1. At a Glance – When Curtains Don’t Block Losses
₹378 Cr market cap. ₹155 stock price. 69% return in 1 year. 112% return in 6 months. And yet… latest quarterly sales are just ₹6.64 Cr with a ₹-0.63 Cr loss.
Ladies and gentlemen, welcome to Candour Techtex Ltd, where blackout curtains block sunlight but apparently not red ink.
This is a company trading at 7.03 times book value, with ROE of just 2.18%, negative earnings yield, and an EV/EBITDA of 148. Yes, 148. That’s not a typo. That’s either optimism… or oxygen shortage.
Quarterly sales are down 85.7% YoY. Profit down 325% YoY. Operating margin? -4.22%.
And yet the stock is flying.
Is this a hidden industrial fabric disruptor? A defence fabric play? Or just a market darling powered by preferential allotments and big order announcements?
Let’s pull the curtain back.
2. Introduction – From Curtains to Defence Trials
Incorporated in 1986, Candour Techtex started as a modest textile manufacturer. Today it makes blackout coated fabrics, laminated automotive fabrics, fire-retardant glass fabrics, and even plastic crates.
Basically, if it can be coated, laminated, or heat-resistant — they’ll try to manufacture it.
Recently, the company secured:
- 6,700 meters defence trial order linked to ADRDE (DRDO)
- 100,000 meters automotive lamination order from Reliance (~₹1 Cr)
- ₹20 Cr LOI from Faze Three
- ₹29 Cr job work from ASK Apparels
- ₹90 Cr five-year contract from RITA International (plastic crates)
And then came the big one:
₹198 Cr proposed preferential issue to expand coating capacity from 3.8 mn meters to 9.5 mn meters and lamination from 6 mn to 15 mn meters by FY28.
But here’s the plot twist…
While orders are raining on paper, the latest quarterly numbers are collapsing.
So what’s real? And what’s narrative?
3. Business Model – WTF Do They Even Do?
Let’s simplify this for the “smart but lazy” investor.
Candour Techtex does three main things:
1. Blackout Coated Fabrics
These are multi-layer coated curtains that block light. Used in homes, hotels, commercial spaces. Acrylic coatings, water-repellent layers, sometimes fire-resistant.
Basically, curtains with attitude.
2. Laminated Fabrics
They laminate TPU films onto fabrics. Applications:
- Automotive seat covers
- Car roof linings
- EV interiors
- Mattress fabrics
- Blackout curtain laminates
Production capacity: 50,000 meters/month currently.
Clients mentioned include top auto manufacturers like Honda, Toyota, Maruti, Hyundai (via Reliance).
If you’ve sat inside a car recently, chances are you’ve touched laminated fabric like this.
3. Fire Retardant Glass Fabrics
Specialised coated fabrics for building materials — mostly export-oriented.
4. Plastic Crates
Manufactured in Ankleshwar. Initially loss-making, now at breakeven. Recently secured ₹90 Cr 5-year contract.
So this is not a single-product company.
It’s a textile +
