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GHCL Textiles Limited

GHCLTEXT

BSE
NSE

Textiles / Yarn Manufacturing

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NSE / BSE

About

GHCL Textiles Limited

Company Overview

GHCL Textiles Limited is a prominent Indian yarn manufacturing company specializing in high-quality cotton and synthetic yarns for domestic and international markets. Incorporated on June 17, 2020, the company became a 100% subsidiary of GHCL Limited. In 2022-23, the Spinning Division of GHCL Limited was transferred to GHCL Textiles on a going concern basis through a Scheme of Arrangement for Demerger, effective from April 1, 2023. Subsequently, 95,585,786 Equity Shares were listed, effective June 12, 2023.

The company has deep roots in the textile industry, with its yarn division initially established in 1927 as Sri Meenakshi mills. Recognized for its customer focus, GHCL Textiles has evolved into a leader in the spinning industry, boasting a variety of products that cater to diverse market segments.

Business Operations and Manufacturing Capabilities

GHCL Textiles Limited is an India-based manufacturer and supplier of a wide range of yarns. It specializes in producing premium yarns, including GIZA, SUPIMA, Australian, and CmiA yarns, catering to both domestic and international markets. The company operates with a significant production capacity of approximately 225,000 ring spindles, 3,320 rotors, 480 vortex positions, and 5,760 TFO spindles.

The company operates with advanced manufacturing infrastructure across multiple locations. Its yarn division, demerged into GHCL Textiles Limited, comprises two units located in Paravai and Manaparai, Tamil Nadu. These divisions produce 100% cotton and synthetic yarns, offering a diverse product range including open end, ring spun cotton, TFO, vortex, synthetic and synthetic blend, and ring spun yarn products.

Product Portfolio and Market Reach

GHCL Textiles' end products range from apparel, including yarn-dyed shirting and various types of garments, to home textile products such as bedsheets, bed linen, makeups, and curtains. The company leverages state-of-the-art technology in its production processes, with its manufacturing infrastructure featuring advanced textile machinery from renowned brands such as Rieter, Trutzschler, LMW, Suessen, Uster, Muratec, Saurer Schlafhorst, Savio, and SSM.

The company exports primarily to target countries such as Italy, Sri Lanka, Bangladesh, Germany, and other South Asian nations. This diverse geographic reach demonstrates the company's strong position in the global textile supply chain and its ability to meet international quality standards.

Financial Performance and Market Position

As of July 14, 2025, GHCL Textiles Ltd has a market capitalization of ₹857 crore. As per Value Research classification, it is categorized as a Small Cap company. The company's financial metrics reflect its operational efficiency and market positioning.

Key Financial Metrics:

- Market Capitalization: ₹857 Crore (as of July 14, 2025)

- Revenue (TTM): ₹1,123 Crore

- Net Profit (TTM): ₹56 Crore

- EBITDA: ₹1.10 Billion (EBITDA margin: 9.45%)

- P/E Ratio: 15.31 times (as of July 14, 2025), a 43% discount to peers' median (26.65 times)

- P/B Ratio: 0.60 times (as of July 14, 2025), a 76% discount to peers' median (2.55 times)

- Last Dividend per Share: ₹0.50

- Dividend Yield (TTM): 0.57%

Corporate Governance and Shareholder Returns

GHCL Textiles maintains a disciplined approach to capital allocation and shareholder returns. The company filed its 5th Annual Report and held its AGM on July 21, 2025, declaring a dividend of ₹0.50 per share.

Promoter holding in GHCL Textiles Ltd increased to 19.16% as of March 2025 from 19.15% as of June 2024. Hindustan Commercial Company Limited is the promoter of GHCL Textiles Ltd, owning 3.08% of the total equity.

Investment Strengths and Market Outlook

GHCL Textiles demonstrates several positive attributes that make it attractive to investors. The company is almost debt-free, which strengthens its financial position. The stock is currently trading at 0.61 times its book value, indicating potential value for investors. The company's strong operational foundation, combined with its modern manufacturing capabilities and established market presence, positions it well for future growth in the textile industry.

The company's 52-week high share price is Rs 123.05, and the 52-week low share price is Rs 65.90. This price range reflects the stock's volatility and market sentiment over the past year, providing context for potential investors evaluating entry points.