Swaraj Suiting Limited SME IPO. Engaged in 1. Manufacturing of Grey Fabric. 2. Weaving on Job Work basis 3. Trading of Finished Fabric, Grey Fabric & Yarn. Entering Denim Fabric at Madhya Pradesh unit, which is advance stage & expected commerical production Mar'22-Apr'22 period.
Balance Sheet Liabilities & Assets and Cash Flow Statement. Huge amount of debt in Balance Sheet. Significant WC intensive business.
Business.
Revenue break up.
Capacity & Utilization. New facility will bring additional capacity.
Management Compensation looks ok. Significant amount of debt & further debt will be added. There's enough room for growth in existing business & new capacity being added. Valuation is ok but listed business available. Operating Margin Impact seen. Issue of client concentration.
PLI will help. Related Party Transaction should be watched. Couldn't tally some financial statement items with not enough details. Operating margin impact in Sep'21 already, cost pressures will be there with further debt added making it a risky bet. Overall, I am NOT applying.
Converted the P&L numbers in Crores for better readability. Apologies forgot in the first tweet.
Loading suggestions...