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 market.
• Export Success: Export sales surged from ₹42.44 Cr in FY21 to ₹102.93 Cr in FY22, showcasing strong international industry demand.
• Robust Growth in Production & Sales: Achieved 39% production progress and 61% sales expansion in FY22, reflecting strong processes and increasing industry demand.

Key Risks

• Volatility in Raw Material Costs: Fluctuating cotton prices impact income margins, increasing costs and affecting Shree Vishnu Shankar Mills’ profitability.
• High Liabilities-to-Equity Ratio: A 1.39 obligations-to-equity ratio indicates reliance on external financing, raising economic vulnerability during sales downturns.
• Profitability Pressure: Gross margin decline from 45.62% (FY22) to 35.47% (FY24) suggests rising costs and competitive marketplace 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.