LARGE CAP
Invest Shoppe India
BOMBAY RAYON FASHION CMP: Rs 218.80
Bombay Rayon has grown multi-fold in the last few years. The acquisition of Italian-based brand GURU should be an additional growth driver as the company is planning to open 400 exclusive showrooms of GURU across the world under franchise model. The profitability of the company is expected to grow by around 30% CAGR over2-3 years.
BOMBAY DYEING CMP: Rs 420.55
The company still retains the numero uno position in the home textiles market. It also has interests in polyester and realty. It has prime land in Mumbai (8.5 mn sq ft) in books at legacy costs. The implied value of land works out to over Rs 2,700 crore. Also, one can expect improvement in textile business due to induction of a new management team.
MID CAP
SMC Wealth Management Services & Eastwind Capital Advisors
VARDHMAN TEXTILES CMP: Rs 160.50
It is a major integrated textile producer in India. It has seen manifold expansion and recorded a turnover of Rs 2,495 crore in FY09. It plans to consolidate its spinning units, containing 7.5 lakh spindles. It has joined hands with Japan-based Nisshinbo Textile for setting up a shirt manufacturing facility at Ludhiana to cater to high-end markets.
GARDEN SILK MILLS CMP: Rs 82.80
It is a polyester yarn manufacturer and one of the well-known fashion brands. Its net profit margin increased to 3.88% from 1.53% a year ago. Sales grew 27% and PAT went up by 224%. It has consistent track record of paying dividends. Valuations are also cheap at a PE multiple of around 5.
SMALL CAP
Invest Shoppe India & SMC Wealth Management Services
WELSPUN INDIA CMP: Rs 56.90
It is Asia’s largest and amongst world’s top four terry towel manufacturers. It has recently acquired UK brand Christy, which is an exclusive supplier to Wimbledon Tennis championship. Welspun India has sales in 32 countries for home textiles. Recently, it demerged its subsidiaries into Welspun Global brands and Welspun Investments.
SHRI LAKSHMI COTSYN CMP: Rs 94.90
The Kanpur-based company has a target of doubling its denim, terrytowel, bed-linen and cotton rich segment production in 12 months and has earmarked Rs 2,700 crore for the proposed expansion. A new unit at Rahsupur, UP, is in the process of delivering its first bullet proof vehicle DHRUV to Special Task Force. CMP fig as on Oct 15, 2009
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