Kizi Apparels Ltd
- INTRODUCTION
Kizi Apparels Ltd began operations in Jaipur in March 2023. It makes ready to wear clothing for women, blending traditional ethnic styles with modern Western designs. While rooted in manufacturing, it also handles trade activities across both segments. The firm focuses solely on female apparel without branching into other categories.
- Industry-Overview
A big part of India’s economy comes from making clothes—about 2.3% of the country’s total output. This industry also makes up nearly one-eighth of all factory activity. From exports, it pulls in more than 12% of foreign income. Women’s fashion inside the nation is shifting quickly toward store-bought outfits. Shoppers outside major metros are fueling this change, wanting recognizable brands that fit daily life.
- Purpose of the Analysis
A close look at Kizi Apparels' core results, how smoothly it runs day to day, its money situation. The goal—sharp clarity through numbers, nothing vague, just facts laid bare for those weighing investment choices.
2. COMPANY-OVERVIEW
- Background-History
A fresh start marked its path when it became a private firm early that year. By mid-2023, shifting gears, it moved into public status. The jump came through a BSE SME listing, opening doors to funds. Fueling day-to-day operations plus growth shaped the reason behind the move.
- Business-Model
Kizi makes clothes while also handling production work for other fashion labels across India. Instead of just selling wholesale, it reaches customers face to face via its own stores. Alongside physical outlets, products move through partner networks online. One key digital marketplace involved is Myntra, where shoppers browse and buy. Production feeds both external clients and internal stock needs. This blend keeps operations active on multiple fronts at once.
- Key Products-Services
Starting off, there's ANUTARRA—this one brings together high-end traditional clothing such as kurtas paired with dupattas. On a different note, KIZI steps in with modern styles, think dresses and shirts that lean toward Western fashion. Each brand holds its own space within the main collection.
- Market-Position
Tiny in size—worth around ₹12 crore—Kizi sticks close to home, mainly operating across Rajasthan. Instead of battling big players such as Arvind Ltd, it slips into its own space: offering budget-friendly quality wear for towns just beyond cities. Its edge lies not in scale but in knowing exactly who it serves.
- PROMOTER-FOUNDER INFORMATION
Name of-Promoter(s) /-Founder(s) | Professional Background | Role in Company Growth and Strategic-Decisions |
|---|---|---|
Mr. Abhishek Nathani | The person leading things is Mr. Abhishek Nathani, who built his career deep in India’s fabric networks, clothing production, and store logistics. | At the company, he shapes long-term direction—behind moves like installing 40 new sewing units—and guides how physical shops evolve. |
Mrs. Kiran Nathani | Then there is Mrs. Kiran Nathani, coming from a background handling money flows, large scale operations, and balance sheets in corporate settings. | Her role is to make funding choices, making sure regulations are followed, managing cash needs day to day and guiding where investor funds go after public listing. |
- FINANCIAL-STATEMENT ANALYSIS
- Income-Statement Analysis
Particulars | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
Sales / Revenue | 0.00 | 20.27 | 26.43 |
Expenses | 0.00 | 18.52 | 24.41 |
Operating Profit | 0.00 | 1.75 | 2.02 |
Operating Profit Margin (OPM %) | - | 8.63% | 7.64% |
Other Income | 0.00 | 0.01 | 0.00 |
Interest | 0.00 | 0.63 | 0.67 |
Depreciation | 0.00 | 0.18 | 0.20 |
Profit Before Tax (PBT) | 0.00 | 0.95 | 1.15 |
Tax Percentage | - | 24.21% | 25.22% |
Net Profit | 0.00 | 0.72 | 0.86 |
- Revenue-Chart
Key-observations:
- Starting from nothing when it launched in March 2023, Kizi hit ₹26.43 Cr by FY25 - a sign of fast progress and real customer pull. That jump didn’t rely on luck; clear momentum built through focused work early on.
- Even though income jumped 30.4%, earnings rose just 19.4%. Costs crept up, reducing the company’s margin from 8.63% down to 7.64%. Shares now bring less per unit - each one worth ₹1.10 instead of ₹1.40 - with more shares floating after going public.
- Balance-Sheet Analysis-(Rs.-In crore)
Particulars | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
Total Assets | 0.01 | 13.41 | 20.45 |
Total Liabilities | 0.01 | 13.41 | 20.45 |
Total Equity | 0.01 | 5.88 | 13.58 |
Key-observations:
- FY25 saw total assets reach ₹20.45 Cr, yet most of that came from current holdings like unpaid invoices and stock piling up. While growth shows on paper, it's tied largely to items not yet converted into cash. A closer look reveals little movement beyond inventory buildup and delayed payments waiting collection.
- A cushion of ₹13.58 crore emerged after the IPO, anchoring the company's stake. This base stood ready when early operations faced rough patches.
- Only a small amount of borrowing sits on the books ₹5.46 crore in fiscal 2025 suggesting leaders steer clear of heavy loans often seen across small textile firms.
- Cash-Flow Statement Analysis (Rs. In crore)
Particulars | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
Cash from Operating Activity | -0.01 | -3.13 | -7.82 |
Cash from Investing Activity | 0.00 | -1.13 | -0.08 |
Cash from Financing Activity | +0.01 | +3.89 | +7.78 |
Net Cash Flow | 0.00 | -0.37 | -0.11 |
Key-observations:
- Operating Cash Flow hits -₹7.82 Cr. Even with reported profits, money stays locked inside day-to-day operations.
- Out here, just a tiny cash drain only ₹0.08 Cr slipped out. That means no big spending on machines or buildings lately. Few signs point toward costly upgrades right now. Money stayed mostly put, not poured into new infrastructure.
- Funds moving in hit ₹7.78 Cr, a clear sign that fresh equity plus borrowed cash are backing routine business tasks. Instead of draining resources, this flow adds fuel through investor contributions along with temporary loans keeping things running.
- Key Financial Ratios for FY25
Category | Ratio | Value |
|---|---|---|
Profitability | Net Profit Margin | 3.25% |
Liquidity | Current Ratio | 3.07x |
Leverage | Debt-to-Equity | 0.40x |
Efficiency | Inventory Days | 225.69 Days |
Year-on-Year Comparison (3 years)
- Revenue grew by a robust 30.3% from FY24 (₹20.27 Cr) to FY25 (₹26.43 Cr), proving product-market fit.
- Net Profit saw a 19.4% YoY jump (₹0.72 Cr to ₹0.86 Cr), though profit growth lagged behind revenue growth due to rising operational and manufacturing costs.
- KEY INSIGHTS-INTERPRETATION
- Strengths
Rapid top line scaling (₹0 to ₹26+ Cr in just 3 years); a pristine balance sheet with low leverage (0.40 D/E); and high promoter skin-in-the-game with a 57.28% holding.
- Weaknesses
A dire cash conversion cycle. The business burns cash operationally (-₹7.82 Cr OCF) because inventory takes an alarming 225 days to sell, choking liquidity.
- Risk Factors
Extreme vulnerability to fashion obsolescence due to slow inventory clearance; heavy reliance on local offline markets in Rajasthan exposes the firm to regional economic slowdowns.
- Future Outlook
The recent addition of 40 new stitching machines will boost production capacity by 18-20%, and the Myntra partnership signals aggressive online scaling. If management can resolve inventory bottlenecks, revenue visibility remains strong.
6. CONCLUSION
- Kizi Apparels is highly solvent and rapidly growing, yet operationally strained. Its strong equity foundation and lack of debt are currently subsidizing a highly inefficient working capital cycle.
- As a micro-cap SME stock, it is a high-risk, high-reward proposition. From a performance angle, execution on top-line revenue is excellent. However, from an investment perspective, capital allocators should delay long-term commitments until the company demonstrates positive operating cash flows and significantly faster inventory clearance.
Data-Sources
https://www.screener.in/company/544221/