Company Overview

Shrenik Limited is an India-based company incorporated in 2012, engaged in the trading and processing of all kinds of paper, pulp, and paperboard products. Originally established as a proprietary firm called 'Shree Shyam Corporation' by Shrenikbhai Vimawala, the company was later converted into a partnership firm named Shrenik Tradelink in November 2012. The entity underwent several transformations, becoming a private limited company in December 2012, then changed to Shrenik Private Limited in December 2016, and finally converted to a public limited company as Shrenik Limited on April 3, 2017.

The company went public in July 2017 through an Initial Public Offering of 54,00,000 equity shares, raising equity capital of ₹21.6 crores. Headquartered in Ahmedabad, Gujarat, Shrenik operates as a wholesale distributor and processor in the paper industry across Gujarat, Rajasthan, and Maharashtra.

Business Operations and Product Portfolio

Shrenik Limited operates as a paper-trading company with business activities spanning across Gujarat, Rajasthan, and Maharashtra. The company's business is strategically divided into five main categories: Coated Paper, Uncoated Maplitho Paper, Copier Paper, Duplex Board, and Folding Boxboard.

The company serves as a wholesale distributor for several prominent paper manufacturers including Ballarpur Industries Limited, Tamil Nadu Newsprint and Papers Limited, Asia Pulp and Paper (Indonesia and China), Shah Pulp and Paper Mills Limited, NR Agarwal Industries Limited, April Fine Paper Trading Pte Ltd (Singapore), and Naini Group. Apart from being wholesale distributors, the company has established its own brand named "Shrenik" and also distributes for Tamil Nadu Newsprint and Papers Limited in the Gujarat region and Asia Pulp and Paper in Gujarat and Rajasthan regions.

The company's product range includes branded items such as Shrenik Premium Copier Paper and Shrenik Premium Digital Paper. Its Fine Coated products comprise Bilt Royal C2S Art Paper, Bilt Royal C2S Art Board, Bilt Royal C1S Gloss, and Black Centered Board. The Woodfree Uncoated-Highbrights category includes Sunshine Super Printing, Bilt Magna Print, Wisdom Print, Bilt Classic, Sunshine Envelope Paper, Bilt Maplitho Natural Shade, and Royal Executive Bond.

Financial Performance and Market Position

As of May 2025, Shrenik Limited has a market capitalization of ₹40.39 crores. For the quarter ended March 2025 (Q4 FY25), the company reported a net profit of ₹0.08 crores compared to a net loss of ₹234.94 crores in the corresponding quarter of the previous year. However, sales declined by 20.70% to ₹4.75 crores in Q4 FY25 from ₹5.99 crores in Q4 FY24.

For the full financial year ended March 2025, the company reported a net loss of ₹0.09 crores compared to a net loss of ₹235.51 crores in FY24. Annual sales declined significantly by 47.06% to ₹18.10 crores in FY25 from ₹34.19 crores in FY24. The company's net profit showed improvement, jumping 100.03% year-on-year to ₹0.08 crores in Q4 FY25, with a quarterly growth of 214.29% compared to the previous quarter.

The company has experienced challenges with poor sales growth of -53.1% over the past five years. Revenue has grown at a yearly rate of -43.78% over the last five years, significantly underperforming the industry average of 6.42%. Market share has decreased from 2.82% to 0.13% over the last five years.

Corporate Governance and Management

Shrenikbhai Vimawala serves as the Chairperson of the company. Promoter holding in the company has decreased to 25.38% as of March 2025 from 30.72% as of June 2024. Notably, promoters have pledged or encumbered 99.9% of their holding, which raises concerns about the financial stability of the promoter group.

The current shareholding pattern shows Promoters holding 25.80%, Institutions 70.44%, and Public 3.76%. S G Marathe & Co. serves as the auditor for the company.

Stock Performance and Trading Information

The stock is listed on both NSE and BSE under the symbol SHRENIK. The 52-week high for the stock stands at ₹1.45 while the 52-week low is ₹0.55. Over the past 12 months, the share price has declined by 35.79% on NSE, and over the last three years, it has fallen by 70.24%.

The company faces financial challenges with low interest coverage ratio and has experienced a market cap decline of 48.2% over the past year. Despite recent quarterly improvements in profitability, the company continues to grapple with declining revenues and market share erosion in the competitive paper trading industry.