Dudani Retail SME IPO

Strengths · 9

• 01Profit has grown every year, from Rs 0.99 crore in FY2024 to Rs 1.78 crore in FY2025 and Rs 1.90 crore in FY2026.
• 02EBITDA improved from Rs 1.81 crore in FY2024 to Rs 2.97 crore in FY2026, an EBITDA margin of 12.07%.
• 03Return on net worth is 18.46% and return on capital employed is 25.88%.
• 04Net worth has grown from Rs 6.62 crore in FY2024 to Rs 10.30 crore in FY2026.
• 05Debt is low at Rs 4.82 crore against a net worth of Rs 10.30 crore, a debt to equity ratio of 0.47.
• 06It manufactures under licence for well known marketplace labels including Roadster, Anouk, All about you and Taavi, which brings volume without having to build a brand itself.
• 07It earns in three ways, from its own brand, from licensed manufacturing and from supplying a quick commerce platform.
• 08Cutting, stitching, finishing, quality checks and dispatch are done in house, so it controls the core of production.
• 09The whole Rs 10.54 crore issue is fresh capital with no offer for sale, with Rs 3.97 crore for working capital, Rs 3.00 crore to repay borrowings and Rs 0.79 crore for machinery.

Risks · 11

• 01Sales are not growing. Total income was Rs 25.13 crore in FY2024, Rs 25.29 crore in FY2025 and Rs 24.59 crore in FY2026, so the FY2026 profit of Rs 1.90 crore came from margin and not from selling more.
• 02The reserves row in the published table moves the wrong way, showing Rs 4.62 crore in FY2024 and only Rs 1.65 crore in FY2025 while net worth rose over the same year, so that line cannot be read at face value.
• 03The issue is priced at 15.85 times post issue earnings on an EPS of Rs 1.83, against 10.28 times on a pre issue EPS of Rs 2.82, so the dilution takes the multiple up by half.
• 04Rs 3.00 crore of the Rs 10.54 crore issue repays borrowings, which does not add to the business.
• 05Supplying the quick commerce platform is on a sell-or-return basis, so unsold stock comes back to the company and the inventory risk stays with it.
• 06The licensed manufacturing work depends on agreements with a marketplace that can be changed or ended, and those labels belong to the marketplace, not to the company.
• 07It works from rented premises and sends dyeing, printing and embroidery to third parties, so it controls only part of the process.
• 08The company is small, with a net worth of Rs 10.30 crore and an issue of Rs 10.54 crore.
• 09Apparel manufacturing is highly competitive with low entry barriers, and fashion demand shifts season to season.
• 10This is a fixed price issue at Rs 29 per share, so there is no price discovery through bidding, and promoter holding falls from 100% to 64.97%.
• 11This is an SME issue. One lot is 4,000 shares, which is about Rs 1.16 lakh at the upper band of Rs 29, and SME shares usually trade in low volume after listing.

Dudani Retail Limited was started in December 2015. It designs, manufactures, sources and supplies apparel and related products, working in three ways at once.

It makes women's ethnic and fusion wear under its own brand, trades men's wear, and manufactures under licence for fashion and lifestyle marketplaces. Under those licence arrangements it fulfils just-in-time orders for marketplace labels including Kalini, Corsica, Roadster, Anouk Rustic, All about you, Taavi, Navyaazri, Chandbaali, Baesd, ETC, Navibhu and Here & Now. It also supplies a quick commerce platform, where goods are delivered to hubs on a sell-or-return basis, meaning unsold stock comes back to the company.

It works from rented premises in the Kartarpura Industrial Area of Jaipur, Rajasthan. Cutting, stitching, finishing, quality checks and dispatch are done in house. Fabric dyeing, printing and embroidery are handled by third-party processors.

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