At a glance
Zenith Exports Ltd reported a net profit of ₹171 lakh in FY25, compared to ₹30 lakh last year. Sounds impressive? Wait till you learn that ₹448 lakh of it came from selling an office property in Bhagalpur.
Without that one-time gain, the company would’ve been deep in the red.
Textile revenues fell 12% YoY, cash flow turned negative, and core operations bled. In short — Bhagalpur ne bacha liya, not business.
🧵 About the Company
Zenith Exports Ltd is a Kolkata-based player in:
- 🧣 Silk fabrics and made-ups
- 🧤 Industrial leather gloves
- 🧵 Export-oriented silk fabric units
- 🧶 Yarn business
Export-focused, artisan-rooted, and heavily dependent on traditional textile markets — but facing global pressure from low-cost rivals in Vietnam, Bangladesh, and China.
👔 Key Managerial Personnel (KMP)
| Role | Name |
|---|---|
| Chairman & CFO | Mr. Sushil Kumar Kasera |
| Company Secretary | Ms. Anita Kumari Gupta |
| New Independent Director | Mr. Abhishek Bafna |
| Secretarial Auditor Appointed | R. Kabra & Associates |
| Internal Auditor Appointed | S. Ratan & Co. |
Multiple changes in the audit and compliance team — almost like a financial detox plan.
📊 FY25 Financials Summary
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue from Operations | ₹7,210 lakh | ₹8,170 lakh | 🔻 -11.8% |
| Total Income | ₹7,611 lakh | ₹8,554 lakh | 🔻 -11.0% |
| Exceptional Item (Bhagalpur Sale) | ₹448 lakh | – | 🧨 Mega Gain |
| EBITDA (Est.) | ₹(76) lakh | ~₹170 lakh | 🔻 Crashed |
| Profit Before Tax (PBT) | ₹240 lakh | ₹66 lakh | 🚀 +263% |
| Profit After Tax (PAT) | ₹171 lakh | ₹30 lakh | 🚀 +470% |
| EPS | ₹3.17 | ₹0.56 | 🚀 +466% |
🔍 But Without That Bhagalpur Sale?
PBT would be ~₹(208) lakh → clear loss-making.
🧱 Segment-wise Revenue (FY25)
| Business Segment | Revenue (₹ lakh) |
|---|---|
| Silk Fabrics & Made-ups | ₹5,307 |
| Industrial Leather Gloves | ₹1,081 |
| EOU – Silk Fabrics | ₹821 |
| Yarn | ₹254 |
| Total | ₹7,463 |
| Less: Inter-segment Adjustments | ₹253 |
| Net Revenue | ₹7,210 |
📉 Every segment showed YoY decline. The flagship silk unit still holds the weight, but there’s no growth driver.
🏦 Balance Sheet Snapshot
| Item | FY25 (₹ lakh) | FY24 (₹ lakh) |
|---|---|---|
| Total Equity | ₹8,025 | ₹8,197 |
| Borrowings (Total) | ₹1,270 | ₹1,532 |
| Inventories | ₹2,603 | ₹2,745 |
| Trade Receivables | ₹1,525 | ₹1,422 |
| Total Assets | ₹9,590 | ₹10,089 |
Despite selling property, net worth shrank, and debt wasn’t fully repaid. Inventory and receivables remain sticky.
💸 Cash Flow Analysis
| Cash Flow Item | FY25 (₹ lakh) | FY24 (₹ lakh) |
|---|---|---|
| Operating Cash Flow | ₹(303) | ₹(657) |
| Investing Cash Flow | ₹(398) | ₹+1,703 |
| Financing Cash Flow | ₹+138 | ₹(484) |
| Net Cash Flow | ₹(563) | ₹+562 |
📉 Burned cash even after asset sale. Not sustainable. The only cash inflow this year came from Bhagalpur’s farewell.
🧮 Forward Value (FV) Calculation
Let’s not be swayed by this year’s inflated EPS (₹3.17). We strip off the Bhagalpur silk cover and estimate true earnings power.
Scenario A: Optimistic Revival
- Projected Normal EPS FY28 = ₹4.00
- P/E = 10×
- FV = ₹40/share
Scenario B: Realistic (Slow Growth)
- Normal EPS = ₹1.50
- P/E = 8×
- FV = ₹12/share
🎯 CMP = ₹103.50
This means:
- Overvalued by >150% even under optimistic growth.
- Fair Value Band: ₹12–₹40/share
🧠 Unless new long-term orders come in, or the company pivots digitally, the current valuation is pure sentiment or sheer speculation.
🧠 EduInvesting Take
Zenith Exports is like a silk kurta that hides a tear behind the embroidery:
- Revenue fell
- Operations lost money
- One office sale bailed them out
- Cash flow? Negative.
- And at ₹100+, the stock trades like it’s FabIndia’s parent.
The exceptional item is a one-time miracle — not recurring income.
So what do we really have?
A traditional textile firm… accidentally profiting from real estate.
⚠️ Risks & Red Flags
- Thin margins and operational losses
- Working capital pressures (high inventory & receivables)
- Stagnating export competitiveness
- EPS inflated by one-time property sale
- Cash burn in core ops despite no capex
🔭 What to Watch Next?
- Any recovery in core revenue (especially silk exports)
- Updates on strategic tie-ups or automation (none announced yet)
- Property assets held – are more Bhagalpurs waiting?
- Future board commentary on growth initiatives (missing this time)
🧵 Final Verdict
Zenith Exports Ltd is less of a textile play and more of a surprise real estate lottery this year.
Unless they bring in big export orders or reinvent their business, it’s hard to justify trading at ₹100+.
For now, this isn’t a “Zenith” — it’s more like the sleeve of a tattered sherwani stitched with gold thread.
🏷️ Tags:
Zenith Exports FY25 Results, Q4 FY25 Earnings, Bhagalpur Property Sale, Smallcap Textile Stocks India, Exceptional Items FY25, Silk Fabric Exporters India, EduInvesting
🖋️ Prashant Marathe
🗓️ 30 May 2025
📢 EduInvesting — Wrapping numbers in satire, like silk on a skeleton.
