On its third day, Shree Karni Fabcom Limited’s IPO witnessed an overwhelming response, with the issue being subscribed a staggering 275.78 times. This impressive figure reflects immense investor confidence and demand, significantly exceeding initial expectations. The high subscription rate shows strong market interest and positions the company positively in the public domain, highlighting its potential for future growth and success.
Shree Karni Fabcom Limited – Fundamental Analysis
Shree Karni Fabcom Ltd’s IPO showcases impressive financials with significant revenue and equity growth, indicating strong market demand and investor trust. Revenue surged over threefold from ₹3,287.42 lakhs to ₹12,694.65 lakhs from FY2021 to FY2023, while equity nearly quadrupled. Despite fluctuations, profitability remains high, with a notable peak in return on net worth at 38.96% in FY2022. Total assets more than tripled, reflecting substantial business expansion, with reduced liabilities indicating improved financial stability and effective debt management.
Shree Karni Fabcom Limited – Risks And Challenges
Shree Karni Fabcom’s IPO exposes risks due to its limited dyeing operating history, complicating investor assessment. Reliance on the top 5 customers, accounting for 60% of revenue, and Maharashtra’s significant contribution of 51% revenue pose potential threats to revenue stability. Any decline in sales from key customers or adverse developments in Maharashtra could adversely affect business performance and operational outcomes, warranting careful consideration from investors.
