Indo Count Industries Ltd (521016) closes at ₹139.40 with
a Gain of +1.10 % on
06-May-2021 with formation of a Small Red Candle on Daily Price
Chart.
About the Company : Indo Count Industries Ltd (ICIL)
is one of India’s largest home textile manufacturers. It is engaged in the
business of manufacture of bedding, quilts pillows, sleeping bags and
preparation and spinning of cotton fiber including blended cotton. The company
has focused on some of the world’s finest fashion, institutional and utility
bedding and sheets and has built significant presence across the globe. Over
the years, the company has successfully carved out a niche for itself and has
become a total bedding resource. The company’s annual capacity is 90 million
metres.
Sector Update : Positive
Strength : 1. The company is strongly moving towards the B2C and
D2C segments through high-quality product offerings across varied price points,
building visibility through digital campaigns and leveraging omnichannel and
e-commerce distribution. It has increased its focus on brand promotion in the
US, Europe, the Middle East and India through 10 active brands. Innovation and
technological capabilities along with licensed brands, patents and trademarks
will further strengthen brand offerings
2. The
management team is set to explore various opportunities to enhance capacities
and markets. The total capex will be `200 crore and will be funded by a mix of
internal accruals and debt and is expected to be operational in H2 of FY 2022.
These investments are expected to increase the revenue by `600 crore over the
next two years, post commissioning. The stock is trading at an adjusted PE
multiple of 12.82x, which is well below its industry average PE. The total debt
to equity ratio is 1.21.
Financials : Indo Count Industries Ltd has posted Net Sales / Revenue of ₹2277.00 Cr &
Net Profit of ₹201.00 Cr in
FY2020
Valuations : The Company is now
Trading at X 1.50 of its valuations (
last 4Quaters earnings considered here) with ~50 % premium .
Margin of Safety (1Yr Bond Yield: Value>1
) is now 1.0 which indicates it is now Trading at fully priced
level, price.
Whats
best in It : Home is taking centre-stage with consumer
spending increasing due to more time spent at home on account of the new ‘work
from home’ and ‘social distancing’ culture. Value-added products of health and
hygiene are witnessing unprecedented surge in demand. Factors such as reduction
in interest rates, buoyant property market, demand pick-up in suburbs and
smaller cities of US are contributing to the demand revival. US holiday retail
sales grew 8.3 per cent in 2020 over the same period in 2019. Despite
unprecedented challenges, consumers and retailers demonstrated incredible
resilience this holiday season.
If We factor its earnings/valuations, its Price arrives
at ₹318 with
consideration FY2024 earnings.
Disclaimer : We are / may going to take exposure shortly.
Join Us at Telegram # https://t.me/TheNiftyNext
Data
Source | NSE Website | Screener.In | Capital
Line | Money
Control |
No comments:
Post a Comment
Thanks for Your Valuable comments. It will make Us to Serve You in Better Way. For Any STOCKS Query ,Please Call NiftyNext +91 880 2230 836.