Blankets, Profits & One Red Flag
🟣 1. At a Glance
Silky Overseas Ltd is wrapping investors in warm profit blankets with a ₹30.68 Cr SME IPO. Revenue and PAT have surged—but so has skepticism. With a P/E of 9.3x and anchor interest of ₹7.68 Cr, the IPO looks cozy. But is the growth too soft to trust?
🔥 2. The Hook – Mink Blankets, Margins, and a Mystery
A textile SME from Haryana selling mink blankets and comforters is doing ₹100 Cr+ revenue with ₹9 Cr PAT.
And now, it wants your ₹1.28 lakh for 800 shares.
The IPO feels profitable. It has anchor investors. It’s priced at 9.3x P/E.
So what’s the catch? Why is only 0.11x subscribed on Day 1?
Let’s pull the covers.
🧵 3. WTF Do They Even Do? (Business Model)
Silky Overseas Ltd is a home textile manufacturer based in Gohana, Haryana. They own the Rian Décor brand and specialize in:
🧸 Mink Blankets
🛏️ Bed Sheets
🥶 Comforters
They run a fully integrated factory – from knitting → dyeing → printing → packing – and claim export presence (esp. Middle East). It’s one of those companies where everything sounds fine…
…until you start reading between the thread count.
💰 4. Financials – Profit, Margins, ROE, Growth
Here’s what the past 4 years look like 👇
| ₹ Cr | FY22 | FY23 | FY24 | 10M FY25 (Ann.) |
|---|---|---|---|---|
| Revenue | 50.17 | 68.35 | 70.26 | 105.35* |
| EBITDA | 2.97 | 5.35 | 11.01 | 15.08 |
| PAT | -0.42 | 0.98 | 5.53 | 9.17 |
| Net Worth | 3.59 | 4.61 | 15.14 | 24.31 |
| Total Borrowing | 31.00 | 28.80 | 25.72 | 20.75 |
| ROE (%) | — | 21.3% | 36.6% | 37.7%+ est. |
| EBITDA Margin | 5.9% | 7.8% | 15.7% | 14.3% |
✅ From red to green: FY22 loss to FY25 ₹9 Cr PAT
✅ EBITDA nearly 5X in 3 years
⚠️ Sudden profit boom just before IPO
⚠️ Debt still high-ish: ₹20 Cr
🧮 5. Valuation – Cheap, Meh, or Crack?
- Post-issue P/E: 9.32x (₹161 upper band, ₹17.28 EPS)
- Post-issue Market Cap: ₹102.52 Cr
- P/BV: 4.28x
- Debt/Equity: 1.7
🧾 Fair Value Range?
Let’s use 3x valuation indicators:
- Comparable SME textile players trade at 10–15x P/E
- Industry P/B for home textiles (smallcap) ranges 2.5–4x
- With 35%+ ROE, a PEG of ~1 implies 9–11x is justified
So:
👉 EduFair™ Value Range = ₹165 – ₹195
(Yes, IPO is at ₹161. Not exactly a steal, but fairly priced)
📦 6. What’s Cooking – News, Triggers, Drama
🔹 Anchor Investors: ₹7.68 Cr raised
🔹 Major Object: ₹12 Cr for working capital = classic textile need
🔹 ₹4.3 Cr for extra storage = makes sense
🔹 ₹3 Cr to repay loans = lightening the load
🎯 DRAMA?
Only one red flag: PAT jump from ₹1 Cr → ₹5.5 Cr → ₹9 Cr in 2 years just before IPO. No major capex, so this might be accounting-led or temporary margin spike.
🧾 7. Balance Sheet – How Much Debt, How Many Dreams?
Still has ₹20.75 Cr in borrowings → will reduce marginally post IPO.
But…
- Company has built decent net worth cushion of ₹24.31 Cr
- D/E to reduce from 1.7 to ~1.1 post repayment + capital infusion
Verdict? Balanced, manageable – but not a fortress.
💸 8. Cash Flow – Sab Number Game Hai
No detailed cash flow statements yet in the SME filings. But extrapolating:
- PAT ₹9 Cr
- EBITDA ₹15 Cr
- Capex needs seem limited
- High working capital cycle likely (textile = inventory-heavy)
Expect moderate-to-low free cash flow.
📊 9. Ratios – Sexy or Stressy?
| Metric | Value | Verdict |
|---|---|---|
| ROE | 36.56% | 🔥🔥🔥 |
| ROCE | 39.54% | 💰 |
| PAT Margin | 7.94% | Reasonable |
| EBITDA Margin | 15.80% | Healthy |
| P/E | 9.3x | Reasonable |
| Debt/Equity | 1.70 | Needs Trim |
Textbook SME IPO formula: “Raise ROE, Lower Debt, List at <10x.”
They’re checking the boxes.
📈 10. P&L Breakdown – Show Me the Money
Let’s break FY24 👇
- Revenue: ₹70.26 Cr
- COGS + OpEx: ~₹59.25 Cr
- EBITDA: ₹11.01 Cr
- Dep + Int: ~₹4.5 Cr
- PAT: ₹5.53 Cr
So for every ₹100 of sales, they:
- Keep ₹15–16 as EBITDA
- Retain ~₹8 as PAT
It’s capital-efficient for textiles, but sustainability is the question.
⚖️ 11. Peer Comparison – Who Else is in the Game?
| Company | Rev (₹Cr) | PAT (₹Cr) | P/E | ROE |
|---|---|---|---|---|
| Vishnu Cotton | 60 | 4.2 | 12.4x | 24% |
| Trident Ltd | 7,300 | 400 | 16.5x | 16% |
| Silky Overseas (IPO) | 105.35* | 9.17* | 9.3x | 36.6% |
✅ Higher ROE than most
✅ Much smaller base
⚠️ Less brand value than Trident or big players
⚠️ SME discount always applies
🧙 12. Misc – Shareholding, Promoters, Anchors
Promoters:
- Mr. Sawar Mal Goyal
- Mr. Ananya Goyal
- S. M. Goyal & Sons (HUF)
Pre-IPO holding: 86.38%
Post-IPO: ~70% (implied)
Anchor Investors:
- ₹7.68 Cr raised on June 27
- Lock-in: 50% till Aug 2, rest till Oct 1
Listing: NSE SME → Liquidity will be thin.
✅ 13. EduInvesting Verdict™
“Silky Smooth or Too Fluffy?”
Silky Overseas IPO is like a perfectly fluffed comforter — looks great, feels cozy, but may not survive a hot wash (i.e., volatile SME markets).
You get:
✅ Integrated textile play
✅ 9x P/E pricing
✅ Anchor support
✅ ROE over 35%
But also:
⚠️ PAT jump timing is sus
⚠️ SME liquidity is low
⚠️ ₹1.28 lakh minimum ticket size = not for dabblers
Final Take?
It’s a “value-textile” IPO with momentum stitched in.” Fairly valued, mildly appealing — worth a blanket observation post-listing 📉📈
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Silky Overseas IPO, SME IPO June 2025, Textile SME IPO, Mink Blanket Manufacturer, NSE SME Listing, Silky Overseas Review, Rian Decor IPO, Gretex IPO, IPO Anchor Investor, IPO Valuation Analysis
