Shree Vishnu Shankar Mills Unlisted Shares
About Shree Vishnu Shankar Mills Unlisted Shares
Shree Vishnu Shankar Mills Limited, part of the Ramco Group, is a prominent player in the textile industry, particularly in the production of high-quality yarn. Established in 1981, the company is known for its advanced manufacturing processes and rigorous quality control standards. Shree Vishnu Shankar Mills offers a broad portfolio of yarns, including Ring Yarn, Compact Yarn, OE Yarn, and Gassed Yarn, among others. These yarns are in high demand in international markets, renowned for their superior tensile strength and consistent quality.
The company’s state-of-the-art facilities, equipped with Uster Machines for testing and quality control, enable it to meet international export standards. This focus on quality, combined with a competitive pricing strategy, has earned Shree Vishnu Shankar Mills a strong reputation both domestically and globally.
2. Business Divisions
Shree Vishnu Shankar Mills operates across various segments within the textile industry, with a particular emphasis on the production of high-quality yarns. The company’s business divisions include:
- Yarn Production: Shree Vishnu Shankar Mills manufactures various types of yarns, including:
- Ring Yarn (Ne): 30/1 to 80/1
- Compact Yarn (Ne): 30/1 to 120/1
- TFO Doubled Yarn (Ne): 40/2 to 80/2
- OE Yarn (Ne): 10s to 20s
- Gassed Yarn (Ne): 38/2 to 100/2
- Slub Yarn (Ne): 20 to 40
These yarns serve as essential materials for industries such as textiles, apparel, and home furnishings, catering to both domestic and international markets.
- Export Markets: A significant portion of Shree Vishnu Shankar Mills’ revenue is derived from exports. The company has successfully expanded its footprint in key international markets, including Turkey, Portugal, Italy, Belgium, Netherlands, Canada, and the United States, where its yarn is recognized for its superior quality.
- Textile Solutions for Global Markets: The company’s extensive experience and commitment to innovation in textile manufacturing have enabled it to offer high-quality, cost-effective yarn solutions, helping it remain competitive in the rapidly evolving global textile market.
3. Financial Highlights
Here are the key financial highlights of Shree Vishnu Shankar Mills Unlisted Shares:
- Revenue Decline in FY2024: In FY2024, Shree Vishnu Shankar Mills reported revenue of ₹251.5 crore, down from ₹304.68 crore in FY2023. This decrease in revenue was partly due to challenges in the textile market, including rising raw material costs and competitive pricing pressures.
- Earnings Pressure: The company experienced a decline in profitability, with a PAT of ₹-21.6 crore in FY2024, compared to ₹-7.43 crore in FY2023. This negative profitability is a concern for investors, highlighting challenges in managing costs and maintaining margins.
- Gross Margin Decline: Gross margins fell to 35.47% in FY2024, down from 45.62% in FY2022. This reduction in gross margins reflects the impact of increasing raw material costs and price competition within the textile industry.
- Operating Losses: Shree Vishnu Shankar Mills posted an EBITDA loss of ₹-1.7 crore in FY2024, a sharp decline from ₹19.43 crore in FY2023. This operating loss is indicative of the pressures on the company’s cost structure, requiring strategic adjustments.
- Debt and Liabilities: The company’s total liabilities amounted to ₹483 crore in FY2024, with significant borrowings of ₹267 crore. The high debt levels pose a risk to the company, especially given the recent downturn in profits and margins.
Pros
- High-Quality Production: The company ensures superior yarn quality with Uster Machines, maintaining international standards and a competitive edge in the textile market.
- Export Success: Export sales surged from ₹42.44 Cr in FY21 to ₹102.93 Cr in FY22, showcasing strong international market demand.
- Robust Growth in Production & Sales: Achieved 39% production growth and 61% sales growth in FY22, reflecting strong operations and increasing market demand.
Cons
- Volatility in Raw Material Costs: Fluctuating cotton prices impact profit margins, increasing costs and affecting Shree Vishnu Shankar Mills’ profitability.
- High Debt-to-Equity Ratio: A 1.39 debt-to-equity ratio indicates reliance on external financing, raising financial risk during sales downturns.
- Profitability Pressure: Gross margin decline from 45.62% (FY22) to 35.47% (FY24) suggests rising costs and competitive market pressures.
Key Details
| Share Name | Particulars |
|---|---|
| Shree Vishnu Shankar Mills Unlisted | ₹425.00 |
| Shares Price | Per Equity Share |
| Lot Size | 50 Shares |
| 52 Week High | ₹525 |
| 52 Week Low | ₹425 |
| Depository | NSDL & CDSL |
| PAN Number | AACCS0536Q |
| ISIN Number | INE365Z01016 |
| CIN | U17301TN1981PLC008677 |
| RTA | M/s. Cameo Corporate Services |
| Fundamentals | Value |
|---|---|
| Market Cap (in ₹ Cr.) | 63.75 |
| P/E Ratio | -2.93 |
| P/B Ratio | 0.31 |
| Debt to Equity | 1.39 |
| ROE (%) | -11% |
| Book Value (₹) | 1349.93 |
| EPS (₹) | -144.97 |
| Face Value (₹) | 10 |
| Total Shares | 15,00,000 |
Financials
| P&L Statement | 2024 | 2023 | 2022 |
|---|---|---|---|
| Revenue | 251.50 | 304.68 | 291.96 |
| Cost of Material Consumed | 162.30 | 187.62 | 158.78 |
| Gross Margins (%) | 35.47 | 38.42 | 45.62 |
| Change in Inventory | 5.30 | 1.18 | -21.72 |
| Employee Benefit Expenses | 30.40 | 30.14 | 23.47 |
| Other Expenses | 55.20 | 66.31 | 79.36 |
| EBITDA | -1.70 | 19.43 | 52.07 |
| OPM (%) | -0.68 | 6.38 | 17.83 |
| Other Income | 8.40 | 5.16 | 3.64 |
| Finance Cost | 23.20 | 19.97 | 14.13 |
| D&A | 14.30 | 16.25 | 12.50 |
| EBIT | -16.00 | 3.18 | 39.57 |
| EBIT Margins (%) | -6.36 | 1.04 | 13.55 |
| PBT | -30.80 | -10.23 | 27.99 |
| PBT Margins (%) | -12.25 | -3.36 | 9.59 |
| Tax | -9.20 | -2.80 | 6.48 |
| PAT | -21.60 | -7.43 | 21.51 |
| NPM (%) | -8.59 | -2.44 | 7.37 |
| EPS (₹) | -144.97 | -49.87 | 144.36 |
| Financial Ratios | FY24 | FY23 | FY22 |
|---|---|---|---|
| Operating Margin | -5% | 3% | 15% |
| Net Profit Margin | -9% | -1% | 11% |
| Return on Equity (ROE) | -11% | -1% | 15% |
| Debt-Equity | 1.39 | 1.28 | 1.32 |
| Current Ratio | 0.75 | 0.95 | 1.12 |
| Dividend Payout | 0% | 0% | 0% |
| Company | Sri Vishnu Shankar Mill Ltd | Surat Textile Mills Ltd | Loyal Textile Mills Ltd |
|---|---|---|---|
| Market Cap (₹ Crores) | 55 | 195 | 253 |
| Profitability Margin (%) | -8.54% | 15.00% | -4.25% |
| ROCE (%) | -4.14% | 6.71% | 0.15% |
| ROE (%) | -11.24% | 4.52% | -12.00% |
| D/E Ratio | 1.39 | 0.01 | 1.94 |
| P/E Ratio | -2.53 | 16.3 | — |
| P/B Ratio | 0.28 | 0.95 | 0.78 |
| Book Value per Share (₹) | 1,282.94 | 9.24 | 667 |
| Assets | 2024 | 2023 | 2022 |
|---|---|---|---|
| Fixed Assets | 171.00 | 155.26 | 145.99 |
| CWIP | 1.30 | 3.84 | 4.53 |
| Investments | 1.80 | 158.06 | 162.58 |
| Trade Receivables | 40.00 | 26.44 | 54.30 |
| Inventory | 64.00 | 125.46 | 99.22 |
| Other Assets | 204.90 | 34.46 | 53.97 |
| Total Assets | 483.00 | 503.52 | 520.59 |
| Liabilities | 2024 | 2023 | 2022 |
|---|---|---|---|
| Share Capital | 1.49 | 1.49 | 1.49 |
| FV | 10 | 10 | 10 |
| Reserves | 191.00 | 211.70 | 215.17 |
| Borrowings | 267.00 | 272.78 | 286.52 |
| Trade Payables | 11.00 | 5.20 | 1.87 |
| Other Liabilities | 12.51 | 12.35 | 15.54 |
| Total Liabilities | 483.00 | 503.52 | 520.59 |
Promoters or Management
Frequently Asked Questions
Sale of Yarn contributes 97.6% of Sri Vishnu Shankar mills’ revenue. Geographically speaking, 76% revenue is from India whereas 24% revenue comes from Export.
