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RECOMMENDATION

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RATING

RECOMMENDATION

Strong Sell

Business Type

Traditional Business

  • unlisted stock logo
    Maharja Shree Umaid Mills Unlisted Shares Essentials

Discover and get complete analysis on Reliance Retail upcoming IPO unlisted shares - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and latest updates.

ISIN

INE087D01013

Face Value

₹10.00

Total Share

5,70,12,155

Total Income

₹402.34 Cr

Profit After Tax

-₹7.65 Cr

Promoter Holding

98.50 %

EPS

-₹1.34

P/E

-70.15

P/B

94.00

Market Capitalisation

₹535.91 Cr

Intrinsic Value

₹27.58

Sector

Consumer Discretionary

Sub-sector

Apparel & Accessories

Cashflow - Operations

₹62.19 Cr

Cashflow - Financing

-₹35.79 Cr

Maharja Shree Umaid Mills Growth

Compounded Sales Growth

  • -16.80%

    1 Year

  • -3.60%

    3 Year

  • -4.21%

    4 Year

Pro Only

Compounded Profit Growth

  • NA

    1 Year

  • NA

    3 Year

  • NA

    4 Year

Pro Only

Return On Equity

  • -1.64%

    1 Year

  • -7.38%

    3 Year

  • -17.02%

    4 Year

Pro Only

About Maharja Shree Umaid Mills

Overview: 

  • The company was incorporated on Aug 12, 1939. It is a spinning cum a Composite Textile Mills, at Pali - a district headquarter in the Western Rajasthan
  • Maharaja Shree Umaid Mills Ltd. is a part of the LN Bangur Group and was listed at Bombay Stock Exchange, Mumbai and Calcutta Stock exchange , Kolkata. The company got delisted after it was acquired by Placid Ltd. in the financial year 2014-15.
  • The company is a Composite Textile Mill and is in the business of manufacturing and marketing of yarns and fabrics. It produces 100% Cotton Yarns. It has both Rotors and Ring spun yarn producing facilities to cater the need of both Woven and Knitted fabrics manufacturers. 
  • Other than producing normal cotton yarns, it produces value added yarn for adding varieties such as Compact yarn, Slub Yarn, Elli twist yarn, Reverse twist yarn, Core spun yarn, multi-fold yarn, Bleached Mercerized yarns supplied in the form cone and hank form as well.
  • Mr. LN Bangur and Yogesh Bangur are the Managing director and Deputy Managing director of the company.
  • Maharaja Shree Umaid Mills Ltd. is part of LNB group of companies. 

Key facts:

  • Though the company has been making losses, company’s financial performance has been improving consistently on a year-on-year basis.
  • The company’s loss after tax of INR 7 Cr. for the year 2020 as against loss after tax INR 4 Cr. in the previous year
  • The company’s EBITDA margin have improved from 3.6% for the year 2018-19 to 11.6% for the year 2019-20
  • The company’s cashflow from operating activities has improved from - INR 15 Cr. for the year 2018-19 to INR 62 Cr. for the year 2019-20
  • The company has been incurring losses over the last few years as it has been struggling to ramp up production due to old machineries particularly in the spinning division, increase in interest costs due to funding of accumulated losses in the earlier years and underutilization of its rated capacity for Poplin products. 
  • The company has taken several steps to improve its financial performance such as supply of quality value added products by improving operational efficiency, adopting stringent cost control & reduction measures and expansion of its product market by appointing agents in new markets.

Key Client Base:

  • The company has a diverse client base. It serves to domestic buyers, 100% EOUs and overseas buyers. There is no revenue of 10.0% or more of total revenue from a single customer in FY20 and FY19. More than 60.0% of the Company’s customers have been transacting with the Company for over four years.

  • Maharja Shree Umaid Mills Merger & Acquisition

Merger

N/A

Acquisition

N/A

Investments

  • The company has an investment of INR 242 Cr. in Secured Transferable Redeemable non-Convertible Debentures of Dalmia DSP Limited.
  • Maharja Shree Umaid Mills Subsidiaries

  • MSUM Texfab Limited 

The said subsidiary has not started its operations till date

  • Maharja Shree Umaid Mills Revenue Segmentation

  • Revenue from Operations
  • Other Income
  • Maharja Shree Umaid Mills Product & Services

  • Fabrics Business 
  • Yarns Business
  • Maharja Shree Umaid Mills Industry Overview

Industry Statistics

Introduction: 

  • India’s textiles sector is one of the oldest industries in the Indian economy, dating back to several centuries.
  • The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital-intensive sophisticated mills sector on the other end. The decentralized power looms/ hosiery and knitting sector forms the largest component in the textiles sector.
  • The close linkage of textiles industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles makes it unique in comparison to other industries in the country
  • India’s textiles industry has a capacity to produce wide variety of products suitable for different market segments, both within India and across the world.

Market overview: 

  • The Indian textile industry in FY20 had a market size of approx. INR 11 lakh Cr. and expected to grow at a rate of 6.6% till FY 2026.
  • India’s textiles industry contributed 7.0% to the industry output (by value) in 2018-19. The Indian textiles and apparel industry contributed 2.0% to the GDP, 12.0% to export earnings and held 5% of the global trade in textiles and apparel in 2018-19.
  • The share of the India’s textiles and apparel exports in mercantile shipments was 11.0% in 2019-20
  • Textiles industry has around 4.5 Cr. employed workers including 35.22 lakh handloom workers across the country.
  • Cotton production is expected to reach 3.6 Cr. bales and consumption is expected to reach 11 Cr. bales in FY21—13.0% growth over the previous year.
  • The domestic textiles and apparel market stood at an estimated INR 7,20,000 Cr. in FY19.
  • The production of raw cotton in India is estimated to have reached 3.5 Cr. bales in FY20. During FY19, production of fiber in India stood at 14.4 Lakh tons (MT) and reached 1.60 MT in FY20 (till January 2020), while that for yarn, the production stood at 476 Cr. kgs during same period.
  • Exports of textiles (RMG of all textiles, cotton yarn/fabs./made-ups/handloom products, man-made yarn/fabs./made-ups, handicrafts excl. handmade carpets, carpets, jute mfg. including floor coverings) stood at INR 1,87,776 Cr, as of February 2021.

Government initiatives: 

  • Indian government has come up with several export promotion policies for the textiles sector. It has also allowed 100% FDI in the sector under the automatic route.
  • In March 2021 
  • The Ministry of Textiles favored limited deal for the India-UK free trade agreement that could boost the garments sector
  • Under the ongoing sub-mission on agroforestry (SMAF) scheme, the Ministry of Agriculture and Farmers Welfare signed a memorandum of understanding (MoU) with the Central Silk Board, under the Ministry of Textiles, on a convergence model to implement agroforestry in the silk sector. 
  • Toys were identified as one of the 24 primary sectors listed under the self-reliant India initiative. The Department for Promotion of Industry and Internal Trade (DPIIT) has developed a ‘National Action Plan’ for toys that calls on several central ministries, including textiles, MSME, I&B, Education, DPIIT (under the Ministry of Commerce) and other departments, to nurture and promote the industry.
  • Defense Research and Development Organization (DRDO) is helping the Indian textile industry to produce yarns and eliminate dependence on import of Chinese and other foreign clothing for military uniforms. 
  • In October 2020, the Cabinet Committee on Economic Affairs chaired by Mr. Narendra Modi approved mandatory packaging of 100% food grains and 20.0% sugar in jute bags. Under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987, the government is required to consider and provide for the compulsory use of jute packaging materials for supply.
  • Under Union Budget 2020-21, a National Technical Textiles Mission is proposed for a period from 2020-21 to 2023-24 at an estimated outlay of Rs. 1,480 Cr. 
  • In FY2020, Cotton Corporation of India made a record procurement of 15 Cr. bales under MSP operations, which is 290.0% higher than 38.43 lakh bales procured during the corresponding period last year.

Maharja Shree Umaid Mills Strengths

  • Company continues to build its competence to enhance the product basket in its profitable Poplin segment and concentrate on producing and increasing market share in the valued-added products in the yarn segment.
  • With new value-added products in the pipeline in the Poplin segment, this segment is likely to share a larger pie of total revenues of the company in the coming years
  • The company has an installed capacity of 460 looms producing about 50,000 Meters of Fabrics every day and  for the yarn business it has an installed capacity of 96,432 Ring spindles and 1,944 OE Rotors having a total output of about 60 tons/day.
  • Company’s EBIT and EBITDA margins have improved in the recent years due to continues technological upgradation and strategic decision taken by the management to discontinue non-profitable products in the spinning division.

Maharja Shree Umaid Mills Shortcomings

  • Despite the management’s efforts and technological upgradations, the company continues to make losses. The loss after tax for the year 2020 stands at INR 7 Cr.
  • The company faces a high risk of solvency with moderate debt to equity ratio and a low interest coverage ratio.
  • The company has been incurring losses over the last few years as it has been struggling to ramp up production due to old machineries particularly in the spinning division, increase in interest costs due to funding of accumulated losses in the earlier years and underutilization of its rated capacity for Poplin products.

Maharja Shree Umaid Mills Opportunities

  • The Indian technical textiles market is expected to expand to INR 1,67,760 Cr. by 2027, driven by increased awareness of goods and higher disposable incomes. 
  • The pandemic has led to increased demand for technical textiles in the form of PPE kits and equipment. Government is supporting the sector through funding and machinery sponsoring.
  • Potential in increase operational efficiency and reduce losses by continues technological upgradation and stringent cost measures.

Maharja Shree Umaid Mills Threats

  • The COVID-19 pandemic possesses a huge threat on the business of the organization by way of interruption in production, supply chain disruption, unavailability of personnel, closure/lock down of production facilities etc. during the extended lock-down period.
  • The company faces a tough competition from its competitors like Arvind Mills, Vardhaman textiles, Bombay dyeing, Raymonds, Page industries, Reliance textiles etc. Frequent technological upgradations, stringent cost measures and aggressive marketing are necessary for the survival and growth in the textile industry
Maharja Shree Umaid Mills Rating

  • RECOMMENDATION

    Strong Sell

  • Maharja Shree Umaid Mills Detail Info

Industry Statistics

PRIVATE LIMITED

Registered In

India

Registered Date

12/08/1939

Planify Ticker

MSUM

Reg Office: 7, Munshi Premchand Sarani, Hastings, Kolkata - 700022

Website: http://www.msumindia.com