1. INTRODUCTION

• Brief Introduction of the company  

Previously known as Shekhawati Poly-Yarn Limited, Shekhawati Industries Limited is a publicly traded corporation with close ties to India's textile manufacturing industry. For over thirty years, it has been a respectable producer of various yarns and fabrics, and it recently changed its name to better reflect its growing enterprise. It has made a name for itself in the textile industry throughout the years by focusing on high-quality production and expanding its business activities.

• 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 Shekhawati Industries 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’ profit and loss statements, balance sheets and key financial ratios. 

2. COMPANY OVERVIEW 

• Background and History 

 In 1990, Shekhawati Industries Limited was established. Shekhawati Poly-Yarn Limited became Shekhawati Industries Limited on July 23, 2024. It relocated its registered office from Silvassa to Mumbai, Maharashtra, in November 2024. The company has steadily expanded and is currently looking into opportunities outside of the textile sector, like real estate projects. The company has steadily expanded and is currently looking into opportunities outside of the textile sector, like real estate projects.

• Business model

The company follow Trading and Manufacturing Model-

1) Production of Yarn and fabric textile products.

2) Providing textile and job work consultancy to help clients maximize production.

3) Expansion in property development and business.

• Key Product and Services 

1) Textile Yarn product

2) Twisting Yarn

3) Knitted Fabrics

4) Real Estate Construction and Project Development

• Market Positioning 

The company focuses on cost-effective production and growing business divisions in a competitive textile market. In order to improve its market position, this mid-sized player is attempting to diversify. The business offers competitive cost efficiency by utilizing deep domain understanding throughout the textile value chain. By including real estate as a long-term growth vertical, it is now establishing itself as a multi-sector player.

3. PROMOTERS / FOUNDER

4. FINANCIAL ANALYSIS

• Income statement analysis                                                                   (In Lakhs)                                                                                                                                                                                                                                                 

Key observations of Income Statement:

1)  Revenue from operation has decreased in FY25 by 21% as compared to FY24.

2)  Net profit is very less as compared to FY24 because exceptional gain in FY24 was from debt settlement around 14,275 lakhs.

• Balance sheet analysis 

                                                                                                                         (In Lakhs)

End of the FY25 –

1) Equity share capital – There are stable equity share holders.  

2) Current assets – Current assets decreased in FY25. i.e. 3010 lakhs.

3) Current Liability – Total current liability also decreased in FY25.

• Cash Flow Statement 

                                                                                                                             (In Lakhs)

            Noted –

1)  Cash from operating and financing activity are negative because of expansion in new business.

2) Investing activity looks positive but as compared to FY24 is very less.

• Key financial Ratio 

• Profitability Ratio  

Net Profit Margin = 0.10%

•  Liquidity Ratio  

  Current Ratio = 1.24

•  Leverage Ratio   

Debt / Equity Ratio = 0.03

• Efficiency Ratios

Earnings per Share = 1.82

• Year on year comparison ( 3 years revenue)

5. KEY INSIGHTS AND INTERPRETATION 

• Strengths 

1. Established presence in textile industry 

2. Diversification into real estate sector

• Weakness 

1. Heavily reliant on one or two big customers, over 80% revenue gets from them. 

2. Investment in new business projects leads to negative operating cash flow.

• Risk factor 

1. Intense competition in textile industry 

2. Financial risk due to expansion into new sectors

• Future Outlook 

If the company effectively manages its diversification plan and increases operational efficiency, growth is anticipated. Future revenue sources could be generated by real estate expansion. The real estate project in Lonavala, Maharashtra, which is anticipated to start generating income in the next fiscal year, gives the company hope. It seeks to strike a balance between long-term real estate growth and short-term textile stability.

6. CONCLUSION 

Final evaluation of financial condition

Shekhawati Industries Ltd. has room to grow and demonstrates a moderate level of financial strength. However, managerial choices and market conditions affect how well it performs. After paying off considerable debts the year before, the company's financial situation has considerably stabilized. Normalization has reduced current profits and revenues, but the balance sheet is still solid with little leverage.

Investment / Performance Perspective

Shekhawati Industries is going through a period of change. In order to achieve continuous growth and make up for the current fall in core textile revenues, investors should keep an eye on the real estate division's progress. One could classify the corporation as a somewhat risky investment. Before selecting a choice, investors should keep a close eye on its financial performance and diversification outcomes.

Sources 

https://www.shekhawatiind.com 

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