Scripscan:Siyaram Silk Mills Ltd
BSE Code:503811
Cmp:230
Story:Siyaram Silk Mills is a part of Siyaram Poddar group. This is a vertically integrated textile company. This company has got in-house facilities for spinning, dyeing, weaving, finishing and also garmenting. The brand Siyaram is available at over 40,000 retail outlets all across the country. Besides that the company is also opening its own exclusive stores where it will sell Siyaram besides other brands, which the company has. Beside Siyaram the company also has Oxemberg and J Hamstead as the other brands under which their garments are sold.Increasing brand consciousness coupled with rising per capita income has stimulated demand for its various products. Vast distribution network facilitates further penetration to have pan-India presence giving it a competitive edge. Increasing capacities coupled with higher utilization is likely to further drive the volume growth.In a highly competitive market the company has successfully differentiated itself amidst both organised and unorganised players through effective branding of its products.The company expects robust demand growth to be aided by higher utilisation and increased capacities across all segments of the company.Siyaram"s vast distribution network of 1,500 dealers and 500 provides it with a competitive advantage. A network this extensive helps it make early inroads with new product lines and styles before competition can bring similar products to the market.At CMP of Rs230, the stock is trading at a very attractive valuation of 4 times its fy12 earnings of 58.The company also has got a 20 year track record of uninterrupted dividends.Given its strong brand portfolio, vast distribution network, fairly healthy balance sheet and strong dividend track record,the stock should give 30-50% return in the next 3-5 quarters.A strong buy altogether.
Saturday, December 24, 2011
Bannari Amman Spinning Mills Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target and analysis,views and outlook,multibagger
Scripscan:Bannari Amman Spinning Mills Ltd
Code:501209
Cmp:55
Story:Bannari Amman Spinning Mills Limited (BASM), established in 1995 is a reputed player & a leader in cotton yarn segment in South India. BASM is a part of the Rs. 1,200 crs. Coimbatore based Bannari Amman group.Since inception BASM has evolved to be a leader in cotton yarn spinning in South India,Commanding a premium in the market for its products.Spinning and weaving units were expanded/modernized during 2008-09.About 25% of production is exported to countries such as Israel, Mauritius, Egypt, Taiwan, South Korea etc.The company operates in a niche segment and is a focused quality player earning higher than industry margins.It has two spinning units near Dindigul with installed capacity of 1.37,232 spindles, weaving division near Palladam with installed capacity of 135 looms, processing and technical textiles near Annur with capacity to produce 24 lakh meters of coated fabric per year and 27 windmills with installed capacity 23.40 MW of power all in Tamil Nadu.The expansion of its spinning unit, and integration into fabrics and home textiles has enabled the company to compete in the export markets with larger scale of operations.The higher value addition insulates the company from pricing pressures in the highly commoditised cotton yarn industry.Bannari came with its ipo in 2005 at 135 bucks and since then have been struggling to find attention from the retail fraternity.Valuations are pretty cheap with company quoting at a forward PE of less than 2.Low discounting suggests lack of investor confidence in the company.Investors who are stuck on this scrip should hold at the moment.Any inspiring announcement or some aggressive developments may just be the order of the day for the company.
Code:501209
Cmp:55
Story:Bannari Amman Spinning Mills Limited (BASM), established in 1995 is a reputed player & a leader in cotton yarn segment in South India. BASM is a part of the Rs. 1,200 crs. Coimbatore based Bannari Amman group.Since inception BASM has evolved to be a leader in cotton yarn spinning in South India,Commanding a premium in the market for its products.Spinning and weaving units were expanded/modernized during 2008-09.About 25% of production is exported to countries such as Israel, Mauritius, Egypt, Taiwan, South Korea etc.The company operates in a niche segment and is a focused quality player earning higher than industry margins.It has two spinning units near Dindigul with installed capacity of 1.37,232 spindles, weaving division near Palladam with installed capacity of 135 looms, processing and technical textiles near Annur with capacity to produce 24 lakh meters of coated fabric per year and 27 windmills with installed capacity 23.40 MW of power all in Tamil Nadu.The expansion of its spinning unit, and integration into fabrics and home textiles has enabled the company to compete in the export markets with larger scale of operations.The higher value addition insulates the company from pricing pressures in the highly commoditised cotton yarn industry.Bannari came with its ipo in 2005 at 135 bucks and since then have been struggling to find attention from the retail fraternity.Valuations are pretty cheap with company quoting at a forward PE of less than 2.Low discounting suggests lack of investor confidence in the company.Investors who are stuck on this scrip should hold at the moment.Any inspiring announcement or some aggressive developments may just be the order of the day for the company.
Suryalata Spinning Mills Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,views and outlook,multibagger
Scripscan:Suryalata Spinning Mills Ltd
cmp:50
code:514138
Story:Hyderabad-based Suryalata Spinning is engaged in production of Poly/Viscose blended yarns in different counts and blends for domestic as well as exports markets. Company is exporting to over 30 countries including North America South America, Middle East, Canada etc.It has installed capacity of 72,000 spindles.Its equity is just 3.27 crores with excellent profit margins and current marketcap is very low.Company is installing another 35000 spindles at capex of Rs 65 crores which will be funded by way of 40 cr debt and 25 crores Internal accruals and preferential offer money.PROMOTERS HAVE TAKEN 4 LAC CONVERTIBE WARRANTS @ Rs 110/.In Phase-II,Company plans to add another 60,000 spindles at capex of Rs 120 crores which will take its total capacity to 1,67,000 and Suryalata is targetting topline of Rs 500 cr in 2014.Suryalata has been reporting superb results due to robust demand in domestic as well as export market which resulted in higher selling realization whereas raw-material prices are under check.Current market cap of company is just Rs 17 crores as against 2011 sales of 249 crores and 2011E NP of 20 crores. Stock is trading at less than 1x FY11Eps which is really cheap considering that textile industry's prospects have brightened considerably. It may be noted that Suryalata Spinning is producing Pol/Viscose yarn and hence is not affected by sharp rise in raw cotton prices.Suryalata can definitely deliver 35% returns in the next 12-15 months period.
cmp:50
code:514138
Story:Hyderabad-based Suryalata Spinning is engaged in production of Poly/Viscose blended yarns in different counts and blends for domestic as well as exports markets. Company is exporting to over 30 countries including North America South America, Middle East, Canada etc.It has installed capacity of 72,000 spindles.Its equity is just 3.27 crores with excellent profit margins and current marketcap is very low.Company is installing another 35000 spindles at capex of Rs 65 crores which will be funded by way of 40 cr debt and 25 crores Internal accruals and preferential offer money.PROMOTERS HAVE TAKEN 4 LAC CONVERTIBE WARRANTS @ Rs 110/.In Phase-II,Company plans to add another 60,000 spindles at capex of Rs 120 crores which will take its total capacity to 1,67,000 and Suryalata is targetting topline of Rs 500 cr in 2014.Suryalata has been reporting superb results due to robust demand in domestic as well as export market which resulted in higher selling realization whereas raw-material prices are under check.Current market cap of company is just Rs 17 crores as against 2011 sales of 249 crores and 2011E NP of 20 crores. Stock is trading at less than 1x FY11Eps which is really cheap considering that textile industry's prospects have brightened considerably. It may be noted that Suryalata Spinning is producing Pol/Viscose yarn and hence is not affected by sharp rise in raw cotton prices.Suryalata can definitely deliver 35% returns in the next 12-15 months period.
Bombay Rayon Fashions Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,views and outlook,multibagger
Scripscan:Bombay Rayon Fashions Ltd
cmp:270
Traded in:Nse-bse
Story:A textile company may be an unlikely candidate to beat market returns, but the stock of Bombay Rayon Fashions has had a comparatively better run.The company manufactures fabric and garments for the domestic and export markets, allowing it to make the most of opportunities in the global and burgeoning domestic markets.Further, even while concerns over slowing developed economies loomed large, Bombay Rayon had used its large manufacturing capacities to its advantage during the previous slowdown.Retailers and manufacturers overseas had looked to consolidate suppliers to lower costs.Another factor aiding the stock was an open offer at Rs 300 for 2.84 crore (20 per cent) of the company's shares.The open offer price was at a premium of 7.5 per cent to the market price at the time of announcement.The open offer was initially meant to close by June 18 this year. It, however, faced delays, with offer eventually closed on November 23.Revenues have been steadily growing over the past two years. The company has kept up revenue growth in the current fiscal too, growing 21 per cent in the first six months.However, rising interest costs emerged a damper on profits spiralling 45 per cent for the half-year ending September. Net profits, as a result, declined by three per cent.
cmp:270
Traded in:Nse-bse
Story:A textile company may be an unlikely candidate to beat market returns, but the stock of Bombay Rayon Fashions has had a comparatively better run.The company manufactures fabric and garments for the domestic and export markets, allowing it to make the most of opportunities in the global and burgeoning domestic markets.Further, even while concerns over slowing developed economies loomed large, Bombay Rayon had used its large manufacturing capacities to its advantage during the previous slowdown.Retailers and manufacturers overseas had looked to consolidate suppliers to lower costs.Another factor aiding the stock was an open offer at Rs 300 for 2.84 crore (20 per cent) of the company's shares.The open offer price was at a premium of 7.5 per cent to the market price at the time of announcement.The open offer was initially meant to close by June 18 this year. It, however, faced delays, with offer eventually closed on November 23.Revenues have been steadily growing over the past two years. The company has kept up revenue growth in the current fiscal too, growing 21 per cent in the first six months.However, rising interest costs emerged a damper on profits spiralling 45 per cent for the half-year ending September. Net profits, as a result, declined by three per cent.
Sudar Garments Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger
Scripscan:Sudar Garments Ltd
cmp:100
Code:533332
Story:Sudar Garments is engaged in the business of manufacture of garments for men's wear, women wear and kids wear. It has manufacturing facility at Khalapur Taluk, Raigad District, Maharashtra. The company is an apparel manufacturer with capability of designing and manufacturing involving cutting, body stitching, washing, Ironing and finishing.Limited experience in handling retail or franchise business and existence of already strong retail chains and various brands in the market is a major threat to the company to establish and strengthen its retail share.Highly competitive retail market and spike in yarn and fabric prices exert pressure on margins.Despite having own brand "Glory to Glory", major part of the sales were to wholesalers and Merchant exporters.The company also lacks long-term export contracts.The Operations are subjected to high working capital requirements.It is fully dependent on the external suppliers for fabrics, which constitute 90% of the total raw material cost.Any material shortage or interruption in supply of raw materials and volatility in the prices will impact the business.The company's manufacturing operations are labor intensive and depend on the availability of the personal.Nearly 95% of the company's employees are employed on contract basis.The company derives 99% its revenues from just 5 customers.So any loss of one or more customers or reduction in their demand could adversely impact the business of the company.On the other hand, significant portion of the company sales (more than 95%) were on cash credit.Delays associated with the collection of receivables from the customers or receivables turning bad will adversely impact the business operations.The company has negative cash flows from operating activities in FY 2006, FY 2007, FY 2010 and HI FY 2011 due to increase in the trade debtors and Inventories.The company ended fy11 with 115crs in sales and 7.7crs in profit which gaves an eps figure of only 4rs.There are two basic issues here.Relative to smaller scale of operations, the company has disproportionately higher equity.Secondly, non-integrated apparel players (without own yarn / fabric manufacture) are witnessing fall in margins.Uninspiring numbers and high valuations makes me wary of the counter.Sell at rallies.
cmp:100
Code:533332
Story:Sudar Garments is engaged in the business of manufacture of garments for men's wear, women wear and kids wear. It has manufacturing facility at Khalapur Taluk, Raigad District, Maharashtra. The company is an apparel manufacturer with capability of designing and manufacturing involving cutting, body stitching, washing, Ironing and finishing.Limited experience in handling retail or franchise business and existence of already strong retail chains and various brands in the market is a major threat to the company to establish and strengthen its retail share.Highly competitive retail market and spike in yarn and fabric prices exert pressure on margins.Despite having own brand "Glory to Glory", major part of the sales were to wholesalers and Merchant exporters.The company also lacks long-term export contracts.The Operations are subjected to high working capital requirements.It is fully dependent on the external suppliers for fabrics, which constitute 90% of the total raw material cost.Any material shortage or interruption in supply of raw materials and volatility in the prices will impact the business.The company's manufacturing operations are labor intensive and depend on the availability of the personal.Nearly 95% of the company's employees are employed on contract basis.The company derives 99% its revenues from just 5 customers.So any loss of one or more customers or reduction in their demand could adversely impact the business of the company.On the other hand, significant portion of the company sales (more than 95%) were on cash credit.Delays associated with the collection of receivables from the customers or receivables turning bad will adversely impact the business operations.The company has negative cash flows from operating activities in FY 2006, FY 2007, FY 2010 and HI FY 2011 due to increase in the trade debtors and Inventories.The company ended fy11 with 115crs in sales and 7.7crs in profit which gaves an eps figure of only 4rs.There are two basic issues here.Relative to smaller scale of operations, the company has disproportionately higher equity.Secondly, non-integrated apparel players (without own yarn / fabric manufacture) are witnessing fall in margins.Uninspiring numbers and high valuations makes me wary of the counter.Sell at rallies.
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