1. At a Glance
Once a modest knitwear and fabric player, Suditi Industries has pulled a high-stakes makeover. Acquiring the iconic (and once forgotten) Gini & Jony, launching aggressive preferential issues, and showing off a freakish 132% ROE — this ₹292 Cr cap company is now strutting the SME ramp like it’s Paris Fashion Week.
2. Introduction with Hook
Imagine a company that went from bleeding cash to stitching together one of the most jaw-dropping comebacks in the textiles sector.
Now add some Bollywood drama: a forgotten kidswear brand (Gini & Jony), a flurry of preferential issues, and an earnings resurrection worthy of a Netflix docuseries.
- 446% stock price CAGR in 1 year.
- ₹3.14 Cr FY25 Net Profit, after years in red.
- ROE: An insane 132%. ROCE: A clean 29.66%.
Still think all textile companies are “boring”?
3. Business Model (WTF Do They Even Do?)
Core Operations:
Suditi Industries is a vertically integrated textiles company doing:
- Knitting: 2,000 tons/annum of various knit types.
- Dyeing: 12 tons/day capacity working with cotton, viscose, polyester blends.
- Printing: Reactive, Disperse, Pigment & more.
- Finishing: From softener to stink-proofing (literally).
- Garmenting: 6,000 garments/day — men, women, kids.
Retail Angle: Now owns Gini & Jony, hoping to revive it via D2C and retail formats. Think of it as FabIndia meets nostalgia.
4. Financials Overview
| Metric | FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Revenue (Cr) | 95.28 | 67.04 | 101.76 | 103.06 |
| EBITDA (Cr) | 3.67 | -11.93 | -26.22 | -22.25 |
| PAT (Cr) | 3.14 | -11.82 | -17.58 | -35.05 |
| EPS (Rs) | 0.79 | -4.48 | -6.67 | -12.84 |
| ROE | 132% | Negative | Negative | Negative |
The turnaround smells real — finally.
5. Valuation
- CMP: ₹73.6
- EPS (FY25): ₹0.79
- P/E: 92.9 (yes, that’s a nosebleed)
- Book Value: ₹6.56 → Price to Book = 11.2x
Fair Value Range Estimate:
| Method | Valuation |
|---|---|
| P/E of 30x on FY26E EPS (₹2.5) | ₹75 |
| P/BV of 5x on BV ₹12 | ₹60 |
| DCF (assuming FY25 cash flows sustain) | ₹70–₹90 |
FV Range: ₹60 – ₹90
(Current price is hovering in the upper zone. You’re already paying for the comeback story.)
6. What’s Cooking – News, Triggers, Drama
- Gini & Jony Acquired: ₹18.5 Cr deal, announced May 2025. Mass retail revival play.
- Rs.36 Cr Raised via Preferential Issues
- Rs.8.98 Cr fresh issue in June 2025 — war chest loaded.
- Capacity being upgraded in garmenting segment.
- High promoter churn alert: promoter holding fell from 71.68% to 57.81% in 1 quarter.
Also, if you sneeze, there might be another share allotment announcement coming.
7. Balance Sheet
| Item | FY25 (Cr) |
|---|---|
| Equity Capital | 39.62 |
| Reserves | -13.62 |
| Borrowings | 7.82 |
| Other Liabilities | 58.15 |
| Total Liabilities | 91.97 |
| Fixed Assets | 29.24 |
| Other Assets | 62.71 |
Key Points:
- Reserves still negative — this ain’t a cleaned-up balance sheet yet.
- Massive dilution has masked some sins.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | -3.19 | 12.99 | -10.13 | -0.33 |
| FY24 | 1.03 | 0.56 | -1.61 | -0.02 |
| FY25 | -23.62 | -20.29 | 44.77 | +0.86 |
Observations:
- Cash burn in ops — probably due to working capital surge.
- Fundraising is the lifeboat.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 29.66% |
| ROE | 132% |
| Debtor Days | 157 |
| Inventory Days | 43 |
| CCC (Days) | 56.87 |
| Working Capital Days | 19 |
| Debt-to-Equity | 0.2x |
Verdict:
Operationally leaner but debtors still partying late.
10. P&L Breakdown – Show Me the Money
| Metric | FY25 |
|---|---|
| Sales | ₹95.28 Cr |
| EBITDA | ₹3.67 Cr |
| EBITDA Margin | 3.85% |
| Net Profit | ₹3.14 Cr |
| PAT Margin | 3.3% |
| Other Income | ₹1.82 Cr |
Other income plays a big role — this is not pure operating profit yet.
11. Peer Comparison
| Company | CMP | P/E | ROCE | ROE | Sales (Cr) | PAT (Cr) |
|---|---|---|---|---|---|---|
| KPR Mill | ₹1200 | 51.4 | 19.8% | 17.0% | ₹6387 | ₹797 |
| Trident | ₹31 | 43.6 | 9.5% | 8.3% | ₹6987 | ₹370 |
| Garware Tech | ₹911 | 39.1 | 24.7% | 18.7% | ₹1540 | ₹231 |
| Suditi | ₹73.6 | 92.9 | 29.7% | 132% | ₹95 | ₹3.14 |
Conclusion: Suditi is the penny stock that’s suddenly flexing next to giants. But scale matters — it’s still a boutique in a world of malls.
12. Miscellaneous – Shareholding, Promoters
- Promoters: Down from 71.68% to 57.81%.
- Public: 42.2% (up nearly 14%)
- 6,470 shareholders — uptrend, thanks to buzz.
Potential red flag: Promoters cashing out while raising fresh capital — hmm.
13. EduInvesting Verdict™
Suditi is currently dressed like a supermodel post-makeover — bold lipstick (Gini & Jony), new outfit (fresh equity), and better posture (positive EPS). But that doesn’t erase the scars underneath — a negative reserve base and a history of operating losses.
Yet, the company now has:
- A real brand
- A clear retail vision
- And the funding to attempt something bold
Just remember: Fashion fads can fade. This turnaround better not be stitched with hopes alone.
Metadata
Written by EduBot | 13 July 2025
Tags: textiles, turnaround, GiniJony, SME, preferential-issue, suditi, kidswear, BSE
