Sutlej Textiles & Industries Ltd, results update, The scrip is recommended as Pick of the week during 3rd week of April 2011. Below is the highlights of investment. The scrip is recommended on pick of the week on 3rd week of April, on expectation of better performance from the company, as expected the company posted superb Q4 FY11 results, The results are above our expectation.
Sutlej Textiles & Industries (Bse Code: 532782) An upside of 40 to 45% is expected from the counter:
Sutlej Textiles & Industries Ltd. is a Rajasthan based company incorporated in 2005 belonging to the KK Birla group. It is the largest producer and exporter of value added synthetic and blended dyed spun yarn in the country. It is also a prominent manufacturer of cotton and cotton blended dyed and m\'e9lange yarn and one of the few exclusive spinners for speciality yarns such as modal, lyocell and tencel in the country.
Rajasthan; Chenab Textile Mill at Kathua, Jammu & Kashmir;
Damanganga Fabrics, Damanganga Garments and Damanganga Home Textiles at Bhilad, Gujarat
Fabric manufacturing is the most important part of the Textile Industry and can be divided into three segments, Apparel, Home Textiles and Industrial/Technical textiles.
An integrated textile producer from yarn to fabric to garment to home textile Large capacity of yarn to produce all varieties of yarns from cotton to synthetics Modern assets and versatile plant suitable for multi-product mix.
Clientele : Raymonds, Digjam, Marks & Spencer, JC Penny, Next, BHS, ASDA, Carrefour, Grasim, Siyaram, Arvind, John Miller etc....
International Presence :UK, USA, Australia, France, Turkey, Argentina, Belguim, Brazil, Greece, Italy, Iran, Israel, Ireland, Russia, Spain, Sweden, Syria, UAE, Uruguay, Yugoslavia, Germany, Finland, Holland, Mauritius, Egypt, Chile,etc.....
Market cap only Rs. 285 cr as against Full year FY11 Sales of Rs 1558.46 crores and FY11 Profit of Rs.114.34 Crores.
Financial Performance: The company reported a net profit of Rs.52.59 Crores reported an increase of 261% when compared to Q3 FY11 net profit of Rs.14.53 Crores. For the entire Year FY11 the company reported a net profit of Rs.114.34 Crores as against 26.31 Crores for the full year FY10 showing 334% increase in its Net profit.
EPS for entire year ending March 2011 stoods at whooping 104.69.
Book Value of the company is Rs. 190
Regular Dividend Paying company: The company has been paying dividends as follows: FY11 - 75%, FY10 - 25%, FY09 - 10%, FY08 - 10%, FY07 - 45%.
Looking at its Book value, market cap, EPS and Future prospectus of the company, the scrip is highly underpriced and has a potential to provide 40 to 45% returns with in 2 to 3 months time frame.
Sutlej Textiles & Industries (Bse Code: 532782) An upside of 40 to 45% is expected from the counter:
Sutlej Textiles & Industries Ltd. is a Rajasthan based company incorporated in 2005 belonging to the KK Birla group. It is the largest producer and exporter of value added synthetic and blended dyed spun yarn in the country. It is also a prominent manufacturer of cotton and cotton blended dyed and m\'e9lange yarn and one of the few exclusive spinners for speciality yarns such as modal, lyocell and tencel in the country.
The company has 5 manufacturing units.
Rajasthan Textile Mills is located at Bhawanimandi, Rajasthan; Chenab Textile Mill at Kathua, Jammu & Kashmir;
Damanganga Fabrics, Damanganga Garments and Damanganga Home Textiles at Bhilad, Gujarat
Fabric manufacturing is the most important part of the Textile Industry and can be divided into three segments, Apparel, Home Textiles and Industrial/Technical textiles.
An integrated textile producer from yarn to fabric to garment to home textile Large capacity of yarn to produce all varieties of yarns from cotton to synthetics Modern assets and versatile plant suitable for multi-product mix.
Clientele : Raymonds, Digjam, Marks & Spencer, JC Penny, Next, BHS, ASDA, Carrefour, Grasim, Siyaram, Arvind, John Miller etc....
International Presence :UK, USA, Australia, France, Turkey, Argentina, Belguim, Brazil, Greece, Italy, Iran, Israel, Ireland, Russia, Spain, Sweden, Syria, UAE, Uruguay, Yugoslavia, Germany, Finland, Holland, Mauritius, Egypt, Chile,etc.....
Market cap only Rs. 285 cr as against Full year FY11 Sales of Rs 1558.46 crores and FY11 Profit of Rs.114.34 Crores.
Financial Performance: The company reported a net profit of Rs.52.59 Crores reported an increase of 261% when compared to Q3 FY11 net profit of Rs.14.53 Crores. For the entire Year FY11 the company reported a net profit of Rs.114.34 Crores as against 26.31 Crores for the full year FY10 showing 334% increase in its Net profit.
EPS for entire year ending March 2011 stoods at whooping 104.69.
Book Value of the company is Rs. 190
Regular Dividend Paying company: The company has been paying dividends as follows: FY11 - 75%, FY10 - 25%, FY09 - 10%, FY08 - 10%, FY07 - 45%.
Looking at its Book value, market cap, EPS and Future prospectus of the company, the scrip is highly underpriced and has a potential to provide 40 to 45% returns with in 2 to 3 months time frame.
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