Shree Karni Fabcom Ltd. (SHREEKARNI)
SME CapConsumer stocks · SME cap · NSE
Shree Karni Fabcom Ltd. is an integrated technical textile manufacturer, producing fabrics for luggage, leather goods, and specialized garments. The company is expanding into high-value segments like defense, fire-retardant fabrics, and specialized outdoor equipment, leveraging its in-house manufacturing capabilities and customer relationships.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -31% YoY · margin compression · Rev +26% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹96 Cr | +26.3% | -10.3% |
| EBITDA | ₹17 Cr | +0.0% | +21.4% |
| Operating margin | 18.0% | -100 bps | +500 bps |
| PAT | ₹9 Cr | -30.8% | +50.0% |
| PAT margin | 9.4% | -284 bps | +377 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
H1 FY26 Revenue Jumps 40.73% YoY to INR107 Cr, EBITDA Up 45% with Margin Expansion to 10.15%
Shree Karni Fabcom delivered strong H1 FY26 results, driven by robust demand and improved operating performance. Management's focus on diversifying into higher-margin segments and increasing dyeing capacity utilization supports future growth and margin expansion, despite expected H1/H2 seasonality.
Revenue by Vertical (H1 FY26)
Latest issuer-disclosed distribution across 5 reported categories.
Diversification into High-Value Segments
Entering specialized garments (windcheater, rainwear, fire retardant fabrics), umbrella segment, and defense sector (Tier 2 suppliers currently, direct nomination targeted).
Global Retailer Partnerships
Approved vendor for Walmart and Target, targeting 20% of total top line from these brands next year for finished goods or raw materials.
Raw Material Diversification
Expanding into nylon (double revenue impact, high-end customers like Samsonite, Defense) and cotton (dyeing, printing, bag making for export).
Increased Dyeing Capacity & Utilization
Dyeing unit commissioned in Q1 FY26, currently 70-75% utilized, targeting 100% from December, with plans to double capacity.
Dyeing Unit Commissioning & Utilization
Dyeing unit commissioned in Q1 FY26, currently at 70-75% utilization, expected to reach 100% from December.
Planned Dyeing Capacity Doubling
Planning to double dyeing capacity; infrastructure is ready, only machines need to be ordered (3-4 months for installation).
Existing Weaving & Knitting Capacity
Weaving capacity is 18-20 lakh meters, knitting capacity is 90 tons/month. Existing setup with contract manufacturing is sufficient for up to INR300 crores revenue.
Strong Demand
The demand is really strong. This is the main favor of the business.
Favorable Import Dynamics
High shipping charges for hard luggage from China ($1,500-$1,700 vs $400-$500 earlier) are favoring domestic production.
Government Policies
Government policies are wanting not to import fabric from China and from any other countries, favoring domestic players.
Client Management Aggressiveness
VIP's new management has pumped in hefty amounts and plans aggressive growth for the next three to four years, boosting business.
Tariff Impact on Export Business
Business with Walmart/Target is currently impacted by tariffs, though management expects the tariff war to end soon.
H1/H2 Margin Disparity
Historically, H2 EBITDA margins are 6-8% higher due to school and travel season volumes, and some subsidies, leading to lower H1 margins.
High Dependency on Luggage Industry
Luggage is around 50%-60% of our business; management targets no single sector to be more than 30% by FY27-28.
Lengthy Defense Sector Nomination Process
Direct entry into the defense sector requires certifications and nominations, which is a time-consuming process.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Management explicitly compares H1 FY26 financial metrics (revenue, EBITDA, PAT) to the 'same period last year', indicating a focus on annual performance trends rather than sequential momentum.
Revenue from Operations Growth
Revenue from operations rose sharply to INR107 crores, which is up 40.73% (YoY).
EBITDA Growth
Our EBITDA showed 45% year-on-year to INR10.86 crores.
EBITDA Margin
EBITDA margin improving to 10.15% from 9.85% last year.
PAT Growth
Our PAT grew robustly by 26.77% to INR6.17 crores.
Targeted Revenue Growth
Management states they will be growing at least 25% year-on-year.
Sustainable PAT Margin Target
Management is targeting a 12-13% sustainable PAT margin annually, stating it is 100% achievable.
Gross Margin Target
Management confirms targeting gross margins greater than 30%.
Improved H1 Performance
From next year, the company will focus on other businesses not dependent on the luggage industry to improve H1 performance.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Dyeing Unit Utilization | 70-75% | Achieving 100% utilization from December and progress on doubling capacity. |
| High-Value Segment Revenue Contribution | Specialized garments ~10%, defense via Tier 2 | Contribution of 20-25% from high-value segments (defense, specialized garments) in 3 years. |
| Walmart/Target Revenue Contribution | Vendor code obtained | Achieving 20% of total top line from these global brands next year. |
| Debt Reduction | Short-term and long-term borrowings reduced in H1 FY26 | Further reduction in debt post conversion of INR18 crores of promoters' convertible warrants to equity. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
40NeutralSMA20 -10.0% / mo · MACD +
Technical chart
SHREEKARNIdaily · 1Y · AUTO-7.3%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 49.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~11.1% over last month) — short-term momentum negative.
- RSI(14) at 49 — sideways, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 47% off 52W high · 20% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 54 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 54 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 48.4%.
- Growth contributes 22/25 to the score.
Main drags
- Penalty bucket subtracts 2 points.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
- Quality is weaker at 7/20; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 38th percentile of the scored universe and 42nd percentile within Consumer. Main check: cash conversion is weak at 43/100.
Healthy Trust Lite: Promoter holding is 69.2%. Key concern: Promoter holding fell 1.6%.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 42nd pctile, median 66 · SME: 45th pctile, median 64
1 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 69.2%.
- ▸Promoter pledge is zero.
Trust risks
- ▸Promoter holding fell 1.6%.
- ▸Only 0 years of positive FCF.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 18.00
- P/B
- 2.36
- EV/EBITDA
- 9.10
- Market Cap
- 275.00Cr
Profitability
- ROE
- 14.60%
- ROCE
- 12.80%
- ROA
- 5.98%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 17.11%
- EPS 5Y
- 44.22%
- Revenue 3Y
- 17.00%
- EPS 3Y
- 49.00%
Balance Sheet
- Debt/Equity
- 0.84
- Interest Coverage
- 5.17×
- Altman Z
- 3.22
- Book Value
- 161.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- 16.00 Cr
- EPS TTM
- 21.08
Shareholding
- Promoter Hold
- 69.21%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 16%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.