Prakash Woollen & Synthetic Mills Limited
Prakash Woollen & Synthetic Mills Limited is a textile company. It makes synthetic products, like mink blankets. The company started in 1979. Over time it has built a presence in India and in export markets.
Industry
The textile industry in India is huge. It adds about 2.3% to the country's GDP. It also makes up 13% of output and 12% of exports. The global textile market is worth over $700 billion. It is expected to grow as people want clothes and home textiles.This is because the blanket and home furnishing segment has a lot of demand. The blanket and home furnishing segment also has a lot of export opportunities for Prakash Woollen & Synthetic Mills.
This analysis will look at the company's operational performance. It will also assess the company's strengths, risks and future outlook.
Company Overview
Prakash Woollen & Synthetic Mills Limited was established
in 1979. Its head office is in Uttar Pradesh, India. The company has a manufacturing facility in Amroha. It has been making textiles for decades.
The company makes mink blankets and related textile products. It earns money by selling finished goods and getting orders from clients in India and abroad.
Its main products are:
* Mink blankets
* Woollen and synthetic textile products
The company sells to both export markets. However its export sales seem limited.
It faces competition from players and small manufacturers especially in price-sensitive segments.
Promoter / Founder
The company has experienced promoters and directors. Mr. Daya Kishan Gupta is the Managing Director. The board also has members like Mr. Vijay Kumar Gupta, who's the CFO.
Promoters like Mr. Ashish Gupta and Mr. Kapil Gupta have been with the company since 2004. They have helped with finance and sales.
Mr. Ashish Gupta knows about finance and accounting. Mr. Kapil Gupta leads sales and market expansion.
The leadership team has experience in manufacturing, finance and sales. This helps with decisions and long-term sustainability.
Financial Statement
Profit and Loss
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 103.68 | 102.13 | 105.17 |
Gross Profit | 3.67 | 12.40 | 13.87 |
EBITDA | 1.15 | 10.52 | 11.60 |
Depreciation | 4.07 | 5.75 | 5.13 |
Interest | 2.24 | 4.59 | 5.02 |
Earnings Before Tax (EBT) | -5.16 | 0.18 | 1.45 |
Net Profit | -5.04 | 0.95 | 1.26 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 103.68 | 102.13 | 105.17 |
Gross Profit | 3.67 | 12.40 | 13.87 |
EBITDA | 1.15 | 10.52 | 11.60 |
Depreciation | 4.07 | 5.75 | 5.13 |
Interest | 2.24 | 4.59 | 5.02 |
Earnings Before Tax (EBT) | -5.16 | 0.18 | 1.45 |
Net Profit | -5.04 | 0.95 | 1.26 |
Cash Flow Statement
Particulars | Mar-23 | Mar-24 | Mar-25 |
Operating Cash Flow | 1843 | 973 | 2931 |
Investing Cash Flow | 433 | 915 | -1507 |
Financing Cash Flow | -2254 | -2244 | -1034 |
Net Cash Flow | 22 | -356 | 390 |
Ratio Analysis
Ratio | Mar-23 | Mar-24 | Mar-25 |
Net Profit Margin % | -4.86% | 0.93% | 1.20% |
Gross Profit Margin % | 3.54% | 12.14% | 13.19% |
Current Ratio | 1.64 | 1.73 | 1.67 |
Debt to Equity | 1.07 | 1.09 | 0.86 |
Asset Turnover | 0.87 | 0.80 | 0.95 |
Key Insights & Interpretation
Strengths
The company has been operating since 1979. This shows stability.
The company has manufacturing infrastructure and industry experience.
It has made profits in years.
The promoters are involved, which ensures continuity and strategic direction.
Weaknesses
The company operates in a low-margin textile segment.
It is smaller compared to textile companies.
It depends on the demand for blankets.
Its export contribution is low.
Risk Factors
Raw material prices can fluctuate.
There is competition from domestic and international players.
Demand can vary due to weather conditions.
There are compliance risks.
Future Outlook
The company's future outlook is moderately positive. Demand for home textiles and blankets is expected to grow in export markets.
The company can benefit from:
* Expanding into markets
* Diversifying products
* Improving cost efficiency
The management has indicated efforts to increase revenue and improve operational efficiency. This may improve profitability.
Conclusion
Prakash Woollen & Synthetic Mills Limited is a player in the textile industry. It has operations and promoter-driven management.
The company shows financial performance and profitability. However it faces challenges like margins, competition and industry cyclicality.
From an investment perspective the company can be seen as a risk moderate-return investment. May not offer high growth potential.