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Silkflex Polymers: A rising star in the polymer industry?

Silkflex Polymers soars 15% on NSE SME debut! Should you buy the stock? Let’s find out.

Silkflex Polymers India Pvt Ltd has recently made waves in the industry with its listing on the National Stock Exchange (NSE) SME platform in India on May 15, 2024. The company’s shares opened at ₹60, a premium of 15.38% over the issue price of ₹52. 

Despite being a newcomer (founded in 2016), Silkflex Polymers is making waves in niche markets with its focus on eco-friendly textile printing inks and water-based wood coating polymers. 

Let’s delve deeper to see if Silkflex Polymers lives up to its rising star potential. We’ll explore their products, recent performance, and prospects to help you decide if they are a company to watch.

About Silkflex Polymers (India) Ltd  

Silkflex Polymers (India) is a leading distributor specialising in high-quality water-based wood coating polymers and textile printing inks. The trusted ‘Silkflex’ brand comes directly from its Malaysian manufacturer, Silkflex Polymers SDN BHD.

Silkflex Malaysia is a well-known producer of ink used in garment printing. They manufacture products in their Malaysian facility and distribute them worldwide through authorised partners like Silkflex Polymers (India). It supplies its products to countries like Thailand, India, Russia, Turkey, Bangladesh, Sri Lanka, and Indonesia. 

Silkflex Polymers (India) holds the sole rights for the distribution and sales of Silkflex products, as well as the usage of the brand name within India. This collaboration guarantees you will receive authentic Silkflex products, complemented by local knowledge and assistance.

Silkflex Polymers (India) Pvt Ltd provides an extensive range of over 51 wood coating polymers and 108 textile printing inks. This extensive range caters to diverse printing and finishing needs across various industries.

With a team of 28 dedicated employees as of December 31, 2023, Silkflex Polymers (India) is committed to providing excellent customer service and support.

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Industry overview 

As per a report, by 2024, the global textile industry will be worth about $748 billion and is projected to reach $889.24 billion by 2029 at a compound annual growth rate (CAGR) of 3.52% for the period under review (2024-2029).

The market for textiles is expected to increase over time, with significant competition in China, Europe, the USA and India being the leading countries.

India has one of the oldest textile industries dating back several centuries. The industry is characterised by its vast diversity, spanning from sectors that involve hand-woven and hand-spun textiles to those that are capital-intensive and operate sophisticated mills. 

Wood coatings are typically made up by layering multiple layers of drying oil, shellac, lacquer or varnish, with each layer being sanded down. On the other hand, waterborne wood coatings are made from many different resins, such as polyester, acrylic, fluoropolymer, polyurethane, waterborne powder, etc.

Also read: Textile industry in India – The foundation of fashionable clothing trends  

Silkflex Polymers listing

On May 15, 2024, Silkflex Polymers made a very successful debut on the NSE SME exchange. The stock opened at ₹60 per share, which was 15.38% more than its issue price of ₹52. The stock price briefly touched ₹63 a piece, an increase of 21.15% from the issue price.

The first day saw nearly 19.64 lakh shares of the company traded. The closing price settled at ₹58.45 per share.

The IPO, consisting entirely of fresh equity shares of 34.82 lakh shares, was heavily subscribed by retail investors, receiving 39 times more bids than shares offered. 

The proceeds from the initial public offering will be used by the company for land purchase, acquisition of new plants and machinery, working capital requirements as well as other corporate purposes.

Silkflex Polymers financials

Silkflex Polymers reported a revenue of ₹33.48 crore and a net profit of ₹2.56 crore for the year ending December 31, 2023. Their strong financial results reflect their commitment to delivering high-quality products and services. 

Here are a few key performance indicators of the company:

MetricsFor the period ended December 31, 2023March 31, 2023March 31, 2022
Revenue from Operations (₹ in lakhs) 3348.423421.332782.47
EBITDA (₹ in lakhs) 513.06259.67186.20
EBITDA Margin (%)15.32%7.59%6.69%
PAT (₹ in lakhs) 256.6678.5968.59
PAT Margin (%)7.67%2.30%2.47%
Return on Equity (%)23.91%10.11%10.96%
Debt to Equity Ratio (times)1.601.481.35
Current Ratio (times)1.071.361.46

Source: Silkflex Polymers (India) Ltd RHP 

Investment considerations


  • The company has seen its product mix change over the years, shifting to different product categories. The company sells various items and provides an extensive range of textile & garment ink products. This diversification allows them to cater to a wider range of customer segments with a variety of product offerings.
  • The business has always centred its efforts on reducing operating expenses. The company imports goods and holds them in branch offices nearer to the end user, resulting in a drastic reduction in transportation costs while not compromising on the quality of materials purchased, thus ensuring constant supply.


  • The company relies heavily on the ongoing, constant supply of items from ‘Silkflex Malaysia’. Thus, the company’s performance and profitability depend largely on them, and any discontinuance, termination, or non-renewal of the contract can significantly impact their performance.
  • Most of the company’s revenue comes from ten major customers. If any of these customers decide not to buy from the company, it could negatively impact the company’s financial health and profitability. 

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Silkflex Polymers (India) Pvt Ltd is a young company with a strong debut in the stock market. They have a niche focus on eco-friendly textile printing inks and water-based wood coating polymers, and their financials show steady growth. The IPO proceeds will allow them to expand their operations.

Overall, Silkflex Polymers possesses promising growth prospects; however, investors should remain careful of the inherent risks.

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