Kalahridhaan Trendz IPO Financial Analysis

Kalahridhaan Trendz IPO Financial Analysis
Kalahridhaan Trendz IPO Financial Analysis

by Tanushree Jaiswal Last Updated: Feb 15, 2024 - 05:06 pm 216 Views
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Kalahridhaan Trendz, established in 2016 specializes in manufacturing and trading embroidered fabric, grey cloth trading and processing fabric for suiting, shirting and dress materials. Their focus is on supplying these products to the B2B market. Kalahridhaan Trendz is set to launch its IPO on 15 February 2024. Here's a summary of the company's business model, strengths, risks and financials to assist investors in making informed decisions.

Kalahridhaan Trendz IPO Overview

Kalahridhaan Trendz Ltd, established in 2016 specializes in manufacturing dyes and processing textiles. Operating with two main verticals - Embroidery & Knitting and Dyeing & Printing the company's production facility spans 1.50 lakh square feet with a daily capacity of 1.00 lakh meters. The company has two embroidery machines, each with a daily capacity of 15,000 meters.

In its Dyeing and Printing segment, Kalahridhaan Trendz offers a comprehensive range of textile wet processing machinery, covering various natural and synthetic fibers like Cotton, Polyester, Wool, Viscose, and Silk. The Dress Material unit focuses on developing diverse blends and shades to meet client demands while the Shirting and Suiting segment stays abreast of global fashion trends, leveraging advanced technology and skilled labor to deliver quality products. Get more details about Kalahridhaan Trendz IPO in this article.

Kalahridhaan Trendz IPO Strengths

1- The factories are located near Narol Circle on the outskirts of Ahmedabad City, making it easy to transport both raw materials and finished products across the state.

2- All products leaving the factory undergo inspection by the packing and dispatch department. With a commitment to quality in products, processes, and materials, the company consistently receives repeat orders from satisfied buyers due to its ability to meet its high standards.

3- Experienced promoters and management team.

Kalahridhaan Trendz IPO Risk

1- The top ten buyers and suppliers drive most of the revenue and raw material supply. Any disruption can impact the company financially.

2- The company depends on its manufacturing facilities, If there are unexpected slowdowns or shutdowns, it could hurt the company's business, finances and overall condition.

3- An increase in raw material costs or supply shortages may negatively impact pricing, product availability, and the company's financial health.

4- Negative free cash flow in FY23 could potentially impact the business if it continues.

Kalahridhaan Trendz IPO Details

Kalahridhaan Trendz IPO is scheduled from 15 to 20 February 2024. It has a face value of ₹10 per share and the IPO's price is ₹45 per share. 

Total IPO size (₹Cr) 22.49
Offer for sale (₹Cr) 0.00
Fresh issue (₹Cr) 22.49
Price band (₹) 45
Subscription dates 15 Feb 2024 to 20 Feb 2024

Financial Performance of Kalahridhaan Trendz IPO

PAT for Kalahridhaan Trendz IPO was ₹110.54 Lakhs on 31st March 2021, ₹246.20 Lakhs on 31st March 2022 and ₹666.01 Lakhs on 31st March 2023. This demonstrates an increase in profitability over the three years, indicating positive growth.

Period 31 Mar 2023 31 Mar 2022 31 Mar 2021
Assets (₹ Lakhs ) 10,962.55 10,297.94 5,979.36
Revenue (₹ Lakhs ) 18,417.01 18,390.46 13,235.91
PAT (₹ Lakhs ) 666.01 246.20 110.54
Total Borrowing (₹ Lakhs ) 6,105.33 5,249.90 3,145.56

Kalahridhaan Trendz IPO Key Ratios

Kalahridhaan Trendz IPO's ROE was 12.28% in FY21, 21.48% in FY22, and 36.75% in FY23. ROE measures how efficiently the company generates profits from shareholders' equity, with higher percentages indicating better performance. The increasing trend indicates improved profitability and shareholder value creation over the three years.

Particulars FY23 FY23 FY21
Sales Growth (%) 0.15% 38.94% -
PAT Margins (%) 3.62% 1.34% 0.84%
Return on Equity (%) 36.75% 21.48% 12.28%
Return on Assets (%) 6.08% 2.39% 1.85%
Asset Turnover Ratio (X) 1.68 1.79 2.21
Earnings per share (₹) 7.74 2.51 1.29

Kalahridhaan Trendz IPO Vs Peers

Among its peers, Kalahridhaan Trendz has the lowest Price to Earnings (P/E) ratio of 8.24, while Kitex Garments has the highest P/E ratio of 26.08.  A lower P/E ratio generally indicates that the stock is undervalued relative to its earnings, while a higher P/E ratio suggests that the stock may be overvalued

Company EPS P/E(x)
Kalahridhaan Trendz 5.46 8.24
Spl Industries Ltd. 8.22 9.03
Kitex Garments Ltd. 8.94 26.08
Monte Carlo Fashions 64.03 10.84

Promoters of Kalahridhaan Trendz IPO

1. Niranjan Dwarkaprasad Agarwal

2. Aditya Agarwal

3. Sunitadevi Agarwal

The company is promoted by Niranjan Agarwal, Aditya Agarwal and Sunita Agarwal with the current promoter holding standing at 96.22%. Following the fresh issue of shares in the IPO promoter's holding will be diluted to 68.24%.

Final Words

This article takes a closer look into Kalahridhaan Trendz IPO scheduled for subscription from 15 February 2024.
 

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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