Company Overview

Lagnam Spintex Limited, incorporated in June 2010 and converted to a public limited company in January 2018, is an ISO 9001:2015 certified manufacturer specializing in cotton yarn production. Based in Bhilwara, Rajasthan, the company's promoters include Anand Mangal, Dwarka Prasad Mangal, and Lagnam Infotech Solutions Private Limited. The registered office and manufacturing facility are located at A-51/53 RIICO Growth Centre, Hamirgarh Bhilwara, Rajasthan, spread over 48,263 square meters. D. P. Mangal serves as the Chairman and Executive Director.

Business Operations and Products

Lagnam Spintex manufactures 100% Cotton Ring and Open-End Yarn, catering to diverse segments including Denims, Terry Towels, Home Textiles, Bottom Wear, Shirting, Sheeting, and Knitting. The product range spans counts from Ne 4 to Ne 30, including Carded & Combed Ring Spun yarn (Ne 20-32), Carded (Soft TPI) double yarn (Ne 20 & 24), and Open-End Yarn (Ne 6-20). They also produce yarn on perforated tubes for direct dyeing and Low Twist, High RKM OE yarn. These yarns are integral to applications like denims, terry towels, home textiles, bottom wear, shirting, sheetings, sweaters, socks, weaving, and knitting.

Global Market Presence

The company actively exports cotton yarns to a wide array of international markets, including Portugal, Bangladesh, Poland, China, Peru, Germany, Turkey, Mauritius, Malaysia, Korea, Taiwan, Hong Kong, Italy, Egypt, Belgium, South Africa, Slovenia, Colombia, Pakistan, South Korea, Guatemala, and others.

Market Position and Financial Performance

As of May 12, 2025, Lagnam Spintex Ltd (LAGNAM) has a market capitalization of ₹204.96 Crore. The current PE ratio stands at 15.93, and the PB ratio is 1.70.

Recent Financial Results

Lagnam Spintex Limited reported its financial results for the fiscal year and quarter ended March 31, 2025, showcasing significant growth.

- FY25 Performance:

- Total Revenue increased by 38% YoY to ₹605.56 Crore.

- Net Profit was ₹12.8 Crore.

- Q4FY25 Performance:

- Total revenue rose to ₹162.86 Crore, up from ₹149.65 Crore in Q4FY24.

- Profit After Tax (PAT) for the quarter increased by 22% to ₹8.54 Crore, compared to ₹7.3 Crore in the same period last year.

Strategic Expansion and Growth Initiatives

Lagnam Spintex successfully commissioned its ₹218 Crore capital expenditure expansion project ahead of schedule on January 31, 2024. This new production unit is now operating at full capacity, providing a competitive cost advantage and a notable boost to revenue, as evidenced by the recent financial results. Anand Mangal, Promoter and Managing Director, highlighted the pivotal role of this expansion in driving performance and scaling up production to meet increasing demand.

Credit Rating and Risk Factors

- Credit Rating: India Ratings has upgraded Lagnam Spintex's long-term rating to IND BBB- and short-term rating to IND A3, with a stable outlook.

- Promoter Holding: Promoters have pledged 48.2% of their holding.

- Financial Health Concerns: The company exhibits a high debt-to-equity ratio of 214%. It also has a low interest coverage ratio and a low return on equity (12.1% over the last 3 years). The dividend payout has been modest at 2.02% of profits over the last three years.

Industry Position and Competitors

Lagnam Spintex Ltd operates within the 'Textiles - Products' industry. Its key competitors include Grasim Industries Ltd, Welspun Living Ltd, Trident Ltd, Vardhman Textiles Ltd, Arvind Ltd, Garware Technical Fibres Ltd, and Alok Industries Ltd. The company continues to strengthen its position in the textile industry through strategic expansions and operational efficiency improvements, positioning itself for sustained growth in both domestic and international markets.