Trading · Founded 1980 · www.katarespinningmills.com · BSE 502933 · · ISIN INE498G01015
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Business
Katare Spinning Mills Ltd. (KATARE SPG.) is an Indian company primarily engaged in the trading of textile products. This involves sourcing various textile goods and reselling them to generate revenue from the margin. Additionally, the company also undertakes investment activities, aiming to generate returns from its financial portfolio. Its business model is thus a combination of commodity trading and capital allocation.
Revenue Mix
The company's revenue streams primarily originate from two segments:
Trading of Textile Products: This segment encompasses the buying and selling of diverse textile materials and finished goods.
Investment Activity: This segment involves generating income and capital gains from the company's financial investments.
Specific percentage contributions for each segment are not publicly detailed, but textile trading is stated as a core operational activity.
Industry
Katare Spinning Mills Ltd. operates within the broader trading sector in India, with a specific focus on textile products. The textile trading industry in India is generally fragmented, characterized by numerous small to medium-sized players. Competition is primarily driven by pricing, efficient supply chain management, and the ability to offer a diverse product range. The company likely positions itself by leveraging its network for sourcing and distribution within specific textile sub-segments or regional markets. Its dual engagement in trading and investments somewhat differentiates its operational profile from pure-play traders.
MOAT
Katare Spinning Mills Ltd., as a company engaged in textile trading and investments, generally lacks strong, durable competitive advantages (moats) commonly seen in other industries. It does not possess significant brand recognition, substantial economies of scale that provide an overwhelming cost advantage, or network effects. Any competitive edge would likely stem from efficient sourcing channels, strong relationships with suppliers and buyers, or superior market intelligence in textile trading, along with astute capital allocation in its investment portfolio. However, these are often difficult to sustain as long-term moats.
Growth Drivers
Growth in Textile Demand: Expansion in the domestic and global textile markets, driven by consumer spending and fashion trends, would increase demand for textile trading.
Expansion of Trading Network: Broadening its supplier and customer base, and potentially entering new textile product categories or geographic markets.
Successful Investment Strategies: Prudent and profitable management of its investment portfolio could significantly boost overall earnings.
Operational Efficiency: Improvements in logistics, inventory management, and cost control within its trading operations.
Risks
Commodity Price Volatility: Fluctuations in the prices of textile raw materials (e.g., cotton, synthetic fibers) and finished goods can directly impact trading margins.
Intense Competition: The fragmented nature of the textile trading sector leads to significant price-based competition, potentially compressing profitability.
Economic Downturns: A general slowdown in the economy can reduce consumer demand for textiles, impacting trading volumes.
Regulatory and Trade Policy Changes: Alterations in import/export duties, trade agreements, or other government policies can affect the company's trading business.
Investment Portfolio Risk: The value and income from the company's investment portfolio are subject to market fluctuations, interest rate changes, and specific risks of the underlying assets.
Management & Ownership
As with many Indian companies, Katare Spinning Mills Ltd.'s ownership is likely concentrated among the promoter group and their associates, who typically play a significant role in strategic decision-making and operational oversight. Details regarding specific management quality and the promoter holding percentage would typically be disclosed in annual reports and stock exchange filings.
Outlook
Katare Spinning Mills Ltd. presents a balanced outlook driven by its dual business model of textile trading and investment activities.
Positive Factors: A resurgence in the textile industry, coupled with the company's ability to efficiently manage its trading operations and make profitable investment decisions, could lead to revenue and earnings growth. Its diversified approach might offer some resilience against singular market risks.
Negative Factors: The company operates in a highly competitive and fragmented textile trading market, making consistent margin expansion challenging. It is also exposed to the inherent volatility of commodity prices and the risks associated with its investment portfolio. The absence of strong competitive moats means its performance will heavily rely on astute management decisions and favorable market conditions rather than entrenched advantages.
| #(Fig in Cr.) | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 1 | 1 | 1 | 2 | 1 | 1 | 0 | 1 | 1 | 1 |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 |
| Total Income | 1 | 1 | 1 | 2 | 2 | 1 | 0 | 1 | 2 | 1 |
| Total Expenditure | 2 | 1 | 1 | 2 | 2 | 1 | 0 | 1 | 2 | 1 |
| Operating Profit | -1 | -0 | -0 | -0 | -0 | 0 | 0 | 0 | 0 | 0 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -2 | -0 | -0 | -0 | -1 | -0 | -0 | -0 | -1 | -0 |
| Provision for Tax | 0 | 0 | 0 | 0 | -0 | 0 | 0 | 0 | 1 | 0 |
| Profit After Tax | -2 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -1 | -0 |
| Adjustments | -0 | 0 | 0 | 0 | -0 | -0 | -0 | 0 | 0 | 0 |
| Profit After Adjustments | -2 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -1 | -0 |
| Adjusted Earnings Per Share | -6.7 | -1.5 | -1.7 | -1.4 | -1.5 | -0.9 | -1.1 | -1 | -4.5 | -0.8 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 36 | 33 | 36 | 32 | 32 | 31 | 10 | 3 | 7 | 4 | 5 | 3 |
| Other Income | 1 | 3 | 0 | 1 | 5 | 0 | 0 | 24 | 1 | 0 | 0 | 1 |
| Total Income | 37 | 35 | 36 | 33 | 37 | 32 | 11 | 28 | 8 | 4 | 5 | 4 |
| Total Expenditure | 36 | 32 | 36 | 32 | 32 | 32 | 11 | 11 | 8 | 5 | 6 | 4 |
| Operating Profit | 1 | 3 | 1 | 0 | 4 | -1 | -0 | 17 | 0 | -0 | -0 | 0 |
| Interest | 2 | 3 | 3 | 3 | 3 | 1 | 1 | 1 | 0 | 0 | 0 | 0 |
| Depreciation | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -2 | -1 | -4 | -4 | 0 | -2 | -2 | 15 | -1 | -2 | -2 | -1 |
| Provision for Tax | -2 | -1 | -1 | -1 | 0 | 0 | 0 | 7 | 0 | -0 | -0 | 1 |
| Profit After Tax | 0 | -0 | -3 | -3 | 0 | -2 | -2 | 8 | -2 | -2 | -2 | -1 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 0 | -0 | -3 | -3 | 0 | -2 | -2 | 8 | -2 | -2 | -2 | -1 |
| Adjusted Earnings Per Share | 0.7 | -1.2 | -9.2 | -10.2 | 0.3 | -7.8 | -6.1 | 27.8 | -5.3 | -6.6 | -6.1 | -7.4 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 25% | 19% | -31% | -18% |
| Operating Profit CAGR | 0% | -100% | 0% | -100% |
| PAT CAGR | 0% | NAN% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -26% | -28% | 35% | 17% |
| ROE Average | -27% | -23% | 79% | -22% |
| ROCE Average | -16% | -14% | 10% | 5% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 11 | 10 | 8 | 5 | 5 | 3 | 1 | 125 | 119 | 118 | 116 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 12 | 10 | 8 | 8 | 3 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | -1 | -2 | -3 | -3 | -3 | -3 | -3 | 1 | 1 | 1 | 0 |
| Total Current Liabilities | 17 | 22 | 24 | 28 | 32 | 30 | 30 | 4 | 3 | 4 | 4 |
| Total Liabilities | 39 | 40 | 37 | 37 | 37 | 30 | 28 | 130 | 124 | 122 | 121 |
| Fixed Assets | 12 | 20 | 20 | 19 | 18 | 17 | 16 | 125 | 117 | 115 | 114 |
| Other Non-Current Assets | 19 | 10 | 11 | 11 | 7 | 7 | 7 | 1 | 3 | 3 | 3 |
| Total Current Assets | 8 | 10 | 6 | 7 | 12 | 5 | 4 | 4 | 4 | 4 | 3 |
| Total Assets | 39 | 40 | 37 | 37 | 37 | 30 | 28 | 130 | 124 | 122 | 121 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash Flow from Operating Activities | 2 | -1 | 2 | 0 | 2 | -3 | 1 | 5 | -4 | -0 | -0 |
| Cash Flow from Investing Activities | -2 | 3 | 0 | 1 | -1 | 6 | 0 | 25 | 1 | 0 | 0 |
| Cash Flow from Financing Activities | 0 | -2 | -2 | -1 | -2 | -4 | -1 | -29 | 3 | -0 | 0 |
| Net Cash Inflow / Outflow | -0 | 0 | -0 | -0 | -0 | 0 | -0 | 0 | 0 | 0 | 0 |
| Closing Cash & Cash Equivalent | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 0.65 | -1.19 | -9.17 | -10.23 | 0.35 | -7.81 | -6.09 | 27.79 | -5.3 | -6.57 | -6.07 |
| CEPS(Rs) | 2.85 | 2.63 | -5.3 | -6.44 | 3.38 | -4.7 | -3.03 | 32.55 | -0.48 | -2.01 | -1.48 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 17.31 | 16.12 | 6.95 | -3.28 | -2.94 | -10.75 | -15.41 | 27.41 | 31.63 | 25.06 | 19.22 |
| Core EBITDA Margin(%) | -0.85 | 1.35 | 0.02 | -0.06 | -0.97 | -2.89 | -3.5 | -208.03 | -14.92 | -20.05 | -12.02 |
| EBIT Margin(%) | 0.31 | 5.84 | -1.69 | -1.8 | 10.56 | -5.07 | -10.84 | 460.05 | -16.5 | -43.78 | -32.82 |
| Pre Tax Margin(%) | -4.48 | -3.99 | -10.34 | -11.69 | 0.43 | -7.11 | -16.57 | 431.91 | -18.98 | -51.45 | -39.37 |
| PAT Margin (%) | 0.52 | -1.03 | -7.34 | -9 | 0.31 | -7.11 | -16.57 | 228.76 | -21.37 | -46.77 | -33.8 |
| Cash Profit Margin (%) | 2.28 | 2.27 | -4.24 | -5.66 | 3.02 | -4.27 | -8.23 | 267.96 | -1.94 | -14.3 | -8.23 |
| ROA(%) | 0.48 | -0.85 | -6.71 | -7.84 | 0.27 | -6.68 | -6.01 | 10.04 | -1.19 | -1.52 | -1.43 |
| ROE(%) | 3.24 | -7.13 | -79.49 | -558.24 | 0 | 0 | 0 | 463.48 | -17.97 | -23.19 | -27.43 |
| ROCE(%) | 0.37 | 6.2 | -1.98 | -1.9 | 10.96 | -5.57 | -4.5 | 96.87 | -11.25 | -15.18 | -16.38 |
| Receivable days | 10.76 | 14.71 | 11.56 | 15.47 | 23.07 | 24.72 | 71.36 | 185.43 | 97.36 | 174.54 | 118.13 |
| Inventory Days | 23.52 | 22.44 | 22.8 | 27.19 | 30.54 | 29.93 | 73.01 | 193.01 | 89.14 | 143.04 | 101.64 |
| Payable days | 23.72 | 28.49 | 35.95 | 39.32 | 36.18 | 20.53 | 31.26 | 68.82 | 8.68 | 5.77 | 2.63 |
| PER(x) | 34.45 | 0 | 0 | 0 | 26.6 | 0 | 0 | 16.34 | 0 | 0 | 0 |
| Price/Book(x) | 1.29 | 0.9 | 2.83 | -3.96 | -3.13 | -1.07 | -0.86 | 16.57 | 5.68 | 9.38 | 9.89 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.86 | 0.82 | 0.9 | 1.01 | 0.88 | 1.03 | 3.11 | 37.52 | 7.71 | 17.6 | 11.4 |
| EV/Core EBITDA(x) | 41.43 | 8.96 | 63.83 | 65.96 | 6.64 | -45.92 | -124.29 | 7.52 | 262.57 | -155.66 | -157.37 |
| Net Sales Growth(%) | -2.24 | -7.45 | 8.08 | -8.93 | -1.3 | -2.06 | -66.58 | -66.93 | 104.31 | -43.39 | 27.84 |
| EBIT Growth(%) | -95.85 | 1629.22 | -131.28 | 2.87 | 678.33 | -147.03 | 28.47 | 1502.24 | -107.33 | -50.21 | 4.18 |
| PAT Growth(%) | 206.07 | -283.29 | -669.25 | -11.63 | 103.38 | -2358.49 | 21.99 | 555.98 | -119.09 | -23.88 | 7.61 |
| EPS Growth(%) | 206.07 | -283.3 | -669.25 | -11.63 | 103.38 | -2358.69 | 21.99 | 555.97 | -119.09 | -23.88 | 7.61 |
| Debt/Equity(x) | 5.51 | 5.5 | 14.57 | -33.62 | -38.14 | -9.47 | -6.58 | 0.07 | 0.37 | 0.5 | 0.78 |
| Current Ratio(x) | 0.48 | 0.48 | 0.27 | 0.26 | 0.36 | 0.17 | 0.15 | 1.13 | 1.23 | 0.95 | 0.78 |
| Quick Ratio(x) | 0.36 | 0.38 | 0.17 | 0.17 | 0.27 | 0.09 | 0.08 | 0.66 | 0.73 | 0.57 | 0.46 |
| Interest Cover(x) | 0.07 | 0.59 | -0.2 | -0.18 | 1.04 | -2.49 | -1.89 | 16.35 | -6.66 | -5.71 | -5.01 |
| Total Debt/Mcap(x) | 4.26 | 6.12 | 5.14 | 8.5 | 12.18 | 8.81 | 7.65 | 0 | 0.07 | 0.05 | 0.08 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 49.84 | 49.78 | 49.7 | 49.7 | 49.7 | 49.7 | 49.7 | 49.62 | 49.62 | 49.6 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 |
| Public | 49.88 | 49.94 | 50.02 | 50.02 | 50.02 | 50.02 | 50.02 | 50.1 | 50.1 | 50.13 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | +25% | +19% | -31% | -18% |
| Operating Profit CAGR | — | -100% | — | -100% |
| PAT CAGR | — | 0% | — | — |
| Share Price CAGR | -26% | -28% | +35% | +17% |
| ROE Average | -27% | -23% | +79% | -22% |
| ROCE Average | -16% | -14% | +10% | +5% |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 49.84 | 49.78 | 49.7 | 49.7 | 49.7 | 49.7 | 49.7 | 49.62 | 49.62 | 49.6 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 |
| Public | 49.88 | 49.94 | 50.02 | 50.02 | 50.02 | 50.02 | 50.02 | 50.1 | 50.1 | 50.13 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 |
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