Singer - Possible turnaround a.k.a. Symphony

Stock Opportunities Untested - but worth a good look
101

Quote" At an investment of only Rs, 15 lacs, production capacity will be increased from 90,000 units to 6,30,000" Unquote
1 Singer is essentially outsourcing part manufacturing/assemblies to the coveted sewing machines. The company had invested in developing its marketing muscle, when it entered consumer electricals, encashing its great brand name.
2 Culturally, the place for supporting a sewing machine in a house has been done away with, explainable with many options viz change of preference from tailored clothes to the readymade, lack of space and time with the homemakers, shifting hobbies, fashions - which calls for more tolerance of deviations. And above all, the availability of smaller-sized innovated products which can handle small and emergent work. That says it all for the Domestic part of Singer’s market. The commercial market was hitherto kicked off due to the government’s indifference, the erstwhile textile strike, and the costing issues etc.
For the sake of the company and the shareholders, pray for a revival in the garment stitching from the country so that much of the increased capacity of these 6,30,000 units is consumed.

1 Like
102

I still do not understand how 15 lacs can take capacity from 90000 units to 6,30,000. Even if it is outsourced. just trying to understand. I am assuming the unit here is one sewing machine.

103

@SougataG; Even I can not answer your question appropriately except citing the facts from screener dot in

  1. Company has transformed away from Manufacturing, where the contribution in FY23: was "Sale of Manufactured Goods ~4%(https://www.bseindia.com/xml-data/corpfiling/AttachHis/6afe1b0f-835e-470f-9496-414ed63a422b.pdf#page=94). Rest was from Sale of Traded goods ~96%. So ,
    Newer focus is on 6 categories including JMG, Fans, Cooktops, Water Heaters,Washing machines and Air-Coolers.
  2. Segment wise Revenue - FY23:from Sewing machines and related accessories was ~ 68% and from , Domestic appliances ~32%
  3. The Co, is embarking upon the strong brand and the recall value. They plan a dedicated approach to product improvement, both in terms of quality and range, which will be backed by marketing initiatives, after-sales service and quality improvement.
    discl. Have a tracking position for the last 7-8 years.
3 Likes