Incorporated in 1996, Saraswati Saree Depot Limited specialises in manufacturing and wholesaling women's apparel, with a primary focus on sarees. The company's core business lies in the wholesale (B2B) segment, catering to the demand for sarees and other women's garments such as kurtis, dress materials, blouse pieces, lehengas, and bottoms.
Saraswati Saree Depot sources its extensive product range from over 900 weavers and suppliers across various Indian states. The company's catalogue boasts over 300,000 unique SKUs, reflecting its diverse and comprehensive selection. Predominantly serving the southern and western regions of India, including Maharashtra, Goa, Karnataka, and Tamil Nadu, the company has successfully catered to more than 13,000 unique customers in fiscal 2024.
The company's product offerings are meticulously categorised by occasion, fabric, weave, and ornamentation, ensuring a tailored shopping experience for its clients. Impressively, over 90% of Saraswati Saree Depot's revenue is generated from saree sales alone.
As of June 30, 2024, Saraswati Saree Depot Limited employed 314 individuals across various departments, underlining its commitment to growth and service excellence in the women's apparel wholesale market.
Industry Outlook:
- The Indian saree industry is projected to grow at a 5-6% CAGR from FY 2023 to FY 2028, reaching ₹625-650 billion by FY 2028.
- Sarees constitute approximately 40% of the women's ethnic wear market in India, driven by rising demand for premium and quality products.
Saraswati Saree IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding the working capital requirements of the company.
- General corporate purposes.
Peer Details
The companies considered by Saraswati Saree Depot as its peers include:
- Go Fashion (India) Ltd.
- Sai Silks (Kalamandir) Ltd.
How to Check the Allotment Status of the Saraswati Saree IPO?
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Contact Details of Saraswati Saree Depot Limited
Registered office: Sr No.144/1 Manademala, Near Tawade Hotel, Gandhinagar Road, Uchagaon, Kolhapur, Maharashtra – 416005, India
Phone: +919271009858
E-mail: cs@saraswatisareedepotlimited.com
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue From Operations (in ₹ million) | 6,109.04 | 6,018.91 |
| Profit After Tax (PAT) (in ₹ million) | 295.28 | 229.74 |
| Cash & Cash Equivalents (in ₹ million) | 98.68 | 190.49 |
| Net Worth (in ₹ million) | 649.09 | 353.82 |
| Debt to Equity Ratio(x) | 0.67 | 1.17 |
| Return on Equity (%) | 58.88% | 96.15% |
| Return on Capital Employed (RoCE) (%) | 64.46% | 98.03% |
| Earning Per Share (EPS)-in absolute ₹ | 8.92 | 6.94 |
Know before investing
Strengths
6Saraswati Saree Depot sources from 900+ weavers and suppliers.
The company offers 300,000+ SKUs, including sarees, kurtis, and lehengas.
Bulk buying capabilities optimise costs and reduce supply chain risks.
Promoters have 27-38 years of industry experience.
In fiscal 2024, the company served over 13,000 unique customers.
The company has a collaborative workforce that enhances efficiency and output.
Risks
6Saraswati Saree Depot generates 90.85% of its revenue from sarees in fiscal 2024.
The company derives 82.68% of its revenue from the western zone in fiscal 2024.
Sales are highly seasonal, peaking during festivals and weddings.
The company relies on 900+ weavers without long-term agreements.
Operations are working capital intensive, requiring significant funds.
The company experienced negative cash flows in the past three years.
