At a Glance
Anand Rayons Ltd is a tiny textile & petrochemical hybrid that trades like a tech unicorn. At ₹294, with a P/E of 178, it’s priced higher than companies that actually make money. Revenue is flat at ₹314 Cr in FY25, OPM barely scratches 2-3%, and profits hover at a laughable ₹3 Cr. Promoters are silently offloading stake, debt is reduced, but the stock’s 500% one-year rally smells more like speculation than fundamentals.
Introduction
Anand Rayons makes embroidery yarns and dyed fabrics, with side hustles in petrochemicals and packaging. This diversification should sound cool, but in reality, it’s a “jack of all trades, master of none” scenario. Margins are as thin as their yarn, growth is crawling, and yet the market has pumped the price to levels that would make PDS Apparel look undervalued. Investors are betting on a future where this yarn-spinner becomes Reliance Industries—good luck with that.
Business Model (WTF Do They Even Do?)
- Core: Yarn & fabrics for apparel and embroidery.
- Side Gigs: Petrochemicals (oils, adhesives) and aluminum foil packaging.
- Strategy: Expand exports of chemicals and packaging products.
- Reality Check: Too many businesses, too little profit.
Roast: They’re selling threads but holding the market with invisible ropes.
Financials Overview
- Revenue (FY25): ₹314 Cr (flat vs FY24)
- Operating Profit: ₹8 Cr (OPM 2.6%)
- PAT: ₹3 Cr
- EPS: ₹1.89
- ROE: 6.1%
Comment: Revenue flat, profits flat, valuation sky-high.
Valuation
1. P/E Method
- EPS: ₹1.9
- Industry P/E: 20–25
- Fair Value ≈ ₹40–₹50
2. P/BV Method
- BV: ₹42
- Reasonable P/B: 2x
- Fair Value ≈ ₹80
3. DCF
Flat cash flows, thin margins → intrinsic value ₹60–₹90.
💡 Fair Value Range: ₹50–₹90
Current price
