1. INTRODUCTION

• Brief Introduction of the company  

In India, Cedaar Textile Limited is a rapidly expanding textile business. Yarn and textile products, such as cotton, polyester, and mixed yarns, are its primary business. In addition to dealing in foreign markets, the company distributes its goods to clothing makers. The company manufactures premium yarns for both Indian and foreign fashion labels, including raw white, melange, and dyed varieties. The company is a newly launched company but it is growing quickly in the current and short period of time.

• Industry Overview  

The Indian textile and apparel industry is significant at global as well as at country level. This industry generates employment and improves the country's GDP. The industry has a very good future ahead, because of continuous changes in market demand and market trends. But the industry also faces many challenges related to raw material prices, global competition and consumer choices. 

• Purpose of the Analysis 

This research and analysis will help to understand the financial condition of Cedaar Textile Ltd. also this analysis will help to know more about the company and about the textile industry in the country. The analysis will cover all companies’ Balance sheet, Profit and loss Account and cash flow. 

2. COMPANY OVERVIEW 

• Background and History 

The Cedaar textile ltd. is started their operation on 28 September, 2020. It was once a private business before going public. The business, which is based in Bangalore, manufactures and trades textiles. A significant milestone was reached in 2024–2025 when the business successfully launched its SME IPO in June 2025, which was approximately twelve times oversubscribed, and changed from a private to a public organization.

• Business model

The company follow Trading and Manufacturing Model-

1) Manufacturing textile and yarn products.

2) Buying and selling goods in the domestic market.

3) Import and export of textile material to satisfy global customers.

• Key Product and Services 

1) Melange Yarn

2) Dyed Yarn

3) Suitable Fabrics

4) Global Trading 

• Market Positioning 

The company operates in both domestic and international markets, the business is positioned as a mid-level textile maker and trader. Cedar markets itself as a premium, environmentally friendly producer that caters to high-end clients that create clothing for well-known international fashion brands.

3. PROMOTERS / FOUNDER

4. FINANCIAL ANALYSIS

• Income statement analysis  

                                                                                                                                            (In lakhs)

               Key Observations of Income Statement:

               1) Revenue from sales has increased by 9.73% in FY25 as compared to last FY.

               2) PBT has increased by 6% but net profit is not increased that much because of higher

                   Tax in FY25

• Balance sheet analysis 

                                                                                                                          (In lakhs)

End of the FY25 –

1) Equity share capital – Increased to 953 lakhs because of conversion of director loan to equity. 

2) Current assets – Current assets have increased in FY25 because of high inventory.

3) Current Liability – Current liability also increased because of increased short term borrowing.

• Cash Flow Statement 

                                                                                                                                      (In lakhs)

            Noted -

             1) Cash from operating activity increased more than 2x it shows better working

                  Capital management and higher operating profit.

             2) Negative Financial and investing activity shows repayment in loan. 

• Key financial Ratio 

• Profitability Ratio  

Net Profit Margin = 6.39%

•  Liquidity Ratio  

  Current Ratio = 1.23

•  Leverage Ratio   

Debt / Equity Ratio = 5.79

• Efficiency Ratios

Earnings per Share = Rs.14.23

• Year on year comparison ( 3 years revenue)

5. KEY INSIGHTS AND INTERPRETATION 

• Strengths 

1) Strong increase in operating cash flow 

2) Growth in total assets and business size 

3) No cash losses reported

• Weakness 

1) Profit not increasing significantly 

2) High dependency on borrowed funds

• Risk factor 

1)  Fluctuation in raw material prices in the textile industry.

2) Facing high competition from big textile companies.

• Future Outlook 

The company is doing well currently. They are financially in a stable position. The company and textile industry has a great future ahead because demand for textile products is increasing day by day. Also the company expanded their operation so they also entered into other business. Increased demand all over the globe for textile products because of that exporting opportunities for Cedaar textile ltd. are rising.

6. CONCLUSION 

Final evaluation of financial condition 

Cedaar Textile Limited is a growing company with stable financial performance. It shows good improvement in operations and cash flow, but needs to control costs and reduce liabilities. The successful IPO and listing on the NSE Emerge platform provide a vital capital cushion for expansion. While leverage has improved, the company must address internal control discrepancies noted by auditors regarding bank reporting

Investment / Performance Perceptive 

 From an investor 's perspective, the company is growing with stable financial performance. Where the company is suitable for medium to long-term investment. But because of volatility in industry, investors will carefully inspect high debt and profitability before investment. 

Sources

https://cedaartextile.com/ 

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