At a Glance
Osiajee Texfab has done what even most smallcaps can only dream of: +530% in one year, 40% ROE, TTM profit up 5x, and working capital cleaned up from 575 days to 107 days. But with only 2.78% promoter holding, nano-size revenues, and no dividends – the real question is: Legit turnaround, or just meme-stock magic?
1. 🔥 Introduction with Hook
Once upon a time, this company was doing ₹2 Cr sales per year.
Now? ₹7 Cr in FY25. Net profit? ₹5 Cr.
Market cap? ₹134 Cr 😳
Yes, welcome to the land of high-margin, ultra-low volume textile miracles – where ROE is 40%, debt is gone, and somehow… promoters own almost nothing.
Textile stock ya magician?
2. 🧶 WTF Do They Even Do? (Business Model)
It’s a yarn. Literally.
Osiajee Texfab:
- Manufactures AND trades in every textile fiber known to mankind, including:
- Cotton, nylon, polyester, acrylics, silk, flax, hemp, tericott (whatever that is), even something called “como filament.”
- Also trades in:
- Embroidery fabrics, furnishing items, sarees, readymades, sewing thread, bed linen… you name it.
Basically, textile generalist with no clear focus but a wide SKU portfolio.
Their website feels like it was made in Windows XP Paint. But the stock? Running on steroids.
3. 📈 Financials – Profit, Margins, ROE
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | ROE % |
|---|---|---|---|---|
| FY21 | 4.95 | 0.40 | 11% | – |
| FY22 | 2.90 | 0.71 | 21% | – |
| FY23 | 2.45 | 1.12 | 49% | 12% |
| FY24 | 2.38 | 1.16 | 61% | 10.7% |
| FY25 | 7.09 | 5.00 | 71% | 40.1% 💥 |
What. Is. Happening.
₹7 Cr sales → ₹5 Cr net profit → 71% net margin?!
Yeh textile business hai ya black magic?
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
- P/E (TTM) = 26.9 ✅
- Price / Book = 8.97 ❌
- Market Cap / Sales = ~19x 😬
- ROE = 40.1% ✅
- Dividend = ZERO for 5 straight years ❌
Osiajee trades like a startup with no VC, no moat, but epic TTM charts. Valuation looks crack if FY25 was a one-time fluke.
5. 🕵️ What’s Cooking – News, Triggers, Drama
- 🧼 Working Capital Days reduced from 909 to 107 = Legit cleanup
- 🧍♂️ Promoter holding = 2.78% – basically, they’re watching from the stands
- 📉 Public owns 97% of the company
- 🔃 One promoter relative selling shares, another buying = suspicious game of musical chairs
- 🧾 No dividend, no buyback, no capex = free cash but no use?
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Debt (₹ Cr) | 2.8 | 6.05 | 1.95 |
| Reserves (₹ Cr) | 3.4 | 4.56 | 9.57 |
| Networth | ~₹15 Cr | ||
| Debt/Equity | 0.13 |
✅ Debt reduced
✅ Equity base stable
⚠️ Cash usage unclear, despite ₹5.77 Cr from operations
7. 💵 Cash Flow – Sab Number Game Hai
| FY25 (₹ Cr) |
|---|
| CFO |
| CFI |
| CFF |
| Net Cash |
They’re generating real cash, not just paper profits. That’s a good sign.
Still, where’s the dividend? Where’s the reinvestment? Where’s the capex?
8. 🧮 Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROE | 40.1% | Sexy ✅ |
| ROCE | 30.4% | Sexy ✅ |
| OPM | 70.7% | LOL ✅ |
| Cash Conv Cycle | 7,100+ | 😱 Stressy |
| P/B | 9x | Rich ❌ |
| Promoter Stake | 2.78% | 🚩 Big Red |
9. 📊 P&L Breakdown – Show Me the Money
| FY25 (₹ Cr) | Amount |
|---|---|
| Revenue | 7.09 |
| Operating Profit | 5.01 |
| Depreciation | 0.04 |
| Interest | 0.00 |
| PBT | 5.00 |
| Net Profit | 5.00 |
Yes – they made 5 Cr profit on 7 Cr revenue.
Warren Buffett is clapping somewhere.
10. 👕 Peer Comparison – Who Else in the Game?
| Company | Revenue (Cr) | ROE (%) | P/E | M.Cap (Cr) |
|---|---|---|---|---|
| KPR Mill | 6,387 | 17.4 | 46.5 | 37,872 |
| Trident | 6,987 | 8.3 | 42.8 | 15,864 |
| Vardhman Text. | 9,784 | 9.3 | 16.4 | 14,543 |
| Osiajee Texfab | 7 | 40.1 | 26.9 | 134 |
🤔 Sales of ₹7 Cr vs ₹7,000 Cr peers. Yet ROE beats all. Suspiciously efficient.
11. 🧍 Misc – Shareholding, Governance
- 🧑💼 Promoter stake: 2.78% only
- 📉 No institutional ownership
- ⚠️ Insider trades in June 2025
- One relative sold 51K shares
- Another bought 29K shares
When family starts juggling shares like gajak at Holi, retail investors should be extra careful.
12. 🎯 Fair Value (FV) Range
Let’s do basic math:
- FY25 PAT = ₹5 Cr
- Assume FY26 PAT grows 20% = ₹6 Cr
- Assign reasonable P/E range: 15x – 20x
➡ Fair M.Cap Range = ₹90 – ₹120 Cr
➡ Fair Value per Share = ₹167 – ₹222
(Current Price = ₹249)
So, it’s overvalued by 10–30% if FY25 was the peak.
13. 🧠 EduInvesting Verdict™
“40% ROE, 70% margin, no debt, 2.78% promoter holding – either it’s a miracle… or meme material.”
✅ It looks like a turnaround
✅ Financials are sharp
🚩 But promoter holding + volume + insane margins = risk max
Verdict:
🎩 Osiajee is either the textile stock of the decade… or a magician who disappears when SEBI knocks.
✍️ Written by Prashant | 📅 July 2, 2025
Tags: Osiajee Texfab, Smallcap Textile Stock, BSE Penny Stocks, ROE Monster, Promoter Low Holding, EduInvesting
