Kalahridhaan Trendz Ltd IPO - Review, Valuation, Date & GMP

Kalahridhaan Trendz IPO - Complete Overview

Kalahridhaan Trendz Ltd, established in 2016, specialises in manufacturing dyes and processing textiles, focusing on embroidery, trading, and printing for B2B sales. Operating in Ahmedabad, Gujarat, it has a production capacity of 1.00 lakh meters per day across 1.50 lakh square feet. With 12 full-time employees, it offers a range of textile processing services, including dyeing, printing, and finishing.

The company's Embroidery and Knitting unit produces 15,000 meters per day, focusing both in-house and outsourced production. Expanding into dyeing and printing in 2018, it provides a comprehensive suite of services under one roof.

Kalahridhaan Trendz operates through two segments:

1- Embroidery Knitting.

2- Cloth Dyeing and Printing. 

It ensures quality at every stage, from procurement to production, with multiple quality control measures. In short , Kalahridhaan Trendz Pvt Ltd is a leader in the textile industry, known for innovation, quality, and customer satisfaction in the B2B market.

 

 

Kalahridhaan Trendz IPO Overview

Kalahridhaan Trendz IPO date is slated to be open for subscription from February 15, 2024, to February 20, 2024. This NSE SME IPO follows a Fixed Price Issue IPO.

Kalahridhaan Trendz IPO price is fixed at Rs. 45 per share. 

The total issue size of this IPO amounts to Rs.22.49 CR. The company has reserved 50% for the retail investors and 50% for the other investors. 

 

 

Kalahridhaan Trendz IPO timetable (Tentative)

Events	Date
IPO Opening Date	15 February 2024
IPO Closing Date	20 February 2024
IPO Allotment Date	21 February 2024
Refund initiation	22 February 2024
IPO Listing Date	23 February 2024

 

Kalahridhaan Trendz IPO Details

IPO Opening & Closing Date	15 February to 20 February 2024
Face value	Rs.10 per share
Issue Price	Rs.45 per share
Lot Size	3000 Shares
Price of 1 lot	Rs.1,35,000
Total Issue Size	4,998,000 shares (aggregating up to Rs.22.49 Cr)
Fresh issue	4,998,000 shares (aggregating up to Rs.22.49 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

Kalahridhaan Trendz IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	3,000	Rs.1,35,000
Maximum Lot Investment (Retail)	1 lot	3,000	Rs.1,35,000
Minimum Lot Investment (HNI)	2 lot	6,000	Rs.2,70,000

 

Kalahridhaan Trendz IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

 

Company Financial

Company financials show varied trends with increases in most categories from FY22 to FY23.

(Amount in Lakhs)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	10,979.30	10,962.55	10,297.94
Total Revenue	8,434.54	18,417.01	18,390.46
PAT	478.72	666.01	246.20
Net worth	2,290.94	1,202.78	536.77
Reserve & Surplus	1,072.04	1,202.78	536.77
Total Borrowings	6,702.43	6,105.33	5,249.90

 

Revenue Distribution Product-Wise

The majority of Revenue comes from Printed Clothes, with a portion from Embroidery Clothes.

(in % age)

Particulars	Jun 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Embroidery cloths	33.95	34.92	34.04
Printed Cloths	66.05	65.08	65.96
Total Revenue from Operations	100%	100%	100%

Revenue Distribution State-Wise

Gujarat leads the Revenue distribution followed by other states.

(in % age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Gujarat	96.92	93.37	85.88
Delhi	0.50	1.15	1.15
Maharashtra	1.08	0.42	0.49
Punjab	-	0.98	2.67
Rajasthan	-	0.17	3.35
Tamil Nadu	0.18	0.04	0.30
Uttar Pradesh	1.14	3.62	5.92
West Bengal	0.18	0.25	0.24
Total	100%	100%	100%

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Working capital requirement

• General Corporate Purpose, and

• Meeting Public Issue Expenses.

 

 

Promoters and Management of Kalahridhaan Trendz IPO

1. Niranjan Agarwal.

2. Aditya Agarwal.

3. Sunitadevi Agarwal

Pre-issue Promoter Shareholding	96.22%
Post-issue Promoter Shareholding	68.24%

 

Kalahridhaan Trendz IPO Lead Managers

•  Interactive Financial Services Ltd

 

Peers of Kalahridhaan Trendz IPO

Kalahridhaan Trendz IPO offers a lower P/E ratio and EPS compared to its peers.

Name of the Company	Face value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Kalahridhaan Trendz Limited	10	8.24	5.46
Spl Industries Ltd.	10	9.03	8.22
Kitex Garments Ltd.	1	26.08	8.94
Monte Carlo Fashions Ltd	10	10.84	64.03

 

Evaluation

The IPO is priced within the range of Rs. 45 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 10.93 from the last year, the resulting P/E ratio is 4.12x.

- Taking into account the weighted EPS of Rs 7.11 for the last three years, the P/E ratio amounts to 6.32x.

    

Comparative Analysis with Listed Peers:

- Highest P/E ratio among listed peers: 22.87x

- Lowest P/E ratio among listed peers: 8.65x

- Industry average P/E ratio: 14.28x

 

As a result, the IPO price range, with a P/E ratio ranging from 4.12x to 6.32x, seems undervalued in comparison to the industry average of 14.28x.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

• Prime Location of our manufacturing Unit

• Unique kind of product

• Manufacturing high-demand products, establishing brand presence.

• Experience Promoters and Team

 

IPO's Weaknesses

• Company doesn't own its registered office

• Top buyers and suppliers contribute majority of revenue and raw material

• No long-term agreements with customers or suppliers

• Loss of customers or decrease in orders may impact revenue

• Litigations could negatively affect financial condition

• Instances of delayed GST and TDS returns

• Business depends on manufacturing facilities

• Risks include unplanned slowdowns and disruptions in operations

 

 

IPO GMP Today

The Latest GMP of Kalahridhaan Trendz IPO is Rs.3.

 

Conclusion

Kalahridhaan Trendz Limited presents itself as a promising prospect in the textile industry with its diversified offerings and a focus on quality and innovation. The IPO, priced attractively at Rs. 45 per share, offers investors an opportunity to participate in the growth journey of the company. 

However, it's essential for investors to carefully consider the risks associated with the company, including dependencies on key customers and suppliers, potential litigations, and operational disruptions. Despite these risks, the IPO appears undervalued when compared to industry peers, which could present a favourable investment opportunity for discerning investors.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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