Mr. Rohit Toshniwal, aged 62 Years, is the Promoter, Chairman & Whole-Time Director of the Company. He hold an experience of over 3 decades in the industry. He is a commerce graduate from University of Rajasthan and comes from a well-known family based at Kishangarh Rajasthan. With his straight forward and charismatic approach, he started his career in late 80’s with yarn trading at Madanganj Kishangarh. In 90’s he additionally entered into financing and real estate development on personal level. Mr. Norat Mal Choudhary, aged 74 years, is the Promoter & Managing Director of the Company. He hold an experience of over a two decade in the industry. He is a Civil Engineering from Government Polytechnic college, Ajmer and started his career with Irrigation Department of Rajasthan and gradually promoted to senior level and then took voluntary retirement in the year 2004. He shares good relationship and network in all the government departments and political fronts. Currently, he is looking after the overall performance of the company. Ms. Sadhana Toshniwal, aged 59 years, is the Non-Executive Director of the company she is having experiences of 15 years. She completed her schooling from Gujarat. Currently she is President of “Maheshwari Mahila Mandal” Kishangarh branch. At present, she is not actively involved in the day to day workings of the Company

Pariculares ( In Crore )	2020	2021	2022	11MFY23
Revenue from Operations	99	75	87	91
Other Income	0.02	0.05	0.02	0.03
Total Revenue	99	75	87	91
Cost of Materials Consumed	87	64	76	80
Change in Inventories	1.6	0.3	-1.8	-2.3
Employee Benefits Expense	1.9	1.7	2	2
Other Expenses	3	3	4.6	3
EBITDA	5.8	5.6	5.5	8
Depreciation & Amortisation	1.5	1.3	1.2	0.9
Finance Cost	3.9	3.8	3.8	3.3
EBIT	4.3	4.3	4.4	7.2
OPM (%)	5.85%	7.47%	6.38%	8.92%
PBT	0.4	0.4	0.6	3.9
Tax	0.11	0.11	0.14	1
PAT	0.3	0.3	0.4	2.9
NPM (%)	0.27%	0.43%	0.49%	3.17%
No.of Shares	1.31	1.31	1.31	1.31
EPS	0.21	0.24	0.32	2.19

 

 

Name of the Company	Revenue (In Crore)	PAT (In Crore)	EPS ( in Rs)	P/E	CMP	Mcap (In Crore)
Sahaj Fashions Limited	99	3	2.39	12.5	30	40
Arvind Limited	8,382	413	15.47	13.7	168	4,400
RSWM Limited	3,789	123	26.08	24.2	196	922
Vardhman Textiles Limited	10,137	805	27.50	17.8	369	10,672

* All the data is as per FY23.

Review and Recommendation of Sahaj Fashions SME IPO by IZ team is 3/10 1. Sahaj Fashions is  engaged in manufacturing of high standard fabric which is used for various purposes such as garments, home furnishings, and industrial applications, etc. They have expertise in manufacturing of primarily cotton suiting fabric and cotton shirting fabric apart from polyster based and cotton-polyster blended fabrics. 2."The company primarily procures cotton yarn from farmers and then converts it into fabric. They purchase this raw material from Rajasthan, Gujarat, Maharashtra, Punjab. After converting the yarn into fabric, they supply it in the B2B market. Later, their clients make products like shirts, pants, etc., and sell them in the market. In this process, since the raw material is cotton yarn, the company's margins are dependent on the price of cotton. If the price of cotton increases, it puts pressure on their margins." 3. "If we talk about the financials, in 2018, which is 6 years ago, their revenue was approximately 111 Cr, with an EBITDA of 9.96 Cr (8.9%) and PAT of 2.94 Cr (2.6%). Then, if you look at their performance in 2022, the revenue was approximately 87 Cr, with an EBITDA of 5.5 Cr (6.38%) and PAT of 40 lakh (0.5%). So, if we observe, there hasn't been any growth in the last 5-6 years, and the margins have also decreased." 4. "If you look at their balance sheet, you will find out that as of 28.02.2023, the total debt on the books was ~40 Cr and the Net-worth was 18 Cr. So, the debt-to-equity (D/E) ratio is 2.22x, which is very high." 5. "The total size of the IPO is ~13.42 Cr. If you deduct the Lead Manager (LM) and other expenses, the net amount comes to 12.82 Cr. Out of this, ~6 Cr is for working capital, ~4 Cr for debt repayment, and ~2 Cr for general corporate expenses. Apart from this, the promoter is also selling some shares from which they will receive ~52 lakh." 6. "The IPO is being introduced at a Price-to-Earnings (P/E) ratio of 12x and a market capitalization (Mcap) of 40 cr, which looks fully priced in."

Sahaj Fashions Limited Shree Bhawan, Ajmer Road, Madanganj, Kishangarh - 305801 Phone: +91 9462788792 Email: cfo@sahajfashions.in Website: https://sahajfashions.in/