Shlokka Dyes wants your ₹95–100 per share money, valuing itself at ~₹214 crore. FY25 revenue jumped 68% to ₹103 crore, and PAT doubled to ₹10 crore. ROE and ROCE are both ~36% — hotter than a Holi bonfire. Debt/Equity stands at 1.02, which means they’re borrowing almost as much as they’re worth. Post-IPO EPS dilutes from ₹6.65 to ₹4.68, dragging P/E to 21.4x. That’s not cheap for a three-year-old company in a commodity-like dye industry.
So the roast question: is this a palette of bright prospects or just watercolors that fade after first wash?
2. Introduction
India’s textile industry can’t survive without dyes. From your Holi t-shirt that bled color in the first wash to your uncle’s bright wedding kurta, synthetic dyes are the unsung heroes. Shlokka Dyes, founded in 2021 (yes, pandemic baby), claims to have scaled revenue from ₹8.8 Cr in FY23 to ₹103 Cr in FY25. That’s a “Virat Kohli chase innings” kind of growth.
But growth that steep makes auditors nervous. Because either you’re a genius manufacturer… or a genius accountant.
IPO size is ₹63.5 Cr, mostly to fund working capital (₹28 Cr) and repay debt (₹11.5 Cr). Translation: “We grew too fast, now fund our receivables and bank dues.”
3. Business Model – WTF Do They Even Do?
They make reactive dyes and pigments – basically chemicals that bond with textiles, leather, and paper. Portfolio includes MX, H&P, HE, VE, RR dyes. If those sound like rap names, remember: this industry is equally gangster.
Revenue comes from:
Textiles: 70%+ demand, from saree mills to Zara suppliers.
Leather & Paper: Smaller but higher-margin uses.
Digital Printing Dyes: New-age growth story.
Plant capacity = 9,000 MT annually in Bharuch, Gujarat. In-house lab tests like HPLC and shade matching — Sherlock note: good quality focus.
But competition? Every second factory in Gujarat makes dyes. Margins depend on raw material prices (largely imported intermediates) and Chinese dumping.
4. Financials Overview
Metric
Latest Qtr (Q4FY25)*
YoY Qtr (Q4FY24)
Prev Qtr (Q3FY25)
YoY %
QoQ %
Revenue (₹ Cr)
25.9
15.4
25.5
68.2%
1.6%
EBITDA (₹ Cr)
4.7
3.2
4.6
46.9%
2.2%
PAT (₹ Cr)
2.5
1.2
2.4
108.3%
4.2%
EPS (₹)
2.5
1.2
2.4
108.3%
4.2%
*Derived from annual totals split.
Roastmaster quip: Revenue steady across quarters, margins stable. This is not random Excel jugglery — numbers seem dyed in consistency, not dipped in fraud ink.
