To Analyse Financial Performance of Ceenik Exports (India) Ltd.
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Introduction
Ceenik Exports (India) Limited operates out of Mumbai, India, as a publicly traded firm. Though focused on making clothes — jeans, T-shirts, and similar garments — it also earns income by leasing buildings. Garment exports in India operate in a crowded field with many players. Yet space rental brings predictable cash flow from real estate holdings. Steady income often beats flashy growth when markets shift quickly.
Looking at how the company handles money shows more than just numbers — it reveals stability. Strengths stand out when results beat expectations, while flaws appear in areas that are slow to adapt. Risks emerge where change hits hardest. What lies ahead depends on navigating these pieces without overreaching.
Ceenik Exports (India) Limited – www.ceenikexports.in
Company Overview
Background and History
Back in 1982, Nanikdas Hingorani started the business with his son. Over time, what began with exporting clothes slowly changed direction. By 1995, the business had transformed into a publicly traded company, and its shares were listed on the BSE under the number 531119. Alongside garments, the company introduced property rentals to diversify income streams.
Today, very few clothes are exported. Earnings now come more from renting spaces than from garment manufacturing. Garment operations have slowed significantly. Rental income now fills most of the revenue gap, while profits also come from quiet investments elsewhere. Many of the old sewing floors remain inactive, as capital moves toward areas offering better returns.
Among the products historically produced were knits, dyed cloth, and printed materials. Denim trousers were common, along with tops and outerwear pieces. Men’s clothing formed a steady part of output.
The company is a small firm listed on the BSE with a market value of roughly ₹100–110 crore. Its presence in apparel is currently weak, with limited sales. Instead, real estate involvement provides a steadier financial base. While the company remains small in size, property holdings act as ballast when garment revenues decline.
Promoter / Founder Introduction
Leadership
Narain Nanikdas Hingorani serves as the Chairman and Managing Director. The company traces its origins to its founder, Nanikdas Hingorani. Family involvement remains strong, as Kavita Narain Hingorani also serves on the board. Leadership combines long-standing family roots with multigenerational participation.
Professional Background
Narain Hingorani began his journey in the garment business at an early stage. Growing up around fabric trading and textile markets, his family had been involved in garments since the 1980s. Over the decades, he continued building on that foundation through the 1990s and beyond.
Role in Company Growth
The founders initially expanded the company’s garment export operations until it became listed on the BSE. Later, they introduced property rental income to stabilise revenue streams. Recently, the company has been exploring investment-focused opportunities, including the possibility of entering the NBFC space in the future.
Financial Statement Analysis
(Year-on-year comparison focusing on FY 2023-24 and FY 2024-25, as earlier years recorded near-zero revenue.)
Income Statement Analysis
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Revenue from Operations: Nil (no sales from garments/operations)
- FY 2023-24: ₹0 lakhs
- FY 2024-25: ₹0 lakhs
Trend: No growth; core business remains inactive.
Other Income (Property, Investments, etc.)
- FY 2023-24: ₹542.08 lakhs
- FY 2024-25: ₹1,602.28 lakhs
Growth: +196% (strong increase)
Total Income
- FY 2023-24: ₹542.08 lakhs
- FY 2024-25: ₹1,602.28 lakhs
Total Expenses
- FY 2023-24: ₹457.28 lakhs
- FY 2024-25: ₹2,100.62 lakhs
Profit/(Loss) after Tax (Net Profit)
- FY 2023-24: +₹57.22 lakhs
- FY 2024-25: -₹501.49 lakhs (approximately -₹5.01 Cr)
EPS (₹10 face value)
- FY 2023-24: +₹1.71
- FY 2024-25: -₹12.47
Trend: A small profit in FY2024 turned into a heavy loss in FY2025 due to rising expenses despite stronger other income. Operational revenue has not revived.
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Income Statement Summary
Revenue from Operations | 0 | 0 | No change |
Other Income | 1,602.28 | 542.08 | +196% |
Total Income | 1,602.28 | 542.08 | +196% |
Total Expenses | 2,100.62 | 457.28 | +360% |
Profit/(Loss) after Tax | (501.49) | 57.22 | Profit to heavy loss |
EPS (₹) | (12.47) | 1.71 | Negative |
Balance Sheet Analysis
(Figures in ₹ Crores)
Total Assets
Mar 2025: ₹61.14 Cr
Mar 2024: ₹44.25 Cr
Total Liabilities
Mar 2025: ₹40.35 Cr (significant increase)
Equity / Shareholders' Funds
Mar 2025: ₹20.79 Cr
Mar 2024: ₹9.72 Cr
Trend: Assets are growing, likely due to investments or property expansion, but liabilities have also increased substantially.
Cash Flow Statement Analysis
Ceenik Exports (India) Ltd.'s cash flow for FY2023–FY2025 shows a sharp deterioration in core operations, partially offset by one-time inflows.
Key Trends (FY23 → FY24 → FY25)
Operating Cash Flow (OCF)
+0.90 → -1.64 → -22.61
Massive outflow (~-1277% in FY25)
Investing Cash Flow
+1.86 → +2.79 → +17.90
Large increase, likely from asset sales such as property or shares
Financing Cash Flow
-3.10 → -1.11 → +5.18
Shift toward borrowing
Net Cash Change
-0.34 → +0.04 → +0.47
Slight increase in cash balance, but not from operating activities
Free Cash Flow (approx. OCF – CapEx)
+0.70 → -1.65 → -22.62
Deeply negative, indicating unsustainable cash burn
Deep Investor Takeaways
The company’s rental and legacy garment operations are losing money rapidly in FY2025. Cash outflow has intensified due to rising working capital requirements and continuing losses. Operating cash flow dropped to minus ₹22.61 crore, which is alarming relative to the company’s income levels.
At the same time, cash balances improved slightly, mainly due to investment gains and borrowings. These funds may be preparing the company for future strategic moves, possibly including entry into the NBFC sector or further asset restructuring.
However, a major concern is that cash inflows are coming mainly from asset sales rather than core operations. Such a strategy cannot continue indefinitely. Debt levels are increasing while losses persist, leading to a return on equity of roughly -104%.
A possible turnaround may depend on a strategic shift such as NBFC licensing or restructuring investments. Investors should watch for improvements in operating cash flow by early FY26 before considering exposure. At present, the situation remains highly risky.
Key Financial Ratios
Profitability
ROE remains negative (around -104%).
Liquidity / Leverage
High borrowings and weak interest coverage.
Efficiency
Low efficiency due to zero operational revenue.
Book Value
Approximately ₹40–50 per share.
Trend: Profitability has deteriorated consistently over recent years.
Key Insights & Interpretation
Strengths
Two-thirds of ownership remains strongly promoter-backed. Growth potential exists through real estate holdings and investment income. The company also benefits from decades of industry experience.
Weaknesses
There is no operational revenue currently. Losses continue year after year. Costs remain high while borrowings keep increasing.
Risk Factors
Prolonged inactivity in core operations may weaken the company further. High borrowing adds financial pressure over time. Small-cap companies are also more prone to price volatility.
Future Outlook
Property income provides some financial stability, while the company may attempt to shift toward investment activities, possibly through NBFC operations. A real turnaround will depend on either reviving garment operations or generating sustainable investment returns.
Conclusion
Final Evaluation of Financial Health
At present, Ceenik Exports is in weak financial condition. In FY2025, not a single rupee came from its core operations. Instead, approximately ₹16 crore came from other income sources, such as investments or asset-related gains. Losses reached around ₹5 crore because expenses remained near ₹21 crore.
Profitability declined sharply compared to the previous year, with returns on equity dropping to around -104% and return on capital close to -41%.
Although total assets have increased, borrowings remain heavy, with debt estimated near ₹26 crore. This creates a debt-to-equity ratio of roughly 159% in certain measures. Rising interest costs and declining operating cash flows further weaken the financial position.
Investment Perspective
From an investor’s perspective, Ceenik Exports currently appears unstable. Unless significant improvements occur — such as increased rental income, reduced expenses, or regulatory approval for NBFC operations — the future remains uncertain.
Potential risks include rising debt levels, continuing losses, and forced asset sales. Only investors with high risk tolerance should consider exposure, and even then they must closely monitor quarterly financial performance. Until operating cash flow improves and leverage declines, caution remains the prudent approach.
SOURCES:
- Screener.in: Company overview, ratios (e.g., ROE -104%, ROCE -41%, book value ~₹40–50, market cap ~₹95–113 Cr) – https://www.screener.in/company/531119/
- Moneycontrol.com: Announcements, financial notices, and ratios – https://www.moneycontrol.com/company-notices/ceenikexportsindia/notices/CEI
- BSE India: Corporate filings, including annual/quarterly results and reports – https://www.bseindia.com (search BSE code 531119)
- Yahoo Finance: Balance sheet and key statistics (e.g., total debt ~₹26 Cr, debt/equity ~159–187%) – https://finance.yahoo.com/quote/CEENIK.BO/key-statistics
- Trendlyne.com: Quarterly/annual financials and ratios – https://trendlyne.com/fundamentals/financials/3467/CEENIKEXPO/ceenik-exports-india-ltd