🧵 Aananda Lakshmi Spinning Mills is up 80% from lows – But is this yarn or just another scam thread?

At a Glance

Aananda Lakshmi Spinning Mills Ltd is a ₹6 Cr market-cap “textile” company that officially shut down its spinning division in FY25. It still reports profits, but 100% of it comes from other income. With negative reserves, book value of ₹–43.9, and zero institutional interest, this is less a turnaround and more an accounting hallucination in cotton clothing.

1. 🎯 Introduction with Hook

If you bought this stock at ₹10 and watched it go to ₹25, congratulations — you have more luck than LIC IPO investors.

But here’s the real picture:

• 🚨 Spinning operations discontinued
• 💸 Net worth = negative ₹18.85 Cr
• 📉 Sales growth (5Y) = –23.9% CAGR
• 💀 Book Value: –₹43.9

And yet, it trades at a P/E of 1.76 — not because it’s cheap, but because it’s delusional.

2. 🧶 WTF Do They Even Do? (Business Model)

They used to make:

• Grey Yarn: For sweaters, socks, innerwear
• Specialty Mélange Yarn: Cotton/Viscose, Poly/Viscose blends

⚠️ As per FY25 filings, the spinning division has been shut.

Now, there’s no clarity on what business they’re continuing. FY25 “revenue” is ₹2.5 Cr — but mostly non-core.

So basically, this is now a shell with a name, a BSE listing, and a questionable future.

3. 💸 Financials – Profit, Margins, Earnings Breakdown