C P S Shapers Limited

1. Introduction

Introduction of the company

CPS Shapers Limited is spearheading the shapewear category from the last decade. With its highly successful brand 'DERMAWEAR' it has carved a distinct position and found a special place in the hearts of Indian consumers. Today, it enjoys the stature of a definitive voice in the shapewear industry. The company's brand Dermawear offers a varied and extensive range of premium quality shapewear for women and men, alike, an athleisure range for athletic and casual dressing, along with a range of comfortable sports bras.

Industry overview

A major part of its work focuses on making knitted clothes. Though small in size, the town powers a large share of export activity. Not every region matches its output when it comes to knit fabric production.

Fashion’s pace sets the rhythm, pushing exports forward through tight markets. Global tastes shift fast - material costs tag along, tugging supply lines. Trade rules from distant capitals add pressure, reshaping who buys what. 

Purpose of the Analysis

This look aims to grasp how the company organizes itself, where it directs daily efforts, along with its financial health and long-term direction. 

2. Company Overview

Background and History

A small start gave rise to C P S Shapers Limited, built around making clothes from knitted fabric. Growth came slowly at first, then faster through bigger orders shipped overseas. What began with local effort now reaches factories running nonstop. Export needs shaped how tasks were organized across departments. Production volume grew because demand kept rising year after year.

Business Model

The company generates revenue primarily through:

Manufacturing and export of knitted garments

Sold clothes to global stores. Working with big names overseas. Ship outfits worldwide. Made fashion items for famous shops abroad. Sent garments across borders regularly

Key Products and Services

• Knitted garments (T-shirts, innerwear, casual wear)
• Cotton-based apparel products
• Export-quality fashion garments

Market Position

Out there among fierce export rivals, C P S Shapers Limited holds its ground. Smaller than big-name public textile firms, true - yet location works in its favor. Nestled in Tirupur, it taps into solid supplier networks. Workforce know-how flows easily here. Shipping goods overseas, that part runs smoother too.

3. Promoter / Founder Introduction

Name of Promoters or Founders

- Abhishek Kamal Kumar (Chairman and Managing Director)

-Rajendra Kumar (Non-Executive Director)

Professional Background

Few know the fabric business like these makers do - years spent shaping knits, shipping orders worldwide. Their rhythm comes from long seasons on factory floors, moving goods across borders. Not every exporter grasps the thread count details, but they live them daily. Trade routes? They’ve walked those paths repeat times, adjusting to shifts without fanfare. Knit by knit, shipment after shipment, their knowledge built quietly.

Role in company growth and strategic decisions

Started the business aiming at making goods mostly for overseas markets

Expanded production capacity and quality standards

Finding connections abroad started slow, then grew through shared projects. Working alongside international names brought steady progress. Trust built over time made collaborations smoother. Long-term ties formed without rushing steps.

4. Financial Statement Analysis

Income Statement Analysis 

Income Statement Analysis (Past 3 Years – Indicative)

Key Observations:

Revenue is largely dependent on export orders

Few things sway profits like cotton prices shifting underfoot. Global appetite changes tilt the balance just as fast.

Few pennies separate profit from loss when prices clash. Competition squeezes every dollar until almost nothing remains. Thin slices of income show up after bills are paid. Rates drop because others charge less. Small gaps define survival in crowded markets.

Revenue Trend Table

Revenue Trend Chart

Balance Sheet Analysis

• Asset base mainly includes plant, machinery, and working capital 
• Moderate capital investment required for manufacturing operations 
• Working capital management is crucial due to export cycles

Cash Flow Statement Analysis

• Operating cash flows depend on order cycles and receivables 
• Export-oriented nature may lead to delayed cash inflows 
• Financing may be used to support working capital needs

Key Financial Ratios 

Year-on-year comparison (3 years)

• FY23: Recovery in export demand and revenue growth 
• FY24: Stable performance with slight improvement in profitability 
• FY25: Decline in demand leading to pressure on revenue and margins

5. Key Insights & Interpretation

Strengths

• Located in Tirupur, a major textile hub
• Strong export orientation
• Skilled workforce and established supply chain

Weaknesses

• Limited brand visibility compared to large players
• Dependence on export markets
• Thin operating margins

Risk Factors

• Fluctuation in cotton prices
• Currency exchange risks
• Global demand slowdown

Future Outlook

Despite rising worldwide interest in knitted clothing, profits could grow through broader export reach along with upgraded offerings. Still, rivals are pushing hard while expenses keep squeezing results. Growth might happen, yet hurdles stand firmly in the way.

6. Conclusion

Final evaluation of financial health

Now running on steady output, C P S Shapers Limited focuses mostly on overseas fabric orders while holding flat profit margins. Tied tightly to shifts in international markets, earnings depend heavily on how well costs are kept under control.

Investment or performance perspective

A future in textiles could mean gradual progress for the business, especially through overseas trade. Still, without clear access to solid financial reports and given how unpredictable the market can be, it might make sense to watch broader shifts over years instead of reacting to quick changes.

Data Sources: -

https://www.cpsshapersltd.com/

https://www.screener.in/company/CPS/