LWS KNITWEAR LIMITED

1. Introduction:

• Brief introduction of the company:

Started in 1989, LWS Knitwear Ltd., rooted in Ludhiana, Punjab builds knit textiles along with ready-made clothing. While homegrown orders keep machines running, overseas buyers pull a steady share of output too. Garments roll out tailored for everyday comfort plus changing weather patterns across regions.

• Industry overview:

Jobs and money from clothes making still play a big role in India’s economy. Rising interest in new styles helps growth, along with people having more spending cash, while companies abroad choose to source production here. Knitted garments gain an edge because trends change quickly, comfort matters more now.

• Purpose of the Analysis:

A look at LWS Knitwear Ltd begins by checking how well it handles money. What works well shows up alongside what holds it back. Problems inside the company mix with outside threats. Ahead lies a path shaped by choices already made. Each piece fits into how things might unfold next.

2. Company Overview:

• Background and History:

LWS Knitwear Ltd. began life because more people wanted knit clothes. Its factory space grew, then so did the kinds of items it made. Step by step, local shops started stocking their goods, later followed by stores abroad. The climb wasn’t fast in the industry.

• Business Model:

Most of its work involves making knitwear, selling it to big stores, smaller shops, or overseas customers. Inside the factory walls, everything gets made from start to finish. Orders tend to come in large amounts, shaping how much money comes in each season. What sells often ties closely to shifts in fashion trends throughout the year.

• Key Products and Services:
• Knitted garments
• Hosiery products
• Casual wear apparel
• Winter wear products.

• Market Position:

LWS Knitwear Ltd. isn’t a major name in India’s knitwear market. Though the field brims with rivals, steady production keeps it afloat. Long-standing buyer ties help hold things together. Still, it stays far from leading ranks in the sector.

3. Promoter and Founder Overview:

4. Financial Statement Analysis:

• Income Statement Analysis:

Trend analysis:

Year by year, things inch forward. From ₹75 crore in FY2024, revenue climbed to ₹108 crore the next year, thanks to tighter spending and a small bump in earnings per sale. 

• Balance Sheet Analysis:

The company's finances sit comfortably mid-range. Borrowing exists - yet stays within bounds - showing only partial dependence on loans. Stability marks the equity position.

• Cash Flow Statement Analysis:

(Figures in Rs. Crores)

Still bringing in money from daily work, though just enough to cover essentials. Money goes out for buying equipment, plus upkeep costs pile up. 

• Key Financial Ratios:
• Profitability Ratio - Net Profit Margin

Profit after costs sits near 4 to 5%, showing smaller returns than major competitors.

• Liquidity Ratio - Current Ratio

A figure near 1.2 to 1.4 shows a balanced stance on handling immediate debts.

• Leverage Ratio - Debt to Equity Ratio

A middle level of debt compared to ownership funds suggests care in taking on loans. 

• Efficiency Ratio - Inventory Turnover Ratio

A fair pace of stock rotation hints at steady customer interest alongside manageable supply levels. 

5. Key Insights and Interpretation:

• Strengths:

Operations keep steady despite tough competition among fabric makers. Profits rise slowly while income climbs, showing things run without major changes. Factories that already work well help hold everything together. Longtime buyers stick around, adding balance when changes happen elsewhere.

• Weaknesses:

Still far behind top players when it comes to profit. Operations too small to open new doors. Earnings wobble because business leans heavily on peak seasons.

• Risk Factors:

One moment cotton costs soar, the next they crash - either way, margins feel the squeeze. Rivals at home keep pushing just as hard as those overseas, making every sale a battle. When buyers shift what they want, whether from tariffs or hemlines, orders follow without warning.

• Future Outlook:

Fresh chances appear as more people want knitted clothes and overseas orders grow. Moving into different regions along with broadening what is offered might lift results. Still, how well things go ahead relies heavily on growing output, making profits stronger, while shifting alongside evolving fashion needs.

6. Conclusion:

• Final evaluation of financial health:

LWS Knitwear Ltd. holds steady with small gains showing up over time. Growth creeps forward, yet momentum drags behind earlier steps. Margins stay thin, not shrinking further but not expanding either. Strength on the balance sheet sits somewhere in the middle - nothing weak, nothing strong.

• Investment or performance perspective:

LWS Knitwear Ltd. moves forward - small steps, sure footing. Not loud, yet it keeps going where others might stall. Growth though slow enough to barely notice week by week. Risk-tolerant minds might find space here, just not those chasing quick wins.

• REFERENCES:
• Website- https://www.lwsknitwear.com/
• Annual reports.