At a Glance
Active Clothing is an integrated apparel manufacturer supplying sweaters, jackets, T-shirts, joggers and babywear to retail giants like Adidas and PUMA. The company has grown PAT at 74% YoY, added ₹297 Cr revenue in FY25, and recently raised ₹7.5 Cr for India’s first smart knitting factory. Can this under-the-radar BSE stock become the next textile turnaround?
1. 🧵 Introduction – Tailor-Made for a Turnaround?
While the market was chasing Adani and FMCG darlings, Active Clothing quietly pulled off a 5x PAT growth in 2 years, partnered with top global brands, and built a track record of high-efficiency textile manufacturing.
Now they’re claiming ₹500 Cr revenue by FY28 with seamless 3D tech. From Ludhiana to the world?
2. 🪡 Business Model – WTF Do They Even Do?
👚 Product Lines:
- Flat-knit sweaters (core segment)
- Outerwear jackets
- Circular-knit T-shirts, joggers & sweatshirts
- Kidswear, babywear & women’s woven tops (recent expansion)
🏭 Capacity:
- 12L men’s garments
- 2.5L women’s
- 10L babywear pieces annually
🤝 Clients:
- Adidas (signed Oct ’24)
- PUMA (Feb ’25)
- Indian private labels & exports
🎯 USP: End-to-end production → design, manufacturing, quality control → delivery.
3. 💰 Financials – Profit, Margins, ROE, Growth
| Metric | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Revenue | ₹296 Cr | ₹212 Cr | 40% 🚀 |
| Net Profit | ₹8.45 Cr | ₹4.85 Cr | 74% 💣 |
| OPM | 9% | 10% | Flat |
| ROE | 11.5% | 9% | ↑ |
| EPS | ₹5.45 | ₹3.13 | ↑ |
🔁 Revenue CAGR (3Y): 37%
💸 PAT CAGR (3Y): 153%
👖 This ain’t your average tier-2 apparel maker anymore.
4. 📈 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹148 |
| P/E | 27.1x |
| Market Cap | ₹229 Cr |
| P/B | 2.96x |
| Book Value | ₹49.9 |
| ROE | 11.5% |
👖 Seems fair for a branded garment manufacturer with Adidas-PUMA ties.
🎯 Fair Value Range: ₹160–₹190
Based on FY26E EPS of ₹6.5–₹7.5 and a forward P/E of 22–25x (discount to Page/Lux).
5. 🔥 What’s Cooking – News, Triggers, Drama
- ✅ Jul 2025: Smart knitting factory launched with Ningbo Cixing (China)
- ✅ Q4FY25: PAT up 170.9% YoY
- ✅ Rs 500 Cr FY28 Guidance (from ₹296 Cr today)
- 👚 Adidas & Puma contracts live
- ❌ EGM to issue warrants cancelled in April 2025
- 💰 ₹7.5 Cr raised via warrants in March 2025
Trigger to watch: Smart factory monetisation, export orders, automation-led margin expansion.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity | ₹16 Cr |
| Reserves | ₹62 Cr |
| Borrowings | ₹118 Cr |
| Total Liabilities | ₹279 Cr |
| Fixed Assets | ₹53 Cr |
| CWIP | ₹8 Cr |
🟠 Debt is rising, but being used to fuel growth – asset side improving.
📉 D/E ~1.8x → high, but manageable if earnings scale.
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY25 | -₹10 Cr | -₹11 Cr | ₹21 Cr | ~Zero |
🟡 Negative CFO in FY25 = likely due to working capital expansion.
🚨 Needs to flip positive in FY26 if growth is to be sustained.
8. 📐 Ratios – Sexy or Stressy?
| Ratio | FY25 | Comment |
|---|---|---|
| ROE | 11.5% | Decent |
| ROCE | 12.0% | Improving |
| OPM | 9% | Holding |
| Inventory Days | 154 | High, but falling |
| CCC | 170 days | Better than 542 (FY21) |
Cash conversion has improved massively from FY21–22 chaos.
9. 📊 P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹200 Cr | ₹13 Cr | ₹2 Cr |
| FY24 | ₹212 Cr | ₹21 Cr | ₹5 Cr |
| FY25 | ₹296 Cr | ₹28 Cr | ₹8.45 Cr |
3-year PAT has jumped from ₹1 Cr → ₹8.45 Cr. Steady EBITDA growth too.
10. 🧵 Peer Comparison – Who Else is in the Fashion Race?
| Company | P/E | ROE | OPM | Notes |
|---|---|---|---|---|
| Page Ind | 75x | 48% | 21.5% | Premium innerwear |
| Lux Ind | 27x | 9.9% | 9.1% | Mid-market |
| Pearl Global | 32x | 22.5% | 9.3% | Global contracts |
| Active Clothing | 27x | 11.5% | 9% | Low base, fast grower |
🧵 Not luxury yet, but on Pearl Global’s path — asset-light + large brands.
11. 🧠 Misc – Shareholding, Promoters, Warrants
- 👨👩👧👦 Promoter Holding: 73.58% – solid
- 🌍 FIIs: 0.02% – just entered
- 🧵 Warrants: 5L issued @ ₹150 – not fishy, but needs monitoring
- 👀 Auditors resigned in Oct 2024 – but reappointed quickly
Nothing shady, but the company needs tighter governance as it scales.
12. 👑 EduInvesting Verdict™
Active Clothing is what happens when a low-key Ludhiana company decides to think global and act fast.
✅ Adidas + Puma + Smart Factory
✅ 3-year profit CAGR: 153%
✅ ₹500 Cr revenue guidance
🟠 High debt, negative FY25 cash flow
🚩 Needs to sustain growth + margins in FY26+
Edu Verdict™:
“Garments toh sab banate hai… par Adidas se milke 3D wale nahi.”
Smart bet if you’re into microcap fashion disruptors.
✍️ Written by Prashant | 📅 8 July 2025
Tags: Active Clothing, Ludhiana garments, Adidas supplier, Puma partnership, textile multibagger, BSE smallcap, smart knitting factory, EduInvesting, apparel stocks, FY28 guidance, 3D seamless garments, microcap multibagger
