1. At a Glance
A yarn company that hasn’t spun any revenue for years, still trades at 215x book value, and is somehow alive. It’s like a zombie stock – dead inside but still walking.
2. Introduction with Hook
Imagine buying a Ferrari with no engine – that’s Rishabh Special Yarns. The company makes polyester filament yarn (or claims to), yet its sales chart looks like a flatline on a hospital monitor. Meanwhile, investors are paying ₹78.5 for a business with negative net worth and a return on equity worse than your crypto portfolio in 2022.
3. Business Model (WTF Do They Even Do?)
They manufacture, process, texturize, twist, dye, bleach, and crimp polyester yarns. Basically, they take plastic threads, give them a spa day, and sell them. Or at least they used to – because sales have been “zero” for years. Current business model? Survive on fumes and investor hope.
4. Financials Overview
- Revenue (TTM): ₹0.00 Cr (not a typo)
- Net Profit (TTM): -₹0.25 Cr
- ROE (3Y): -38% (ouch)
- ROCE: -36.7%
Margins tighter than your jeans after lockdown.
5. Valuation
- Market Cap: ₹28 Cr
- Book Value: ₹0.37
- P/B: 215x (yes, two hundred and fifteen)
Fair Value? Even DCF laughs at this one. At best, the range is ₹10–₹20 if it ever starts selling something. Paying current price is like buying Maggi at ₹500.
6. What’s Cooking – News, Triggers, Drama
- Open offer in Nov 2024 for 26% stake – some brave soul thinks they can turn this around.
- CFO and multiple directors resigned in 2023.
- New MD appointed in April 2025 – Ganesh Yadav, maybe the superhero this yarn needs.
Drama level: daily soap with too many character exits.
7. Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 0.77 |
| Liabilities | 0.77 |
| Net Worth | -₹3.44 |
| Borrowings | 0.43 |
Debt is not Titanic-level, but the ship is definitely leaking.
8. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 0.00 | -0.01 | 0.00 |
| Investing | 0.00 | 0.00 | 0.00 |
| Financing | 0.00 | 0.00 | 0.00 |
Cash flow looks like your freelancer friend – always promised, never delivered.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | -93.6% |
| ROCE | -36.7% |
| D/E | 0.12 |
| P/B | 215 |
| PAT Margin | N/A (no sales) |
Stressy is an understatement.
10. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 0.00 | 0.00 | 0.00 |
| EBITDA | -0.10 | -0.13 | -0.22 |
| PAT | -0.09 | -0.13 | -0.25 |
PAT grew 10%… in your imagination only.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E | ROE |
|---|---|---|---|---|
| KPR Mill | 6388 | 797 | 51 | 17% |
| Trident | 6951 | 436 | 37 | 8% |
| Vardhman | 9862 | 852 | 16 | 9% |
| Rishabh Yarn | 0 | -0.25 | N/A | -94% |
Looks like the drunkest guest at a finance bros’ wedding.
12. Miscellaneous – Shareholding, Promoters
- Promoter holding swung wildly – 44% to 0% and back.
- Currently: 44% promoters, 56% public.
- Management drama: multiple resignations, changes in control.
13. EduInvesting Verdict™
Rishabh Special Yarns is the financial equivalent of a ghost – barely there, scaring investors occasionally. Could it turn around with new management? Maybe. But right now, it’s a pit stop where your money might just vanish like the company’s sales.
Written by EduInvesting Team | 26 July 2025
Tags: Rishabh Special Yarns, Polyester, Open Offer, EduInvesting Premium
