Sanathan Textiles IPO: The good and the bad

Published: 18th Dec 2024

By: Value Research

About Sanathan Textiles

Sanathan Textiles is a textile manufacturer. The company supplied yarns to over 1,500 customers in FY24. Some of its prominent clientele include Welspun, Premco Global, Page, etc.

IPO details

Post-IPO

Financial history

EBIT is earnings before interest and taxes PAT is profit after tax

Key ratios

ROE is return on equity ROCE is return on capital employed

The good

The company has long-standing relationships with reputed consumer brands such as Welspun India, Techno Sportswear, Page Industries, D'Décor Home Fabrics, Siyaram Silk Mills, etc. It has also been associated with its top 10 customers for over a decade.

The bad

Factors like geographical concentration (in terms of revenue) and high reliance on a handful of clients can hinder the company’s growth prospects.

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