🟡 At a Glance
7NR Retail is a microcap textile trader that calls itself a retailer. With P/E of 131, ROE of 1%, promoter holding of 11%, and debtors hanging around like unpaid rent — it’s giving Zudio dreams with DHFL vibes. They’re now raising ₹28 Cr via rights issue to survive. Should you watch, wear, or worry?
1. 🎣 Introduction with Hook
Imagine walking into a shop with no customers, racks of unsold stock, and a board saying “Rights Issue – Please Help”. That’s 7NR Retail.
Their last 4-year stock chart looks like a slow bleed.
Their P&L reads like a student’s pocket diary – occasional ₹1 Cr profits, mostly losses.
Yet, the share is up 20% in 1 year. Because why not?
This is the kind of stock where you don’t ask “what does it sell?”, but rather “who is buying this story?”
2. 🧠 WTF Do They Even Do? (Business Model)
🧵 7NR Retail is in the branding and retailing of readymade garments, especially suiting-shirting and other textile goods.
But wait…
They’re not designing or manufacturing.
They’re not a fashion brand.
They’re mostly buying fabric → selling fabric, with occasional dreams of expansion.
No stores. No visible brand recall. But yes, one thing is solid: corporate actions and fundraises.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹21.47 Cr | ₹11.62 Cr | ₹47.68 Cr |
| Operating Profit | ₹0.45 Cr | ₹-1.35 Cr | ₹-0.06 Cr |
| Net Profit | ₹0.33 Cr | ₹-1.11 Cr | ₹0.24 Cr |
| OPM % | 2.1% | -11.6% | -0.13% |
| ROE | 1.14% | -3.4% | 1.76% |
🔻 Revenues swinging wildly
🔻 Margins all over the place
🔻 Barely any profit despite 10+ years of operations
This is not fashion — this is financial cosplay.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹7.72
- Book Value: ₹5.19
- P/E: 131
- Market Cap: ₹43 Cr
Let’s just say: If valuation is an art, this stock is Picasso on acid.
🎯 Fair Value Range (FV):
Let’s assume ₹0.5–₹1 Cr sustainable PAT and 10–15x P/E
➡ FV = ₹5 to ₹8 max
➡ CMP is already ₹7.7
🧮 EduCalc™ FV Range: ₹5 – ₹8
(Yes, that’s generous. You’re welcome.)
5. 🔥 What’s Cooking – News, Triggers, Drama
📰 Rights Issue: Raising ₹28 Cr by issuing 2.8 Cr shares @ ₹10 (premium to CMP 🤯)
👻 Promoter holding fallen from 27.2% (Jun ‘22) → 10.96% (Mar ‘25)
Either dilution, escape, or both.
🪦 Loss-making quarters became a trend. But last quarter profit of ₹1.3 Cr = sudden miracle?
🧑⚖️ EGM, postal ballot, scrutinizer reports — corporate actions ki dukaan.
6. 🏦 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹28.01 Cr |
| Reserves | ₹1.03 Cr |
| Borrowings | ₹4.82 Cr |
| Total Assets | ₹40.56 Cr |
✅ Low debt
❌ Extremely low reserves
⚠️ Raising money likely to patch holes, not fuel growth
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | FCF |
|---|---|---|
| FY23 | ₹-18 Cr | Negative |
| FY24 | ₹-2.86 Cr | Negative |
| FY25 | ₹3.05 Cr | Finally positive! |
After years of negative cash flow, FY25 is positive. Maybe they sold a few shirts finally?
8. 📐 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 1.14% |
| ROCE | 2.18% |
| OPM | 2.1% |
| Debtor Days | 164 |
| Inventory Days | 99 |
| CCC | 194 days |
🧻 Debtors & inventory combined = cash trap
👎 Returns are joke-tier
📈 Working capital cycle is more stretched than your Diwali churidar
9. 🧾 P&L Breakdown – Show Me the Money
| Quarter | Sales ₹ Cr | Net Profit ₹ Cr |
|---|---|---|
| Mar ‘24 | ₹1.00 | ₹-0.23 |
| Jun ‘24 | ₹4.05 | ₹-0.51 |
| Sep ‘24 | ₹2.00 | ₹-0.57 |
| Dec ‘24 | ₹0.50 | ₹0.10 |
| Mar ‘25 | ₹14.92 | ₹1.30 |
That jump in Mar ‘25 quarter is bigger than their brand awareness.
One-off? Manipulated? Eid discount sale? God knows.
10. 🧩 Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | Sales (Cr) |
|---|---|---|---|
| Trent | 136 | 30% | ₹17,134 |
| Go Fashion | 52 | 14.4% | ₹848 |
| 7NR Retail | 131 | 1.14% | ₹21 |
They’re charging a Trent-level P/E with a Kirana shop balance sheet.
11. 📦 Miscellaneous – Shareholding, Promoters, Drama
| Shareholder Type | Jun ‘22 | Mar ‘25 |
|---|---|---|
| Promoters | 27.2% | 10.96% |
| Public | 72.8% | 89.04% |
| Shareholders | 15K | 36.9K |
👎 Promoters disappearing
👀 Public retail growing
🧻 Rights issue likely to further dilute small holders
12. ⚖️ EduInvesting Verdict™
7NR Retail is the financial equivalent of a discount shirt: looks decent from far, but stitching starts opening in one wash.
The rights issue, promoter exits, high P/E, and unstable P&L = big red flags 🚩🚩🚩
And yet, it jumped 20% in a year.
Why?
Because hope in microcaps never dies.
Just know this:
You’re not buying clothes. You’re buying a lottery ticket in cotton wrapping.
🏷️ Suggested Title:
“131 P/E, 11% Promoter Holding – 7NR Retail Is Selling Garments and Dreams”
✍️ Written by Prashant | 📅 July 8, 2025
Tags: 7NR Retail, Microcap Stocks, Penny Stocks, Textile Business, Rights Issue, EduInvesting Roasts
