1. INTRODUCTION

• Brief Introduction of the company  

Jet Knitwear’s Ltd opened in 1969 and developed to be one of the leading manufacturers of good quality cotton hosiery and knitted under garments. It is an MSME which is listed on the NSE EMERGE platform and it has a market share of 45-50 in its regions of operation mostly in Uttar Pradesh.

• Industry Overview  

The Indian textile and apparel industry is significant at global as well as at country level. This industry produces employment and economic growth in the country. This industry has a very great future because of increasing demand in textile and fashionable products. However, this industry faces many challenges like raw material price fluctuation, global competition, and change in demand. 

• Purpose of the Analysis 

This research and analysis will help to understand the financial condition of Jet Knitwear’s Ltd. Also this analysis will help to know more about the company and about the Textile industry. The analysis will cover all companies’ profit and loss statements, balance sheets and key financial ratios. 

2. COMPANY OVERVIEW 

• Background and History 

The Jet knitwear’s Ltd. started their operation in 1969 aiming to produce quality cotton hosiery. In 50 years of starting business the company built relations with 5000 retailers and was honoured by 11 National Awards. The company is listed in NSE with market share 45-50. The company excels in manufacturing and exporting in domestic and global markets.

• Business model

The company follow Trading-business model –

1. Manufacturing through in-house and job-work processes.
2. Distribution by wholesalers and retailer
3. Supply of textile products to satisfy customer demand.

• Key Product and Services 

1) Undergarments.

2) Casual Wears.

3) Socks and Hosiery Products.

• Market Positioning 

It identifies itself as a local market leader with a robust brand with the help of "JET" and "LYCOT". Being the sole MSME of its kind in its segment on the NSE EMERGE platform, it has to compete with national and international brands with the help of a strong retail infrastructure.

3. PROMOTERS / FOUNDER

4. FINANCIAL ANALYSIS

• Income statement analysis              

                                                                                                                                  (In Cr.)

Key Observations of Income Statement:

1) Revenue from operations in FY25 has declined 14%.

2) Net profit has declined FY25 by 36%.

• Balance sheet analysis 

                                                                                                                              (In Cr.)

End of the FY25 –

1) Equity share capital – There is no change in equity share capital.

2) Current Assets – Current assets slightly increased in FY25 as compared to FY24.

3) Current Liability- Current liability also changed in FY25 from 14.81 Cr, to 16.56 Cr.

• Cash Flow Statement 

                                                                                                                                 (In Cr.)

            Note – 

             1) Cash from operating activity is in positive but has decreased as compared to FY24.

 2) Investing and Financing activity are seen negative which shows company has

     Re-paid loan and outstanding expenditure

• Key financial Ratio 

• Profitability Ratio  

  ROE - Net profit / shareholder equity *100 = 1.52%

•  Liquidity Ratio  

  Current Ratio – current assets / current liability = 2.30

•  Leverage Ratio   

  Debt to Equity Ratio – Total Debt / Shareholder equity = 0.7 

• Efficiency Ratio

  Net Profit Ratio – NPAT / Net Sale = 1.22%

• Year on year comparison ( 3 years revenue)

5. KEY INSIGHTS AND INTERPRETATION 

• Strengths

1) The brand is 36 years old, it has a good brand image in the market.

2) Build relationships with more than 5000 retailers with good distributors.

3) The company has got many awards for quality in manufacturing textile products.

• Weakness

1) Net profit margin has declined by 26%. 

2) The company has high trade receivables.

• Risk factor

1) Competition from global brands of fashion in the market.

2) Cotton and power prices fluctuate directly on the viability of production.

• Future Outlook 

 The Company will increase its presence regionally outside of Uttar Pradesh and gradually diversify the product line into casual wear (jackets, hoodies) in order to have the broadest market coverage.

6. CONCLUSION 

Final evaluation of financial condition 

The financial status of the Company is not in crisis (Current Ratio 2.30), however, the efficiency of its operations is being challenged. The inventory and trade receivables are abnormally high which means that there may be bottlenecks in terms of cash movements and recovery.

Investment / Performance Perceptive 

Jet Knitwear’s is exposed to a great deal of headwinds in the form of deceleration of the textile industry, and high inflation. Although the solid brand name offers it a buffer, investors need to keep an eye on how the Company handles its receivable turnover and successfully expand its new product lines to revive its revenue growth.

Sources

https://jetlycot.com/ 

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