AI-generated · cited to primary sources · not investment advice
Borana Weaves (544404) Mar 2025 Filing Analysis
How durable is the business?
Greige fabric remains the dominant revenue engine, with sales growing from ₹14,366.13 lakhs to ₹25,158.04 lakhs, increasing its revenue share to approximately 86.7%. (2 expanding)
“Sales - Grey: 25158.04 (31-03-2025) vs 14366.13 (31-03-2024)”
Yarn sales have contracted significantly in absolute value and share, dropping from ₹5,260.17 lakhs to ₹3,355.35 lakhs as the company prioritizes fabric weaving. (1 contracting)
“Sales - Yarns: 3355.35 (31-03-2025) vs 5260.17 (31-03-2024)”
See the full cited Business Model analysis of Borana Weaves
What could break the thesis?
Cost pressures are intensifying. Factory Power Expenses surged from ₹968.64 lakhs to ₹1,628.44 lakhs (a 68% increase), and Yarn Consumed rose from ₹12,302.04 lakhs to ₹17,803.18 lakhs. (1 intensifying, 4 easing)
“Factory Power Expenses(Net) 1628.44 [vs] 968.64”
The risk is easing as the Debt-Equity ratio significantly improved from 1.45 to 0.67, and the Debt Service Coverage Ratio improved from 9.31 to 11.98, indicating a much stronger ability to repay obligations. (1 easing)
“Debts Equity Ratio 0.67 1.45 -53.45% ... Debts Service Coverage Ratio 11.98 9.31 28.77%”
This risk is emerging into a concrete project phase. The company has committed to launching a new unit in 2025 specifically for waterproof and technical textile fabrics. (4 emerging)
“2025: Upcoming New Unit for Advanced Fabrics... designed for waterproof and technical textile fabrics.”
See the full cited Risk analysis of Borana Weaves
AI-generated informational research only. ThesisLoop is not investment advice, a stock recommendation, or a guarantee of returns.