This Big Textile Company is giving 7 Free Bonus Shares for Each Share held by the Shareholders. Record Date: 4th July 2025

Shine Fashions Bonus Issue: Shine Fashions (India) Ltd has announced the Bonus Issue for its shareholders in its recently held Board Meeting on 7^th June 2025. More details of this Bonus Issue Announcement is given here.

🎁 Upcoming Bonus Issue

Shine Fashions Bonus Issue:

Board approval & Corporate action
On June 6, 2025, the Board approved a bonus issue of 7 bonus shares for every 1 equity share held (i.e., a 7:1 ratio)
Record date & pending approvals
As of early June, the Board set July 4, 2025 as the record date for the bonus shares, awaiting shareholder and stock exchange approval
Next steps
Post-AGM approval and compliance filings, shares will begin trading ex-bonus shortly after the record date. Investors should note July 4 is the key date to hold shares to receive the bonus.

📈 Current Business Performance

Financial Highlights – FY 2023‑24 & H1 FY 24‑25

From their 2023–24 Annual Report:

Revenue soared from ₹21.07 Cr to ₹54.13 Cr.
EBITDA grew from ₹1.28 Cr to ₹5.26 Cr.
Net Profit (PAT) increased from ₹0.88 Cr to ₹3.91 Cr StockAnalysis confirms growth:

Revenue (TTM): ₹815.84 M, a ~50.7% increase year‑on‑year.
Net Income (TTM): ₹69.81 M, up ~78.6% Mid‑year numbers (H1 FY 24‑25) from TradeBrains:

Revenue rose ~69% from ₹20.3 Cr to ₹34.3 Cr.
Net profit improved accordingly

Profitability & Ratios

EPS ~₹23; P/E ~15–16×.
ROA ~19.8%; ROE ~47.8%.
Debt/Equity low (~0.08); Current Ratio ~1.57
Operating margin ~9.8% .

Market Performance

As of early June 2025, share price was around ₹360–378, up ~14% over the preceding month and ~89% over the prior year .
Market cap stands at ~₹100–112 Cr; P/B ~4.4–4.8×

🏭 Business Model & Strategic Growth

Origins & Expansion: Founded in 2019, the company evolved from a fabric importer/trader to a manufacturer of interlining products. In 2020, manufacturing began in Maharashtra for waistband interlinings; in 2023, they added outer fabrics like nylon terry
Exports: First export shipment commenced in 2022, signalling intent to tap international markets
Ambitious Cap‑raising: Promoters plan to raise ₹30 Cr to set up India’s first water‑jet technical textile facility through their interlining plant.
Bhiwandi Expansion: Board approved first phase investment (~₹12 Cr) to be operational mid‑2026, along with land acquisition

🔮 Future Prospects

Strengths & Opportunities

Strong fundamentals: Healthy profitability, low debt, effective margins.
Rapid growth: Revenue and PAT rose significantly over the past financial years.
Vertical integration: Transitioning from trading to manufacturing offers better control and margins.
Geographical expansion: Export initiatives position the company for global growth.
Technology upgradation: New water‑jet facility will enhance capacity and diversification into technical textiles.
Capital infusion: Raising equity to fund expansion and R&D bolsters future growth potential.

Challenges

Execution risk: Successful completion and ramp‑up of the Bhiwandi facility is crucial.
Market cycles: Textile demand can be cyclical and sensitive to macroeconomic changes.
Valuation caution: Trading at ~15–16× P/E and ~4.8× P/B demands sustained performance to justify premium.

✅ Investment Outlook

Shine Fashions presents a compelling case of a high-growth textile SME evolving through vertical integration, backed by solid financials and a clear expansion roadmap. The upcoming 7:1 bonus issue may offer liquidity and greater equity participation for current shareholders.

However, investors should monitor:

AGM approval and bonus ex-date conclusion (expected post‑July 4, 2025).
Timely implementation of the Bhiwandi manufacturing project (first phase by July 2026).
Market trends in textile and technical fabrics sectors.

🧾 Conclusion

Shine Fashions Bonus Issue:

Shine Fashions stands at a pivotal moment: a landmark bonus issue coupled with strategic investments into manufacturing and global outreach. If execution stays on track, the company is poised for sustained growth, with attractive fundamentals and expansion synergy. Still, investors should track project delivery and bonus issue completion in the coming months.

Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. News4You does not offer investment advice and does not encourage any action based on its content.

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