About Company: The Company was converted into
public limited company on 20th March 1992. Since 1992 the company has expanded
its production capacity and is now one of the largest producers of value added
yarns in India having a turnover of approx. 600crores.
Company has
strong local customers like Grasim Industries Ltd, Arvind Mills Ltd., Siyaram
Silk Mills Ltd., Reliance Industries Ltd., Garden Silk Mills Ltd., Dicitex
Decor Ltd. It is currently exporting to over 40 countries across Europe, South
Africa, South America, Australia, Korea, Belgium, Singapore, Italy, Egypt and
the Gulf countries.
Financial Performance of Company: Company has maintained profitability
in last 5 years and consistently paid increasing dividend for last five years.
2015
|
2014
|
2013
|
2012
|
2011
|
|
Revenue
|
593.05
|
734.98
|
582.38
|
392.4
|
384.74
|
Other Income
|
0.3
|
0.29
|
1.34
|
0.62
|
0.47
|
Total Income
|
593.34
|
735.27
|
583.72
|
393.02
|
385.21
|
Expenditure
|
-543.52
|
-677.71
|
-533.94
|
-357.89
|
-354.77
|
Interest
|
-19.25
|
-23.54
|
-21.42
|
-17.62
|
-12.98
|
PBDT
|
30.57
|
34.02
|
28.37
|
17.51
|
17.46
|
Depreciation
|
-12.5
|
-11.11
|
-9.83
|
-8.94
|
-8.61
|
PBT
|
18.07
|
22.91
|
18.54
|
8.57
|
8.85
|
Tax
|
-6.18
|
-8.13
|
-6.37
|
-2.63
|
-0.65
|
Net Profit
|
11.9
|
14.78
|
12.17
|
5.94
|
8.21
|
Equity
|
8.9
|
8.9
|
8.9
|
8.9
|
8.9
|
EPS
|
13.37
|
16.6
|
13.68
|
6.67
|
9.22
|
CEPS
|
27.41
|
29.09
|
24.72
|
16.71
|
18.89
|
OPM %
|
8.4
|
7.83
|
8.55
|
8.95
|
7.91
|
NPM %
|
2.01
|
2.01
|
2.09
|
1.51
|
2.13
|
Dividend
|
25%
|
24%
|
20%
|
16%
|
15%
|
Company has recently
declared bonus shares this year in ratio of 1:4 so the equity got increased to
11.9 crores. As on 30-9-2015 company has achieved turnover of Rs 297 crores
with net profit of Rs 5.87 crores. The top line of company is affected die to week
export demand however the local demand of company products is on rise. This
year the growth is also muted but due to decreasing interest burden the NP margin
has improved and expected to improve further.
I expect that
it should deliver revenue of around 610 crores with net profit of approx. 15-16
crores resulting in EPS of 12-13 on enhanced equity base of 11.9 crores.
Stock has
come down from its recent highs of 101 to 63-65 in recent down fall which I feel
was unnecessary. Damodar is fundamentally strong company and has recently decided
to declare interim dividend and one should expect minimum Rs 1.5.
Long term
investor can consider accumulating this stock if it further goes down for target
of Rs 100.
Hi Sir, Thanks for the new stock pick. Looks like it's debt to equity ratio is high but it is coming down for last few years.
ReplyDeleteRegards,
Venu.