Blue Chip Tex Industries Limited
Introduction
Blue Chip Tex industries limited is an Indian based, listed, textile manufacturing company, which is engaged in the manufacturing of products touching on textile.
Industry Size
The Indian textile industry is estimated to be USD 165-180 billion ( ₹13 -15 lakh crore).
Contributes:
~2–3% of India’s GDP
~13% of industrial production
~12% of export earnings
India is:2 nd-largest textile producer of the world.
Largest producer of cotton
📈 Growth Trends
Growth in industry projected at about 8-10 CAGR.
Projected size:
USD 250 billion by 2030
Key segments:
Apparel (largest)
Home textiles
Fastest growing technical textiles.
🌍 Export Market
India textile exports:
Approximately USD 35-45 billion every year.
Major export markets:
USA
Europe
Middle East
Analysis Objective.
Evaluate financial performance.
Become a business model and management learner.
Trace strong points, threats and perspective.
Company Overview
Background and History
Head office: Silvassa (Dadra Nagar Haveli)
Listed on BSE
Business Model
Manufacturing-based model
Produces textile products
Turnover on sale of textile goods.
Key Products / Services
Textile products (it is likely that they are yarn/fabric-based products).
Industrial production of textiles.
Market Position
Small-cap textile company
Fragmented and competitive market.
Limited pricing power
Founder / Promoter Introduction.
Mr. Shahin N. Khemani -Managing Director.
🔹 Professional Background
Bachelors in Management Studies (Mumbai University).
Master in Technology Entrepreneurship (University of London).
More than 14 years experience in textile industry.
🔹 Contribution to Company Development.
Business strategy
Productivity improvement
Cost control
Quality enhancement
Important catalyst of execution and development.
Financial Statements
Profit and Loss
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 252.64 | 255.46 | 249.10 |
Gross Profit | 8.90 | 9.21 | 6.30 |
EBITDA | 4.37 | 3.72 | 1.54 |
Depreciation | 2.57 | 2.55 | 2.55 |
Interest | 0.61 | 0.46 | 0.20 |
EBT | 1.19 | 0.71 | -1.21 |
Net Profit | 0.91 | 0.52 | -1.01 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Equity Share Capital | 1.98 | 1.98 | 1.98 |
Reserves | 25.76 | 25.78 | 24.55 |
Total Equity | 27.74 | 27.76 | 26.53 |
Borrowings | 10.06 | 4.43 | 1.60 |
Other Liabilities (CL) | 9.98 | 9.44 | 7.32 |
Total Liabilities | 47.78 | 41.63 | 35.45 |
Fixed Assets | 21.34 | 19.06 | 16.64 |
Current Assets | 25.23 | 20.87 | 17.43 |
Total Assets | 47.78 | 41.63 | 35.45 |
Cash Flow Statement
Particulars | Mar-23 | Mar-24 | Mar-25 |
Cash Flow from Operating Activities | 1843 | 973 | 2931 |
Cash Flow from Investing Activities | 433 | 915 | -1507 |
Cash Flow from Financing Activities | -2254 | -2244 | -1034 |
Net Cash Flow | 22 | -356 | 390 |
Ratio Analysis
Ratio | Mar-23 | Mar-24 | Mar-25 |
Net Profit Margin (%) | 0.36% | 0.20% | -0.41% |
Gross Profit Margin (%) | 3.52% | 3.61% | 2.53% |
Current Ratio | 2.53 | 2.21 | 2.38 |
Debt to Equity | 0.36 | 0.16 | 0.06 |
Asset Turnover | 5.29 | 6.14 | 7.03 |
✅ Strengths
Well-informed seasoned promoter in the business.
Old time manufacturing factories.
Many years of experience (since 1985).
Constant revenue foundation (~ 249 crore)
❌ Weaknesses
Loss in FY 2024-25
Net Loss: ₹100.61 lakh
Declining revenue (↓2.46%)
Poor (low operating costs) margins.
Small-scale operations
⚠️ Risk Factors
Uncertainty of the textile industry.
Depending on the cost of raw materials.
High competition
Profitability fluctuations
No dividend due to losses
🔮 Future Outlook
Growth depends on:
Cost efficiency
Demand recovery
Export opportunities
Short term prospective: pessimistic/weak as a result of losses.
Long-term: will be based on turnaround in operation.
Financial Health Final Analysis.
Profitability is poor with the revenue stable.
Change profit (= 52 lakh) to loss (= 100 lakh).
Financial health: moderate weak.
Key Investment / Performance Perspective.
Red flag Sign of risky investment in the short term.
Suitable only if:
Turnaround happens
Profitability improves