focus on Sustainability: The company plans to install a solar PV rooftop system, demonstrating its commitment to reducing operational costs and embracing sustainable energy solutions.
High Debt Levels: With a Debt-to-Equity ratio of 5.79, the company carries a significant amount of leverage. This could pose repayment challenges in unfavorable business conditions.
Limited Liquidity Due to SME Listing: Being listed on the NSE SME platform may limit trading volumes and investor participation compared to mainboard listings.
Volatility in Raw Material Prices: The business is dependent on raw materials like cotton, polyester, and viscose. Price fluctuations in these commodities can directly impact the company’s profit margins.
Highly Competitive Industry: The textile sector is fragmented and competitive, with several small and large players. Sustaining margins and customer loyalty could be challenging in such an environment.
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