Company Overview

Neelam Linens and Garments (India) Limited was incorporated as a Private Limited Company under the name "Neelam Linens and Garments (India) Private Limited" on September 22, 2010, with the Registrar of Companies, Mumbai. The company transitioned to Public Limited status and changed its name to "Neelam Linens and Garments (India) Limited" on August 12, 2022, receiving a fresh Certificate of Incorporation on September 01, 2022.

The company operates as a soft home furnishing and garment business based in Maharashtra, India, serving a global clientele across the USA, Australia, and the Far East. It specializes in the processing, finishing, and supplying of bedsheets, pillow covers, duvet covers, towels, rugs, and garments, primarily catering to discounted retail outlets. The company also engages in the sale of import licenses.

Business Model and Operations

Neelam Linens and Garments (India) specializes in the processing and trading of soft home furnishings and related products, alongside the sale of import licenses. Serving a global clientele, including customers in the USA, Australia, and the Far East, the company processes and supplies items such as bedsheets, pillow covers, duvet covers, towels, rugs, and garments, predominantly for discounted retail outlets. By sourcing surplus fabrics locally, the company adds value through services like digital printing, dyeing, and embroidery before distributing finished products worldwide.

The business strategy focuses on identifying surplus or slightly imperfect fabrics in the domestic market and transforming them into value-added products through various processing techniques. In 2023, the company diversified into the apparel industry by initiating in-house production of men's and women's fashion apparel, marking an expansion beyond its traditional home furnishing segment.

Market Position and Industry Presence

Neelam Linens and Garments (India) Ltd (NEELAM) operates within the Consumer Discretionary sector, specifically the Apparel & Accessories sub-sector, contributing to India's textile industry. India is the second-largest textile producer and sixth-largest exporter globally, with textile exports projected to reach $65 billion by FY26. The industry contributes 2.3% to India's GDP and is expected to grow at a 10% CAGR through 2026.

Key Peers: Trident Ltd, Vardhman Textiles Ltd, Welspun Living Ltd, Alok Industries Ltd, Garware Technical Fibres Ltd, Arvind Ltd, Indo Count Industries Ltd.

Financial Performance

Based on the latest available data:

- Recent Performance (Q1 FY25): Net Profit of Rs. 0.81 Cr on Total Income of Rs. 21.95 Cr.

- Full Year FY24: Revenue of Rs. 104.74 Cr and Profit of Rs. 2.46 Cr.

- Full Year FY23: Revenue of Rs. 105.41 Cr and Profit of Rs. 2.38 Cr.

- Average EPS (Last 3 Fiscals): Rs. 1.75

- Average RoNW (Last 3 Fiscals): 12.40%

Key Financial Metrics:

- PAT Margins: 2.94% (FY22), 2.30% (FY23), 2.40% (FY24), 3.69% (Q1-FY25)

- RoCE Margins: 16.74% (FY22), 13.64% (FY23), 13.69% (FY24), 3.84% (Q1-FY25)

Stock Performance and Valuation

As of Jul 22, 2025, 11:31 AM:

- Market Capitalization: ₹48.12 Cr

- Exchange: NSE SME

- Stock Symbol: NEELAM

Current Valuation Metrics (as of July 22, 2025):

- PE Ratio: 17.93

- PB Ratio: 0.81

- 52-Week High: ₹74.40

- 52-Week Low: ₹18.50

IPO Journey and Listing

- IPO Subscription: 85.50 times

- IPO Dates: November 8, 2024 – November 12, 2024

- Price Band: ₹20 to ₹24 per share

- Issue Size: 54,18,000 equity shares (Fresh Issue)

- Listing Date: November 18, 2024, on NSE SME

- Listing Performance: Listed at ₹40.05, a premium of 66.88% over the IPO price.

- Post-Listing: Stock was frozen at its lower circuit limit of 5% compared to its listing price.

- Promoter Holding (Post-IPO): Diluted to 54.29% from 74.18% pre-issue.

Management and Shareholding

- Key Management: Kantilal Jethva (Chairman), Supriya Gupta (Company Secretary)

- Promoters: Kantilal Jethva, Bhavin Jethwa, Manish Kamalia, Dinkal Doshi, Falguni Shah, Supriya Gupta.

- Promoter Holding: 54.3%

Use of IPO Proceeds

The net proceeds from the IPO are intended for:

- Meeting capital expenditure requirements for purchasing embroidery machines for expansion.

- Prepayment or repayment of outstanding borrowings.

- General corporate purposes.

This demonstrates the company's strategic focus on enhancing manufacturing capabilities and strengthening its financial health.

Recent Developments

- March 31, 2025: Board commented on the delay in filing September '24 results. A waiver was denied, and a fine of ₹59,000 was paid. The company is actively addressing compliance issues and working to maintain regulatory standards.

Neelam Linens and Garments (India) Ltd represents an emerging player in India's textile and home furnishing sector. It leverages its processing capabilities to serve both domestic and international markets, focusing on value-added manufacturing and cost-effective solutions for global retail outlets.