Sri Vishnu Shankar Mill Limited Unlisted Shares

Investment Overview

Sri Vishnu Shankar Mill Limited is an unlisted company operating in the Consumer Discretionary sector (Textiles). Sri Vishnu Shankar Mill Limited is an Indian textile company producing yarns and fabrics for apparel and home-textile applications. Public materials reference spinning and weaving operations, quality systems and a focus on consistent parameters for downstream processing. The company serves domestic …

Strengths

• High-Quality Production: The organization ensures superior yarn quality with Uster Machines, maintaining international standards and a competitive edge in the textile sector.
• Export Success: Export sales surged from ₹42.44 Cr in FY21 to ₹102.93 Cr in FY22, showcasing robust international industry demand.
• Robust Increase in Production & Sales: Achieved 39% production expansion and 61% sales growth in FY22, reflecting robust execution and increasing market demand.

Key Risks

• Volatility in Raw Material Costs: Fluctuating cotton prices influence returns margins, increasing costs and affecting Shree Vishnu Shankar Mills’ profitability.
• High Borrowings-to-Equity Ratio: A 1.39 debt-to-equity ratio indicates reliance on external financing, raising economic risk during sales downturns.
• Profitability Pressure: Gross margin reduction from 45.62% (FY22) to 35.47% (FY24) suggests rising costs and competitive domain pressures.

Valuation View

The current unlisted market price is ₹420.75 per share with a market capitalisation of approximately ₹64 crore. The company is currently unlisted and investors should factor in illiquidity risk and longer holding horizons. Investors are advised to review the full financial data and consult an advisor before investing.