Shree Ram Twistex IPO Review: Textile Player Turning Green Energy Story
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TL;DR
- IPO priced at ₹95–104 values the company at about 29–30x earnings.
- Revenue and profit show steady growth with improving margins.
- Green energy capex may support cost savings and long term efficiency.
- Valuation appears fully priced, limiting short term upside.
Shree Ram Twistex IPO Review: Textile Player Turning Green Energy Story
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The Shree Ram Twistex IPO Review is attracting investor attention because it combines two themes markets like right now: manufacturing growth and renewable energy integration. Textile companies are cyclical by nature, but firms that reduce costs through captive power often gain a competitive edge.
So the key question investors are asking is simple. Is this IPO worth subscribing to, or should you stay cautious?
Let’s examine the fundamentals, valuation, risks, and outlook in detail.
About the Company
Shree Ram Twistex Limited is a Gujarat based cotton yarn manufacturer incorporated in 2013. It operates a manufacturing facility in Gondal, Rajkot and produces compact ring spun yarn and carded yarn in both combed and carded varieties.
Its product portfolio also includes value added yarn such as Eli Twist yarn, compact slub yarn, and Lycra blended yarn used in denim, towels, shirting, home textiles, and industrial fabrics.
The company primarily follows a B2B model supplying institutional buyers including textile manufacturers and garment exporters.
IPO Details Investors Should Know
Here are the key issue facts explained simply:
- Price band is ₹95 to ₹104 per share.
- Minimum lot size is 144 shares.
- Total IPO size is about ₹110 crore.
- Shares will list on the BSE and NSE.
- Issue opens February 23, 2026 and closes February 25, 2026.
- Tentative listing date is March 2, 2026.
Allocation breakup
- QIB portion 75 percent
- NII portion 15 percent
- Retail portion 10 percent
Lower retail allocation often means limited listing liquidity for individual investors.
Financial Performance Snapshot
The company’s numbers show steady growth:
- Total income increased from ₹213.58 crore in FY23 to ₹231.72 crore in FY24 and ₹256.32 crore in FY25.
- Net profit rose from ₹2.05 crore in FY23 to ₹6.55 crore in FY24 and ₹8.00 crore in FY25.
- Net worth improved from ₹61.11 crore to ₹74.03 crore across three years.
- EBITDA margin remained stable around 8 to 9 percent.
Margins are modest because textile manufacturing is a competitive, price sensitive industry. Still, steady improvement signals better cost control and operational discipline.
Why the Green Energy Shift Matters
A major highlight of this IPO is the company’s plan to invest in renewable power for captive consumption:
- 6.1 MW solar power plant
- 4.2 MW wind power plant
Electricity is one of the biggest costs for spinning mills. By generating its own power, the company could reduce operating expenses and protect margins from energy price volatility.
For example, several textile companies that installed captive renewable power have historically reported better cost stability during periods of rising electricity tariffs. If executed efficiently, this strategy can strengthen profitability over time.
Strengths That Support the Business
Scale expansion
Production capacity has increased to about 9,855 MT per annum, improving efficiency and cost leverage.
Operational track record
The company reports no history of strikes, lockouts, or major disruptions.
Experienced promoters
Management has strong textile industry experience, which is crucial in a cyclical sector.
No accumulated losses
This indicates financial stability and disciplined capital management.
Risks Investors Should Consider
No IPO is risk free, especially in manufacturing.
Customer concentration risk
The company depends heavily on a few large customers for revenue.
No long term contracts
Orders are received on a purchase order basis, which reduces revenue visibility.
No dividend history
The company has not declared dividends in the past and does not have a formal dividend policy.
Technology upgrade risk
Textile machinery requires periodic upgrades, which can increase capital expenditure.
Valuation Check
The IPO is valued at roughly 29 to 30 times earnings.
Its pre IPO EPS stands at ₹2.72 with a P/E near 38.21.
Compared with listed textile companies such as Ambika Cotton Mills Limited, Damodar Industries Limited, and Rajapalayam Mills Limited, the valuation appears relatively expensive.
This suggests that much of the expected growth is already factored into the issue price.
Market Perspective
The textile sector in India is highly cyclical and influenced by global demand, cotton prices, and export trends. When global apparel demand slows, spinning mills often face pricing pressure.
However, companies that focus on efficiency and energy optimization tend to outperform peers during downturns. Shree Ram Twistex’s renewable energy strategy could help it stand out if execution remains strong.
Investor Suitability
This IPO may be suitable for:
- High risk investors
- Long term investors willing to wait for growth
- Investors interested in manufacturing plus green energy themes
It may not suit conservative investors or those seeking quick listing gains because the valuation leaves limited margin of safety.
Expert Verdict
The Shree Ram Twistex IPO Review indicates a cautious stance.
Positives
- Improving financial performance
- Green energy integration
- Strong operational track record
Concerns
- Premium valuation
- Cyclical industry risks
- Low retail allocation
Overall view: Avoid for conservative or short term investors. Consider only if you have a long term horizon and high risk appetite.
FAQs
Is Shree Ram Twistex IPO good for listing gains?
It appears unlikely because the valuation already factors in future growth expectations.
What is the minimum investment amount?
One lot of 144 shares at ₹104 equals about ₹14,976.
What makes this IPO unique?
Its plan to install captive solar and wind power plants to reduce costs.
Is the company profitable?
Yes. Net profit increased steadily to ₹8 crore in FY25.
What is the biggest risk?
Dependence on a few customers and lack of long term contracts.
Final Thoughts
Shree Ram Twistex presents an interesting story of a traditional textile manufacturer evolving into a more efficient, energy optimized business. While fundamentals show improvement, valuation leaves little room for error. Investors should approach carefully and align decisions with their risk tolerance.
For detailed IPO analysis, advanced research tools, and seamless investing experience, Swastika Investmart Limited offers a reliable platform backed by SEBI registration, powerful analytics, strong customer support, and investor education resources.
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