Pashupati Cotspin Limited is an India-based company engaged in the business of processing Kapas (raw cotton) through ginning, spinning of cotton yarn, and delineating processes. Operating as a comprehensive textile processing entity, the company transforms raw cotton into finished products, serving both domestic and international markets.
The company was initially formed as "Pashupati Cotspin LLP" on January 07, 2013. It later converted to a Private Limited Company named "Pashupati Cotspin Private Limited" on July 03, 2017, and subsequently became a Public Limited Company, "Pashupati Cotspin Limited," on July 18, 2017. Pashupati Cotspin is listed on the SME Platform and is part of the broader Pashupati group, which operates across the textile industry and has diversified into hospitality and pharmaceuticals.
Pashupati Cotspin's core business revolves around the processing of raw cotton. Its products include Cotton bales, Cotton yarn, and Black Cotton seeds (Delineate Seeds). The company operates a vertically integrated business model covering multiple stages of cotton processing.
The company's manufacturing unit is located in Kadi, Gujarat. Key production capacities include:
- Spinning Unit: Approximately 25,536 spindles with an installed capacity to produce around 5,000 tons of cotton yarn per annum. A broader capacity of 37,000 spindles is also mentioned.
- Ginning Plant: Production capacity of 1,20,000 Cotton Bales (equivalent to 20,000 metric tons) per annum, utilizing 56 Double Roller Gins. A broader capacity of 37,707 metric tons per annum of cotton for the ginning unit is also stated.
Pashupati Cotspin boasts a strong international presence, exporting its products (cotton bales, yarn, and seeds) to 35 countries. This extensive global reach underscores the company's competitiveness in the textile industry. Future plans include deepening penetration in existing markets and exploring new ones. The company's operations are integral to the Pashupati group's textile industry footprint.
The company's financial performance demonstrates growth and operational efficiency.
- Market Capitalization: ₹962.11 Crore (as of Feb 17, 2025), classifying it as a Small Cap company.
- TTM Profit After Tax: ₹8 Crore
- EPS (TTM): 8.67
- P/E Ratio: 115.88 (as of Feb 17, 2025 03:31 PM)
- P/B Ratio: 0.15 (as of Feb 17, 2025 03:31 PM)
- Dividend Yield: 0.12%
- Sales: INR 3,446.89 million (compared to INR 2,629.89 million a year ago)
- Revenue: INR 3,475.93 million (compared to INR 2,662.17 million a year ago)
- Net Income: INR 53.21 million (compared to INR 2.24 million a year ago), indicating a significant increase.
- Revenue CAGR (last 3 years): 14.3%
- Net Profit CAGR (last 3 years): 16.1%
- 3-Year Average RoE: 7.2%
- 3-Year Average RoCE: 8.9%
Pashupati Cotspin's stock has shown significant positive momentum.
- Past 6 months: Share price increased by 28.33%
- Last 1 year: Share price increased by 496.43%
- Last 3 years: Return of 82.98%
- 52-week high: ₹628.10
- 52-week low: ₹85.00
The leadership team includes:
- Chairman & Managing Director: Saurin Jagdish Bhai Parikh
- Promoters: Saurin Jagdish Bhai Parikh, Trivedi Tushar R, Daksesh Jayantilal Patel, Sandip Aswinbhai Parikh, Sheela Kirtankumar Roy, Nisarg Shah.
Pashupati Cotspin presents a compelling investment opportunity in the textile sector, backed by an integrated business model, strong export presence, and a focus on operational efficiency and strategic growth.
- Operational Efficiency: Reduced debt, healthy dividend payout of 17.3%, and improved working capital management (reduced from 75.8 days to 51.3 days).
- Shareholding Pattern: Promoters have pledged 3.27% of total equity (as of Sep-24). FII ownership saw a notable increase from 10.1% (Oct 2024 quarter) to 12.4% (March 2025).
- Diversification & Sustainability: Heavily investing in renewable energy to reduce operational costs and environmental impact. The Pashupati Group has diversified into hospitality and pharmaceuticals (via Uniza in 2020).
- Future Growth: While the core focus remains textiles, the company may explore forward integration in the textile value chain, such as weaving or garment manufacturing, building on its existing ginning, spinning, and oil mill operations. This aligns with its "Farm to Fabric" concept and could enhance profitability.
Pashupati Cotspin's strategic positioning in the cotton processing value chain, combined with its expansion into renewable energy and potential forward integration opportunities, makes it an interesting proposition for investors seeking exposure to India's textile industry.
