Company Overview

Shiva Mills Limited is an India-based textile company principally engaged in the business of manufacturing and marketing of cotton yarn. The company was incorporated in 2015 and has its registered office located at 252 Mettupalayam Road, Coimbatore, Tamil Nadu. The company was formerly known as STYL Textile Ventures Limited and changed its name to Shiva Mills Limited in August 2017.

Shiva Mills Ltd belongs to the Coimbatore-based Bannari Amman Group (BAG) and operates as a specialized textile manufacturer with a focus on cotton yarn production for both domestic and international markets. The company exports approximately 30% of cotton yarn produced to far east countries, demonstrating its global market presence and export capabilities.

Business Operations & Infrastructure

The company operates through two primary business divisions that form the core of its operational structure: Spinning Unit and Windmill Units.

Spinning Unit

The company's spinning unit is located near Dindigul, Tamil Nadu, with an installed capacity of approximately 39,072 spindles. This substantial spinning capacity positions the company as a significant player in the South Indian textile manufacturing landscape. The spinning unit specializes in the production of cotton yarn for knitting and manufactures counts between Ne 20/1 to 40/1. This range of yarn counts caters to various textile applications, from fine fabrics to heavier textile products, providing the company with diversified product offerings to serve different market segments.

Windmill Division

In addition to its textile operations, Shiva Mills has diversified into renewable energy through its windmill division. Its windmill division comprises approximately 22 windmills with an installed capacity of approximately 10.65 megawatts (MW). This renewable energy segment not only contributes to the company's revenue streams but also aligns with sustainable business practices and potentially provides cost advantages for its energy-intensive textile operations.

Market Position & Trading Information

- Stock Symbols: SHIVAMILLS (NSE), 540961 (BSE)

- Market Capitalisation: ₹81.49 Crores (As of January 23, 2025)

- 52-Week High: ₹119.35

- 52-Week Low: ₹73.85

- Primary Industry: Textiles - Spinning - Synthetic / Blended

The company's stock performance reflects the cyclical nature of the textile industry and various market dynamics affecting cotton yarn manufacturers.

Financial Performance & Key Metrics

The company's financial performance shows mixed results, reflecting the challenges faced by the textile industry.

- Quarter Ended September 2024: Reported a consolidated loss of ₹0.72 Crore on a total income of ₹48.19 Crore.

- Year Ended September 2024: Reported a consolidated loss of ₹0.72 Crore on a total income of ₹48.20 Crore.

- Trailing 12-Month Operating Revenue: ₹175.04 Crores

- Key Financial Ratios (Recent Data):

- PE Ratio: -40.38

- PB Ratio: 0.88

- ROE (Return on Equity): -3%

The company is debt-free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. This debt-free status provides the company with financial flexibility and reduces financial risk, which is particularly valuable in the cyclical textile industry where cash flow management is crucial.

Management & Corporate Governance

- Chairman & Managing Director: S V Alagappan

- Auditor: V K S Aiyer & Co

- Promoter Holding: 74.94% (As of September 2024)

The company maintains a structured board composition with independent directors to ensure proper corporate governance practices. The promoter-driven ownership structure indicates strong promoter confidence and control over the company's strategic direction.

Industry Position & Future Outlook

The company faces challenges with an annual revenue de-growth of -1% and a pre-tax margin of -2%, indicating areas requiring operational improvements and strategic focus. The textile industry continues to face pressures from raw material cost fluctuations, changing global trade patterns, and evolving consumer preferences.

The company's dual focus on textile manufacturing and renewable energy through windmill operations provides some diversification benefits. The windmill division not only generates additional revenue but also supports the company's sustainability initiatives and potentially reduces operational costs for the energy-intensive spinning operations.

Shiva Mills Limited continues to navigate the challenges of the textile industry while leveraging its established infrastructure, debt-free balance sheet, and diversified operations across textiles and renewable energy to maintain its market position in the competitive cotton yarn manufacturing sector.