🧵 At a glance:
Swaraj Suiting Limited just reported a net profit of ₹3,347.89 lakh (₹33.47 crore) for FY25 — up 81% YoY. But wait — they also splurged a jaw-dropping ₹14,024.49 lakh on tangible assets. That’s nearly 42% of their total assets pumped into machines, plants, and future dreams. Either they’re building India’s next Raymond… or over-leveraging like it’s 2008.
🧵 About Swaraj Suiting Ltd
- Headquarters: Bhilwara, Rajasthan (Textile Capital of India)
- Sector: Suiting Fabric Manufacturing
- Listed on: NSE SME
- CIN: L18101RJ2003PLC018359
- Face Value: ₹10
- Promoter: Mohammed Sabir Khan (DIN: 00561917)
- Associate Firm: Madway Suiting Pvt Ltd (formerly Cyan Textile)
Despite sounding like your uncle’s wedding sherwani brand, Swaraj has grown from a small fabric firm to a ₹400+ crore topline textile beast.
📈 FY25 Consolidated Results (in ₹ Lakhs)
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue from Operations | 41,656.84 | 31,958.84 | 🔼 +30.4% |
| Other Income | 179.55 | 592.27 | 🔽 -69.7% |
| Total Revenue | 41,836.39 | 32,551.11 | 🔼 +28.5% |
| Total Expenses | 37,376.46 | 30,111.67 | 🔼 +24.1% |
| Profit Before Tax | 4,459.93 | 2,439.44 | 🔼 +82.9% |
| Net Profit | 3,347.89 | 1,819.61 | 🔼 +84% |
| EPS (Diluted) | ₹15.21 | ₹10.15 | 🔼 +50% |
| Associate Share | ₹16.24 | ₹30.17 | ⚠️ Decline |
💥 This ain’t no “steady compounder” story. This is a high-risk, high-CAPEX textile rollercoaster.
💸 Cash Flow FY25 (in ₹ Lakhs)
| Section | FY25 | FY24 |
|---|---|---|
| Cash from Ops | 4,086.43 | 4,489.58 |
| Cash used in Investing | (12,732.95) | (9,908.44) |
| Cash from Financing | 8,689.01 | 5,382.48 |
| Net Change | +42.50 | -35.38 |
| Closing Cash | ₹48.87 | ₹6.37 |
They’re burning through investing cash like college students burn Maggi at 2 AM.
🏗️ Where Did ₹140 Cr Go?
→ CAPEX Breakdown (FY25):
- Tangible Asset Purchase: ₹14,024.49 lakh
- CWIP (Capital Work in Progress): ₹7,277.29 lakh
- Total Fixed Assets (Gross): ₹26,137.15 lakh
- Last year: Just ₹17,569.72 lakh
🎯 In short: ₹86 crore added in new machines, plants, capacity upgrades, and more.
🧾 Balance Sheet Highlights (Consolidated, ₹ Lakhs)
| Item | FY25 | FY24 |
|---|---|---|
| Share Capital | 2,207.83 | 1,827.73 |
| Reserves & Surplus | 13,159.81 | 8,437.48 |
| Long-Term Borrowings | 18,875.45 | 17,752.40 |
| Short-Term Borrowings | 7,908.88 | 5,753.03 |
| Trade Payables | 13,154.60 | 6,280.82 |
| Total Assets | 57,106.67 | 35,621.35 |
✅ Equity is up due to warrant conversion
⚠️ Debt is rising — but matched by asset growth
📦 Inventories rose to ₹13,951.23 lakh — up 54% YoY
📄 Trade receivables at ₹10,085.77 lakh — big chunk of revenue locked
🧠 EduInvesting Take: “Big Machines, Bigger Ambitions”
Let’s call a spool a spool:
- 🔧 Massive asset build-up = Expansion Mode ON
- 🧾 EPS surge + clean audit = Good execution
- 📉 Huge working capital lock = Red flag if sales dip
- 📈 Profit growth outpaced revenue = Strong margin control
But let’s not forget: Debt is now ₹27,000+ lakh combined. And this isn’t a PSU with a sovereign guarantee.
🔍 Auditor’s Remarks
- ✅ Clean opinion (both standalone & consolidated)
- ✅ Unmodified report from KARP & Co.
- ❌ No frauds, complaints, or provisioning adjustments
- ⚖️ No reservations on going concern or compliance
This means — whatever they’re doing with ₹140 Cr… they’re doing it by the book.
🎯 Forward Fair Value Estimation (FY26)
| Assumption | Value |
|---|---|
| EPS Growth (est) | 15% |
| FY26E EPS | ₹17.5 |
| P/E Multiple | 17x (industry average) |
| 🎯 Forward FV | ₹298–310 range |
CMP = ₹255 → 18–22% upside if growth sustains and interest doesn’t eat up margin.
But high working capital needs = tightrope walk. One stumble, and we’re rolling fabric downhill.
🔥 Risks & Red Flags
- ⚠️ Working capital ballooning → receivables + inventories both up ~50%
- ⚠️ High asset-to-sales ratio → will assets convert to cash?
- ⚠️ SME liquidity risk → Hard to exit big positions
- ⚠️ Debt + interest risk → Finance cost was ₹1,905 lakh in FY25 alone
🪡 Edu Punchline
“Swaraj isn’t just stitching suits — it’s tailoring its destiny. But if the runway ends before the fashion show begins, even ₹140 Cr of machines can’t save the outfit.”
Tags:
Swaraj Suiting Ltd FY25 Results, Swaraj Suiting Profit, Swaraj Suiting Balance Sheet, Swaraj Suiting EPS, Swaraj SME Textile Growth, Swaraj Suiting Capex, EduInvesting Textile
Author: Prashant Marathe
Date: May 30, 2025
