Saraswati Sadi Depot is a Saree /textile wholesaler from Gandhinagar, Kolhapur, Maharashtra.
IPO is open for public now, between 12 and 14th August.
I am a apparel / textile businessesman and I know this firm since last 15 years. We are dealing with them since last 20 years.
Does anybody know any insights regarding the IPO?
I know the promoters personally, they are very honest and professional.
But valuation is very steep.
They have sale of Rs 600+ cr and they are almost asking for similar valuations.
Their have already penetrated their core market, Maharashtra - Goa - Karnataka. It would be difficult for them to move to new market which are at long distance from their headquarters.
So does anyone know how to value them?
There was no thread about this on this forum, that’s why creating new thread.
Moderator, please remove or subcategories this if I have posted wrongly.
You were right about the steep valuations (almost 50% down from IPO issue price), and about the difficulty in growth (sales have been stagnant over past 3 years).
Some more red flags from FY25:
Ballooning inventory days on flat sales - from 64 days in FY23 to 86 days in FY25
Low cash conversion due to growing WC requirement (2.5 crs CFO on 46 crs EBIDTA)
Dividend of 8 crs funded from IPO proceeds (as cash accruals were insufficient)
Increasing investment in Partnership firm - Saraswati Saree Depot Ahmednagar
