1. At a Glance
A formalwear player that went from boutique sales to ₹161 Cr in FY25. Sharp shirts, sharper numbers—Thomas Scott (India) Ltd (TSIL) stitched a 71% 3-year sales CAGR, and now struts with a P/E of 42. But is the fashion sustainable, or just seasonal?
2. Introduction with Hook
Imagine if your boring uncle’s shirt brand suddenly went from clearance rack to catwalk—Thomas Scott is that underdog.
- 3Y Profit CAGR: 176%.
- FY25 Sales: ₹161 Cr (FY14: ₹49 Cr).
This is not your average textile tale. It’s a suit-and-sling growth sprint in a sector known for stitched margins and cutthroat pricing.
3. Business Model (WTF Do They Even Do?)
Thomas Scott (India) Ltd operates in the garments and apparel segment with focus on:
- Premium Men’s Formalwear & Casualwear
- Business shirts, semi-formals, and customized orders
- Multi-brand retail footprint
- Design, manufacturing, and B2B/B2C distribution
While they look and sound like a Raymond 2.0, their model’s got a bit of an Alibaba-meets-Arvind tilt—some stock, some fabric trading, some white-label tie-ups.
4. Financials Overview
3-year Growth? Fab.
- Sales: ₹32 Cr (FY22) → ₹161 Cr (FY25)
- EBITDA: ₹13 Cr → ₹19 Cr
- PAT: ₹1 Cr → ₹13 Cr
- Margins: 12% OPM, 8.1% NPM
That 5x topline growth ain’t window dressing—this is real retail muscle.
5. Valuation
- Current Price: ₹366
- EPS FY25: ₹10.11
- P/E: ~42
- Book Value: ₹83.7
- Fair Value Range (EduEstimate™): ₹240 – ₹420
Based on 25x–40x normalized earnings and sector P/E compression.
It’s no bargain bin stock, but the valuation is not absurd either—retail rerating + margin consistency is the unlock.
6. What’s Cooking – News, Triggers, Drama
- 🔥 Price rally drew SEBI’s attention (Clarifications in Jun-Jul 2025)
- 🪙 Zero dividend despite ₹13 Cr PAT
- 📉 Promoter holding slipped from 69.6% to 52.2% in a year
- 📈 ROCE remains a healthy 20.3%
So… big moves, but a slight fragrance of dilution in the air?
7. Balance Sheet
| Particulars (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 6 | 10 | 13 |
| Reserves | 8 | 41 | 93 |
| Borrowings | 5 | 6 | 13 |
| Total Liabilities | 68 | 69 | 141 |
| Fixed Assets | 4 | 8 | 12 |
Key Points:
- Leverage rising, but well-supported by equity expansion.
- Asset-light strategy visible—working capital is the real stress zone.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Change |
|---|---|---|---|---|
| FY23 | -₹18 | -₹7 | ₹25 | ~0 |
| FY24 | -₹8 | ₹2 | ₹6 | ~0 |
| FY25 | -₹39 | -₹6 | ₹45 | ~0 |
Key Points:
- Operating cash is bleeding even as PAT grows—working capital monster alert
- All expansion funded via fresh equity or debt
9. Ratios – Sexy or Stressy?
| Metric | FY24 | FY25 |
|---|---|---|
| OPM % | 14% | 12% |
| ROCE | 31% | 20% |
| ROE | 31% | 16% |
| Debtor Days | 98 | 131 |
| Inventory Days | 172 | 227 |
| Cash Conversion | 206 | 294 |
Analysis:
That 294-day CCC is a giant elephant in their showroom. Inventory + receivables clog the pipes. Margin compression + cash stress = needs fixing fast.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | OPM % | PAT (₹ Cr) | EPS |
|---|---|---|---|---|
| FY22 | 32 | 4% | ₹1 | 1.14 |
| FY23 | 62 | 8% | ₹3 | 4.53 |
| FY24 | 90 | 14% | ₹10 | 10.23 |
| FY25 | 161 | 12% | ₹13 | 10.11 |
Takeaway:
A legit multi-year uptrend. EPS grew 10x in 3 years—small cap investors dream scenario.
11. Peer Comparison
| Company | Sales (Cr) | PAT (Cr) | ROCE % | P/E |
|---|---|---|---|---|
| Page Industries | 4,935 | 729 | 59.4 | 74.6 |
| Arvind Ltd | 8,328 | 353 | 12.5 | 25.1 |
| Pearl Global | 4,506 | 220 | 22.1 | 32.2 |
| Thomas Scott | 161 | 13 | 20.3 | 42.2 |
Insight:
TSIL’s scale is microscopic, but profit growth and return ratios put it in the big leagues. The only difference? These guys don’t (yet) own hoardings across Bandra.
12. Miscellaneous – Shareholding, Promoters
| Category | Sep ’22 | Mar ’24 | May ’25 |
|---|---|---|---|
| Promoters | 61% | 55.5% | 52.2% |
| FIIs | 0% | 0.84% | 0.72% |
| DIIs | 0% | 2.33% | 2.01% |
| Public | 39% | 41.2% | 45.06% |
Observations:
- Promoter offloading could be profit booking… or long-term dilution.
- DII interest rising (that’s a green flag).
13. EduInvesting Verdict™
Thomas Scott is a textbook example of a microcap apparel firm that got its act together. The numbers are growing faster than your Diwali shopping bill—but watch that working capital cash trap. Promoter dilution and CCC spike are the dark lining under this sharply cut shirt.
This isn’t just a textile play. It’s a profitability redemption arc.
Metadata
– Written by EduInvesting Research | 15 July 2025
– Tags: Apparel, Microcap, Turnaround, Cash Flow Crunch, Promoter Dilution, ROCE Growth
