Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on July 15, 2025
- The company is engaged in the manufacturing of garments, innerwears, and fabric yarn.
• It has over a dozen flagship brands under its fold.
• For the last two fiscals, it marked almost static top and bottom lines with decline in profits for FAY25.
• Based on its market trends, and financial data, the issue appears aggressively priced.
• Well-informed/cash surplus investors may park moderate funds for long term.
ABOUT COMPANY:
TT Ltd. (TTL) is presently engaged in the business of manufacturing garments including designing, branding, marketing mainly in the innerwear, thermal wear, casual wear, kids wear section, knitting of fabrics, rebranding and trading of yarn. The Company initially started as a men’s innerwear brand and later on included under its banner women’s wear and kid’s wear and subsequently started with the Casual wear. TTL in an effort to achieve economies of scale and provide the best quality products under its name, the backward integration of fabric, yarn and fibre was started.
“HiFlyers”, “JAZZ”, “TITANIC”, “ADDY”, “fundoo”, “Softy”, “Desire”, “Cool”, “India First”, “Elegance”, “21st Centy”, “Hotpot”, “Elite”, “Thermo” and “Coco Tree” are the flagship brands of its Promoter TT Brands Limited. As part of its growth strategy, the company has diversified portfolio of brands to cater to all the segments and penetrate into the daily lifestyle of consumers. The diversification of brand has enabled it to become a household name. The Company’s core competency lies in understanding the prevailing trends in the men’s innerwear and women’s innerwear market and the buying preferences of customers and accordingly manufacturing quality innerwear garments to assure customers of product quality and fit consistency in trendy men’s and women’s innerwear. In addition, TTL’s competency also lies in identifying the gaps and foraying into the untapped women’s innerwear market segments with unique products.
The Company identified that the Indian market was developing and there was potential for launching and sustaining a premium textile brand and hence in the year 1993 established its first spinning mill at Gajroula (Uttar Pradesh) and in the year 1995 established its second spinning mill and a garment factory in Avinashi, Tirupur, Tamil Nadu. In the year 2018, its spinning mill located in Gajroula (Uttar Pradesh) was converted into Garment’s manufacturing unit and in April, 2024 disposed-off that unit. As part of its strategic expansion plan, it had entered into a lease agreement with West Bengal Hosiery Park Infrastructure Limited for developing another manufacturing facility in Howrah (West Bengal) in the year 2022 to expand our operations in the Eastern region.
The Company is a marketing centric organization, which works on the consumer’s need and accordingly modifies the innerwear product and design know-how. It operates in the B2B segment mainly. As on date it has an active distribution network across cities and states especially in North India. The Company has always believed in offering high quality products at affordable value and the same has helped the brand to develop a strong pull from the end customers and trade partners. The Company generates its revenue from supply of its finished products to the distributors and wholesalers. Garments contributes around 60% average per year in its total revenues. As of March 31, 2025, it had 244 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 33330444 equity shares of Re. 1 each at a fixed price of Rs. 12 per share to mobilize Rs. 40.00 cr. The RI is opening for subscription on July 17, 2025, and will close on July 31, 2025. The company is offering RI in the ratio of 4 for 27 to its eligible stakeholders as of the record date of July 04, 2025. There is an error in RI opening date on first page and page no. 56 of the offer document – page 1 has 17.04.25 as opening date, while page 56 shows 14.07.25 as opening date.
The company is asking for full money on application for number of shares applied. Post allotment, shares will be listed on BSE and NSE. The company is spending Rs. 3.43 cr. for this RI process, and from the net proceeds, it will utilize Rs. 3.00 cr. for capex on replacement of certain old machineries at Tirupur unit, Rs. 4.00 cr. for brand building and awareness expenses, Rs. 25.00 cr. for working capital, and Rs. 4.57 cr. for general corporate purposes.
The RI is solely lead managed by Sumedha Fiscal Services Ltd., and Beetal financial and Computer Services Pvt. Ltd. is the registrar to the issue.
Post RI, company’s current paid-up equity capital of Rs. 22.50 cr. will stand enhanced to Rs. 25.83 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 309.97 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total revenue/ net profit, of Rs. Rs. 212.11 cr. / Rs. 4.63 cr. (FY24), Rs. 215.87 cr. / Rs. 4.10 cr. (FY25). The company reported almost static top and bottom lines for the last two fiscals. As of March 31, 2025, its NAV stood at Rs. 4 per share against Rs. 3.34 per share a year ago period. In fact, it posted a pressure on margins for FY25.
DIVIDEND POLICY:
The offer document is silent on its dividend policy. The company has declared dividends of 10% on December 09, 2021 and thereafter it skipped. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 514142 (FV Re.1).
The scrip last closed on cum-right basis at Rs. 15.03 on July 03, 2025, and opened on an ex-right basis at Rs. 14.75 on July 04, 2025. Since then, it has marked a high/low of Rs. 14.75 / Rs. 12.73. The scrip last closed at Rs. 14.08 as of July 15, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 18.06 / Rs. 10.20. The counter is currently under ESM: Stage 1.
The promoters’ holding has been constant around 56.09% for the last three quarters ended with March 31, 2025. The counter is currently trading just above its RI price to tempt investors.
NOTE: Our family has token holding in this company and may consider for eligible Rights shares with permissible additional shares, if any.
Conclusion / Investment Strategy
TTL is engaged in the manufacturing of garments, innerwears, and fabric yarn. It has over a dozen flagship brands under its fold. For the last two fiscals, it marked almost static top and bottom lines with decline in profits for FAY25. Based on its market trends, and financial data, the issue appears aggressively priced. Well-informed/cash surplus investors may park moderate funds for long term.
Review By Dilip Davda on July 15, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
