Home/IPOs/SANATHAN
Start Date19-12-2024
Application Timing10am-5pm
Price Range₹305 - ₹321
Min Qty46
Min. Investment₹14030
Listing DateNA
Close Date23-12-2024
About Sanathan Textiles Limited
Sanathan Textiles is a textile yarn manufacturer, its business is divided into three separate yarn business verticals, consisting of (a) Polyester yarn products (b) Cotton yarn products and (c) Yarns for technical textiles and industrial uses. It is one of the few companies in India with presence across the polyester, cotton and technical textile. Based on operating income, they had a market share of 1.7% in the overall Indian textile yarn industry as of Fiscal 2024. They have more than 3,200 active varieties of yarn products and more than 45,000 stock keeping units (SKUs).
Why To Invest in Sanathan Textiles Limited
Textile yarn manufacturer and exporter with 1.7% market share in Indian textile yarn industry.
The company proposes to utilise the Net Proceeds towards the following objects:
- Repayment and/ or pre-payment of certain borrowings availed by the Company
- Investment in subsidiary viz. Sanathan Polycot Private Limited, for repayment of certain borrowings availed by subsidiary viz. Sanathan Polycot Private Limited.
Financial Table
| Year | Qtr ended June 30th | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Revenue From Operations (Rs. Cr) | 781.1 | 2957.5 | 3329.2 | 3185.3 |
| Profit After Tax (Rs. Cr) | 50 | 133.8 | 152.7 | 355.4 |
Strengths And Risks
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Multi product manufacturer: Sanathan Textiles Limited is one of the few companies amongst its peer group in India with presence across the polyester, cotton and technical textile sectors. The diversified product portfolio allows them to scale new markets and offer broader range of options.
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Focus on product development : Company has an in-house Product Innovation and Development team focussed on developing value added products and using existing machines and infrastructure to prepare customized made-to-order products.
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Fully integrated Yarn manufacturing plant : Company's products are manufactured at its fully integrated polyester facility at Silvassa, that alllows them product flexibility. Silvassa is a strategic location for polyester yarn manufacturers in India due to availability of manufacturing facilities across supply chain of polyester segment.
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Supplier to leading brands: Company has established long-standing relationships with some of the leading consumer brands such as Welspun India Limited, Techno Sportswear Private Limited, Page Industries Limited, D'Décor Home Fabrics Private Limited, Siyaram Silk Mills Limited, Duvalli S.A., G.M. Syntex Private Limited, Wildcraft India Limited, SRF Limited, Ateliers Reunis De Filature etc.
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Deep segment knowledge: Company's deep knowledge and understanding of segment, optimal product assortment and strong supplier network enables procurement at predicable and competitive pricing, brings an overall efficient cycle.
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Raw material supply: Majority of company's raw materials are sourced from few key suppliers. Any inability to procure raw
materials of the required quality and quantity, at competitive prices can impact business.
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Regional concentration: Company derives more than 60% of its revenue from operations from domestic sales from its customers in Gujarat, Maharashtra, and Punjab, which exposes them to risks specific to these Indian geographies and market.
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High debts: Company has availed loans for several purposes including expansion and purchase of capital assets, purchase of vehicles and to meet working capital requirements. As of September 30, 2024, their total sanctioned and outstanding indebtedness was Rs. 2721.5 Cr and Rs. 1393 Cr respectively.
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