(Because nothing says “confidence” like promoters selling just before profits spike)
1. At a Glance
Vishal Fabrics, the Chiripal Group’s denim & textile processing arm, posted a 91% YoY profit jump in Q1 FY26, riding on ₹397 Cr in quarterly revenue and stable ~7% operating margins. The market didn’t clap — instead, it pulled the share price down 6.21% to ₹33.6. Promoter holding has fallen from 69% to 60.56% in just one quarter, FIIs have doubled down (17.05% now), and the P/E sits at a modest 21.1.
2. Introduction
Founded in 1985, Vishal Fabrics has stitched itself into the denim supply chain with large-scale manufacturing, dyeing, and processing capacity. Think of it as the quiet backstage crew making the jeans you’re wearing — while bigger brands like Levi’s take the curtain call.
The company is ISO 9001:2015, ISO 14001:2015, OEKO-TEX certified, works on both own-brand and job-work basis, and is part of the Ahmedabad-based Chiripal Group — a textile-to-education conglomerate. Despite strong Q1 numbers, the overhang of promoter stake sale and high debtor days (126) keeps analysts cautious.
3. Business Model (WTF Do They Even
Do?)
- Core Products: Denim fabrics, dyed yarn, processed textiles.
- Operations: In-house manufacturing + job-work for others (steady base revenue).
- Customers: Apparel brands, garment exporters, fabric traders.
- Revenue Split: Mostly B2B — margins aren’t designer-level but volumes are.
High-volume, mid-margin business = scale wins, but working capital discipline is key.
4. Financials Overview
TTM Revenue: ₹1,577 Cr
TTM PAT: ₹33 Cr
EPS (TTM): ₹1.67
P/E: 21.1
Book Value: ₹24.2
CMP/BV: 1.38
Q1 FY26 vs Q1 FY25:
- Revenue: ₹397.17 Cr (+17% YoY)
- PAT: ₹9.16 Cr (+91% YoY)
- OPM: 7.17% (flat YoY)
- Net margin: ~2.3%
5. Valuation (Fair Value RANGE only)
P/E Method
- EPS: ₹1.67
- Sector median P/E: ~28.5
- FV Range (P/E 18–25) = ₹30 – ₹42
P/B Method
- BV: ₹24.2
- Sector median P/B: ~2.5
- FV Range (P/B 1.5–2)
