Neelam Linens and Garments (India) Limited
Neelam Linens and Garments (India) Limited is a manufacturer and retailer of quality bedding and garments. This company was established in 2010. It was later listed on the NSE SME platform in November 2024. Neelam Linens and Garments (India) Limited is specialized in supplying quality bedding products worldwide.
Industry
The textile industry in India is a very critical industry. It helps in India's economy by contributing around 2.3% to India's GDP. The global textile market accounts for sales worth over $700bn. The demand for quality home textiles and bedding is increasing. The home textile segment, bedding is one of the fastest growing segments. This has to do with spending power and changing lifestyles of the people.
The subject of this study is Neelam Linens and Garments (India) Limited, a multi-million corporation, which is undergoing a financial, business model, management quality and future planning analysis. This will be an understanding of Neelam Linens and Garments (India) Limited as an investment.
Company Overview
Neelam Linens and Garments (India) Limited was formed as a company in 2010. Later, it became a company in 2022 to raise funds and be listed on the stock exchange. It raised around ₹1,300 lakh through its public offering and got listed on the NSE SME platform in 2024.
Its business model is simple. The company's business model is simple. The theme for the company’s products include high thread count bed sheets, and premium bedding products. Neelam Linens and Garments (India) Limited sells its products to such companies as IKEA, Macy’s Walmart and Bombay Dyeing.
However, the case is Neelam Linens and Garments (India) Limited which is a firm in the textile industry but with an emphasis on quality, not quantity. The organization produces goods in a market environment, but delivers superior goods to competitors (Linens and Garments, n.d.).
Promoter / Founder
Mr. Bhavin Kantilal Jethwa is the Managing Director of Neelam Linens and Garments (India) Limited. Such experience of Mr. There are professionals and independent directors that oversee the adherence to rules and regulations.
The leadership team in Neelam Linens and garments (India) limited includes Mr. The promoters of Neelam Linens and Garments (India) Limited have been successful in expanding the company’s client base, listing the company in the stock market and improving its operations.
The promoters of Neelam Linens and Garments (India) Limited concentrate on producing quality products and exporting them to other countries. This has helped the company to build a brand image.
Financial Statement
Profit and Loss
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 103.56 | 102.34 | 110.43 |
Gross Profit | 13.48 | 12.90 | 16.03 |
EBITDA | 8.37 | 10.21 | 11.53 |
Depreciation | 0.61 | 1.61 | 1.64 |
Interest | 4.46 | 5.44 | 6.16 |
Earnings Before Tax (EBT) | 3.30 | 3.16 | 3.73 |
Net Profit | 2.38 | 2.45 | 2.68 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Equity Share Capital | 7.40 | 14.80 | 20.22 |
Reserves | 13.62 | 8.68 | 18.94 |
Equity (Total) | 21.02 | 23.48 | 39.16 |
Borrowings | 65.34 | 69.65 | 67.10 |
Other Liabilities (CL) | 13.32 | 28.03 | 30.60 |
Total Liabilities | 99.68 | 121.16 | 136.86 |
Fixed Assets | 5.54 | 3.95 | 4.26 |
Current Assets | 68.52 | 89.58 | 102.54 |
Total Assets | 99.68 | 121.16 | 136.86 |
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 % | 2.30% | 2.39% | 2.43% |
Gross Profit Margin % | 13.02% | 12.61% | 14.52% |
Current Ratio | 5.14 | 3.20 | 3.35 |
Debt to Equity | 3.11 | 2.97 | 1.71 |
Asset Turnover | 1.04 | 0.84 | 0.81 |
Key Insights & Interpretation
Strengths
Neelam Linens and Garments (India) Limited has a client base that includes IKEA, Walmart, and Macy’s.
The company strategy is to create quality products that offer maximum margins.
Neelam Linens and Garments (India) Limited's revenue and profitability are on the rise. Financially too, the revenue of Neelam Linens and Garments (India) Limited stands at ₹11,042 lakh for FY25.
The company’s initial public offering was a success. Its initial public offering was successful, giving it the money it needed to grow.
Neelam Linens and Garments (India) Limited's business model which is export oriented is a strength.
Weaknesses
However, the company relies on few clients.
Neelam Linens and Garments (India) Limited is exposed to demand fluctuations.
It is a small company. Does not have an advantage of economies of scale.
There is fierce competition in the textile export market.
Risk Factors
Prices of material inputs such as cotton and yarn are very volatile.
The fluctuations in currencies affect the exports of the company.
Neelam Linens and Garments (India) Limited relies on markets.
There are many regulations with which the company has to comply.
Outlook for the Future
The outlook of Neelam Linens and Garments (India) Limited. The company has the plan to expand retail markets especially in the USA.
It also wants to strengthen its e-commerce presence through platforms like Amazon. Neelam Linens and Garments (India) Limited will use the money it raised from its public offering to boost its production capacity.
However, the demand for quality bedding products is expected to grow, a factor that can benefit Neelam Linens and Garments (India) Limited. Thus, the demand for quality bedding products is expected to grow, which Neelam Linens and Garments (India) Limited can benefit from.
Conclusion
Neelam Linens and Garments (India) Limited is a growing company manufacturing quality bedding products. The company has shown growth in revenue and profitability on account of its strong client base and strategic plans for expansion.
However Neelam Linens and Garments (India) Limited faces some risks like depending on a big client and fluctuations in global demand.. The company’s strong position in the premium segment and its export oriented business provide growth opportunities to the company.
From an investment perspective Neelam Linens and Garments (India) Limited can be considered to-high growth stock with certain risks. It is suitable for investors, who want to invest in the textile export sector.