Shree Ram Twistex IPO – Review

• IPO GMP
• IPO Review
• IPO Allotment
• IPO Listing Estimate

About the Company
Shree Ram Twistex Ltd. is a Gujarat-based cotton yarn manufacturer operating from Gondal, Rajkot, with a strong presence in spinning and value-added yarn products. The company produces compact ring spun and carded yarns used across denim, home textiles, garments and industrial fabric segments. It operates a fully integrated spinning infrastructure with 27,744 spindle capacity supported by modern compact ring-spinning machines. The business follows a B2B model supplying textile manufacturers, exporters and bulk buyers across domestic and international markets. The company is also investing in captive renewable power projects to improve long-term cost efficiency and operational margins.

Financials and Key Parameters

Financials (Rs. crore – Restated)

Key Performance Indicators (KPI)

Peer Comparison & Plus Points / Minus Points

Peer Comparison (Qualitative)
Shree Ram Twistex operates in the cotton yarn and spinning segment where listed peers typically include textile spinning and yarn manufacturing companies. Compared with larger integrated textile exporters, the company remains relatively small in scale but benefits from focused spinning operations and value-added yarn offerings. Financially, margins and return ratios appear moderate, broadly in line with mid-sized spinning companies where profitability depends heavily on cotton prices and export demand cycles.

Plus Points
• Integrated spinning infrastructure with modern machinery and strong production base.
• Expansion into solar and wind captive power could improve long-term cost efficiency.
• Diversified yarn product portfolio including compact and value-added yarns.
• Long-standing B2B relationships and stable customer base.

Minus Points
• Textile industry cyclicality and dependence on cotton price fluctuations.
• Moderate return ratios compared to high-value textile exporters.
• Margin volatility due to raw material and demand swings.
• Sector currently witnessing low market “fancy,” which may impact IPO valuation sentiment.

Industrial Scenario
India’s textile and yarn industry remains an important export-oriented sector benefiting from global sourcing diversification and domestic manufacturing initiatives. Demand for value-added yarns continues to grow with increasing textile exports and technical fabric usage. However, the sector is highly cyclical, influenced by cotton price movements, global demand trends and currency fluctuations. While long-term structural demand remains intact, near-term investor sentiment toward yarn and spinning companies remains relatively subdued.

Conclusion – Chanakya IPO Review
Shree Ram Twistex IPO provides exposure to the cotton yarn manufacturing value chain with integrated infrastructure and renewable energy expansion plans. Financial performance shows steady growth, though margins and return ratios remain moderate. Considering the current low “fancy” for yarn and textile stocks in the market, listing valuations and short-term gains may remain limited. The IPO appears more suited for investors with a medium-to-long-term textile sector perspective rather than aggressive listing gain expectations.