1. At a Glance
Kaytex Fabrics is coming to NSE SME with a ₹69.81 crore IPO, featuring a fresh issue of ₹57.6 Cr and an OFS of ₹12.2 Cr. Price band: ₹171–₹180, minimum retail bite costs ₹2.73 lakh (2 lots). Opens July 29, closes July 31, listing slated for August 5. A mix of growth capital and promoter cash-out—choose your side.
2. Introduction
Textiles are back in vogue, and Kaytex wants you to invest in its weave. FY25 profits jumped 49%, and revenue crossed ₹153 Cr. But with margins that suddenly shine in a cutthroat segment, is this sustainable or a one-season wonder? The pricing? Not a thrift-store bargain.
3. Business Model – WTF Do They Even Do?
Kaytex is a fast-fashion textile maker with vertical integration:
- Digital Printing – flashy, custom fabrics.
- Jacquard & Dobby Weaving – trendy textures.
- Garments & Accessories – ready-to-stitch women’s wear, scarves, stoles.
They sell under “Rasiya”, “Kaytex”, “Darbaar-e-Khaas” and to bulk buyers. Think boutique meets mass-market.
4. Financials Overview
FY25 showed:
- Revenue: ₹153.2 Cr (+23%)
- PAT: ₹16.9 Cr (+49%)
- EBITDA: ₹30.1 Cr
- Net Worth: ₹50.1 Cr
Strong growth, double-digit margins—unusual for textiles.
5. What’s This Stock Worth?
- Pre-IPO P/E: 9.4x (EPS ₹14.7)
- Post-IPO P/E: 12.1x (EPS ₹14.9)
- Fair Value Range: ₹165–₹200.
Edu Punchline: Valuation’s not a rip-off, but the glamour may fade fast if margins shrink.
6. What-If Scenarios
| Scenario | Outcome |
|---|---|
| Listing frenzy | 20–25% pop possible |
| Flat market | Sticks around issue price |
| Margin compression | Stock deflates |
7. What’s Cooking (SWOT)
Strengths – Integrated operations, trendy product mix, strong ROE.
Weaknesses – Competitive market, margin sustainability in question.
Opportunities – Expansion with IPO funds, premium fabrics.
Threats – Raw material price swings, fast-fashion demand volatility.
8. Balance Sheet 💰
| (₹ Cr) | FY25 |
|---|---|
| Assets | 125.3 |
| Liabilities | 75.2 |
| Net Worth | 50.1 |
| Borrowings | 38.2 |
D/E at 0.76—healthy, but still levered.
9. Cash Flow (FY23–FY25)
| FY | Ops | Investing | Financing |
|---|---|---|---|
| 23 | Stable | Moderate | Debt funded |
| 24 | Stronger | Low capex | Debt up |
| 25 | Positive | Capex rising | IPO to ease |
Steady ops cash, but expansion burns capital.
10. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 40.4% |
| ROCE | 33.3% |
| PAT Margin | 11.1% |
| EBITDA Margin | 19.7% |
| D/E | 0.76 |
ROE is strutting the ramp, but may be overdressed.
11. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| 23 | 99.3 | 12.8 | 5.6 |
| 24 | 125.0 | 22.4 | 11.3 |
| 25 | 153.2 | 30.1 | 16.9 |
Revenue growing, profits doubling—glamorous.
12. Peer Comparison
| Company | P/E | ROE | Margin |
|---|---|---|---|
| Kaytex (Post) | 12x | 33.8% | 11% |
| Typical SME Textile | 8–10x | 18–22% | 5–7% |
Kaytex outshines peers, but pricing is above-average.
13. EduInvesting Verdict™
Kaytex Fabrics IPO offers growth, profitability, and a fashionable valuation. Integrated setup and strong ROE are attractive, yet margin durability is the elephant in the showroom.
Final Take: Stylish listing likely, but only investors who can handle fabric wrinkles should hold long term.
Written by EduInvesting Team | July 27, 2025
Tags: Kaytex Fabrics IPO, SME IPO, ₹69.81 Cr, Fast-Fashion Fabrics, EduInvesting Premium
