On the third day of the Kalahridhaan Trendz Limited IPO, investor interest was robustly reflected in the subscription status, with the issue being subscribed 3.01 times. This strong demand from investors shows a high level of confidence in the company’s potential and future prospects, underscoring the attractiveness of Kalahridhaan Trendz Limited as an investment opportunity in its market sector.
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Kalahridhaan Trendz Limited IPO – Fundamental Analysis
Kalahridhaan Trendz Ltd IPO shows promising financials, with a slight revenue increase from ₹18,390.14 lakhs to ₹18,416.85 lakhs between 2022 and 2023, reflecting consistent market demand. The company’s equity nearly doubled from ₹899.96 lakhs to ₹1,812.23 lakhs in the same period, indicating robust investor trust and efficient earnings reinvestment.
Profitability-wise, Kalahridhaan Trendz Ltd achieved a notable rise in profit after tax from ₹110.54 lakhs in 2021 to ₹666.01 lakhs in 2023, demonstrating operational effectiveness and increased profitability. The RoNW surged from 12.28% to 36.75%, with a significant rise in Diluted EPS from ₹1.81 to ₹10.93, underscoring the company’s growing earnings capability and asset growth, while maintaining stable liabilities.
Kalahridhaan Trendz Limited IPO Risks And Challenges
Kalahridhaan Trendz Ltd faces significant risk due to its reliance on a small group of top customers and suppliers, with two-thirds of its revenue coming from its top 10 customers. This dependence makes the company vulnerable to major impacts on revenue and profit if any key customer relationship changes.
The company also depends heavily on its top 10 suppliers for purchases, posing a risk to its supply chain. Additionally, its manufacturing facilities are susceptible to unexpected slowdowns and shutdowns, potentially harming its operations, financial stability, and cash flow.
