Dear Readers,
I have recommended 'Salona Cotspin " for the target of 100 Rs within a 3 year which achieved today within 3 month. It is giving today 73% return who would have hold this stock within a 3 month which is a excellent return.
Friends, Passion today pays rewards and if you have good company holding no need to be worry......one day it will achieved the target.
Friends keep visiting my personal website and click on follow button............
Happy Investing!!
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Dear Readers,
I would like to inform you that my recommended Stock "Salona Cotspin Limited " is giving 52% Return today within a 2.5 months which is a again rock star return.
I have recommended Salona Cotspin Limited at 59 Rs and today it touched to 90 Rs.
Friends, Book the Profit in Salona Cotspin Limited today.
Passion pay rewards.
Happy Investing!!
Keep visiting my blog website.
Regards,
Kamlesh
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Equity Research Report
Recommendation: Buy Hold
for 3 years Target:100 Rs..
Date: 17/06/2017
SALONA COTSPIN LIMITED
By
Kamlesh Bavrva
BSE Code: 590056
NSE Code: SALONA
CMP: 59
Market Capital: 33.63
Cr.
Face Value: 10
52 Week Low / High:
27.25/73.3
Book Value: 53
Price/Book Value:
1.21
Dividend Yield (%): 1.17%
Promoter Share Pledge : Nil
Part – 1 Company Overview:
v Salona Cotspin incorporated in 1994 and it is
a Salona Group company, engaged in the manufacture of
carded and combed, ring spun greige yarns for knitting and weaving
applications, from cotton.
v The Salona
Group is a leading Indian manufacturer
and exporter of Cotton Yarn, Knitted / Woven /
Fabrics and Garments.
v The registered office and
manufacturing unit of Salona Cotspin is at Poongampalli Erode district with
an installed capacity of 11,000 spindles.
v The company specializes in 100%
cotton yarn.
v Salona
yarn is made on state–of–the–art machines.
Part2 - Company Manufacturing
Unit:
v The Unit has an installed
capacity of about 24336 Spindles producing 100% cotton combed Hosiery yarn,
Knitted Fabrics & Garments.
v The Company has installed
latest machines such as LMW Blow room with Auto bale plucker, Imported
Truetzchler-03 Card, Trumac TC 5-3 Card, LMW LC 300A V3 carding machines with
chute feed systems and imported RIETER D-35,D-40 Draw frame with autolevellers
which enables production of good quality yarn.
v With an eye on the Hosiery and
fine combed counts, the company had installed the latest version of LMW make
LK64 to produce good quality of combed hosiery yarn to meet customer's requirements.
v The Company has installed LMW
and KTTM Long frames with auto doffer and SUESSEN make Elite Compact sets to
produce compact yarn.
v The Company has also installed
the latest model imported Schlafhorst 338 & Murata 21C auto coners and
PAILUNG knitting machines to knit fabric in the premises of the company itself.
v The company has installed six
wind turbines for Captive Consumption, with a total capacity of 4.45 MW for
wind based power generation.
v To meet the requirement of
power during power interruptions and power cuts, the Company has also installed
standby generator.
Production
Capacity:
v SALONA specializes in producing 100% cotton combed
hosiery yarn and compact yarn with count ranging from 20s to 40s from 24336
spindles.
v The cotton used in the spinning process is selected
carefully for manufacturing yarn of best quality and productivity consistently.
v For maintaining the premium quality free from contamination,
the process has two types of Contamination control at Blow Room and Auto coner
before packing in cartons & bags.
v The unit has an Automatic Humidification plant supplied
by Coimbatore ABC control system
MARKETING
- EXPORTS & DOMESTIC
1. The company's finished products
such as Combed Hosiery Yarn & Knitted fabrics have good demand in domestic
and export markets.
2. Major quantity is sold in the
Tirupur Hosiery market.
3. Major customers are Exporters
of apparels.
4. Salona makes direct and
merchant sales for Export of Yarn & Fabrics to Sri Lanka, Bangladesh, Hong
Kong, South Korea, Germany, Mexico, South America, Russia etc.,
Product
range of the company includes:
v
100% Cotton Yarn
v
Ring Spin for Knitting & Weaving
v
Count – 20/1 TO 40/1
v
Carded – Semicombed & Super Combed
PRODUCTS:
MATERIAL
|
COUNT RANGE
|
DESCRIPTION
|
100% Cotton Yarn
|
Ne 10/1 to Ne
80/1
|
For Knitting and
Weaving Application made from Premium Quality Cotton
|
100% Viscose
Blended Yarn
|
Ne 10/1 to Ne
80/1
|
For Knitting and
Weaving Application
|
Ployester Cotton
Yarn
|
Ne 10/1 to Ne
80/1
|
100% cotton
regenerated yarn for towel weaving and fleece knitting
|
Ring Spun Yarn
|
Ne 10/1 to Ne
80/1
|
Suitable For High
speed knitting and weaving.
|
Compact Yarn
|
Ne 10/1 to Ne
80/1
|
Made on Suessen
Elite, Germany for weaving
|
Part3
- Salona Cotspin Shareholding Pattern:
Salona Cotspin Share holding Pattern
|
Description
|
Percent
of Share (%)
|
Promoters
|
57.52
|
Public
|
42.48
|
Total
|
100
|
Part4 - Dividend History:
| Dividends Declared |
| Announcement
Year |
Dividend Type |
Dividend (%) |
Remarks |
| 2017 |
Final |
0.06 |
Rs.0.6000 per
share(6%)Dividend |
| 2016 |
Final |
0.075 |
Rs.0.7500 per
share(7.5%)Dividend |
| 2014 |
Final |
0.12 |
Rs.1.2000 per
share(12%)Dividend |
| 2011 |
Final |
0.1 |
Rs.1.00 per
share(10%)Dividend |
| 2010 |
Final |
0.1 |
|
| 2007 |
Final |
0.1 |
|
| 2006 |
Final |
0.1 |
|
Part5 - Focus on - Financial Results March 2017:
Salona Cotspin Limited
|
|
Quarter Ended
|
Year Ended
|
Particulars
|
31.03.2017
|
31.03.2016
|
31.03.2017
|
31.03.2016
|
Revenue from Operations
|
4043.49
|
2909.47
|
11993.07
|
9871.75
|
Other Income
|
34.60
|
35.61
|
147.79
|
154.07
|
Total Revenue
|
4078.09
|
2945.08
|
12140.88
|
10025.82
|
Profit before tax
|
-89.21
|
-19.96
|
277.29
|
272.92
|
PAT
|
41.11
|
-7.36
|
334.28
|
226.88
|
EPS
|
0.78
|
-0.14
|
6.35
|
4.31
|
Part6 - Impact on business / threats due to:
v Variation raw
material price
v Variation in finished
goods price
v High production
cost
v Competition
v Currency
Fluctuation
Investment Rational:
1.
22%
Sale growth on YOY basis
2.
PAT increased to 47% on YOY basis.
3.
Profit from export
of Yarn. It is exporting Yarn & Fabrics to Sri Lanka, Bangladesh, Hong
Kong, South Korea, Germany, Mexico, South America, Russia
4.
In spite challenges were
in the textile industry in spinning sector due to yarn prices variation, the
Company had earned fantastic Profit during this year.
5. The company is upgrading its existing machinery in order
to produce the ultimate quality yarn adhering to international market
standards.
6.
Strong vision of Promoter Group and
maintaining high quality of products.
Recommendation:
Stock CMP is 59Rs and stock is trading at P/E 10 & TTM
EPS 6.35, Based on above all points stock may touch Rs. 100 within a 3 years time frame.
Please note:
Note: The articles are not research reports
but assimilation of information available on public domain and it should not be
treated as a research report.
Registration status with SEBI: I am not registered with SEBI
under the (Research Analyst) regulations 2014 and as per clarifications
provided by SEBI: “Any person who makes recommendation or offers an opinion
concerning securities or public offers only through public media is not
required to obtain registration as research analyst under RA Regulations”
Disclosure: It is safe to assume that I might have the discussed
companies in my portfolio and hence my point of view can be biased. Readers
should consult registered consultants before making any investments.
