SPL Industries Limited - Brands in Picture

SPL Industries Limited
Financial Overview
MARKET CAP (RS CR) 91.64
P/E 16.63
BOOK VALUE (RS) 9.70
INDUSTRY P/E 37.99
EPS (TTM) 1.90
PRICE/BOOK 3.26
FACE VALUE (RS) 10.00
Promoter Holding 67.24%
Pledged 0.00%
Company posted good figures on yoy basis. Company posted sales in December quarter 29.35Cr from 14.69 Cr corresponding quarter of previous year by 99.79%.Net profit in December quarter 1.51Cr from 0.99Cr corresponding quarter of previous year by 52.52%.
TTM Sales stood at 121.89Cr. TTM Sales is already doubled from last year’s sales 59Cr in Fy15. TTM Profit 5.50Cr from last year’s profit 0.52Cr in Fy15.
Debt to Equity is around 0.19.
Company is expected to give good quarter.

Valuation
Stock is trading with low PE as compare with the Industry PE. Company will post 6 Cr of profit on 2.90 Cr shares and Market cap of 93 Cr. Its available at low value. We all know in coming years brand are in picture. Demand of branded cloths are increasing day by day. Then SPL may be good opportunity.

About Company
 Established in 1994
 A leading Apparel Export House of India
 One of the largest vertically integrated Knitwear plants in India
 Reputed for excellent Product Development and Design capability
 Incorporated as Shivalik Prints Private Limited in 1991, name changed to SPL Industries (SPLIL) in 1994
 Company promoted by Mr. H.R. Gupta and Mr. Vijay Jindal
 A leading manufacturer & exporter of Knitted fabric and Knitted garments
 SPLIL designs, manufactures and sells a wide range of outer wear – T shirts, sweat shirts, polo shirts, etc. for top end customers in the international market
 SPLIL has five factories in Faridabad covering 500,000 square feet spread over 14 acres of prime land
 It employs about 4000 people including contract labour
SPL Capabilities

SECTION CAPACITY
Knitted Dyed Fabric 20 Tons per day
Mercerizing 05 Tons per day
Garment Washing & Dyeing 40,000 Pcs per day
Knitted Garments 750,000 Pcs month
Sweaters 100,000 Pcs per month

Strengths
 Performance fabric is our major strength for customers like GAP, J.C. Penney, Haggar ( Forever New) and Perry Ellis.
 Strong Product Development and Design Team
 Yarn and fabric development – new textures and knits in different blends
 Developing different washes and finishes on fabrics as well as garments
 CAD system for design and fashion folio presentation and knit structure designs

Risk
 Consumer Demand
 Raw Cotton Price
 Wage of workers

Customers
 Gap Inc.
 J.C. Penney Company
 Kohl’s Corporation
 Federated Department Store
 Phillips-Van Heusen Corporation
 Hartmarx Corporation
 Sears, Roebuck and Co.
 Haggar Clothing Co.
 Supreme International

Disc. Please do on your study on script.
share your views. no holding. started tracking.

4 Likes

Anyone tracking this company? Any update on future outlook?

Got a alert from screener and seems to be in attractive valuation with some turn around from balance sheet. Last few quarter also been great for the company.

What all the factors overhanging with this counter?

Are the new Margins sustainable?

Its a steal!! Company is having current assets (cash equivalent, receivables, loan advances) worth 85cr, after paying all debt. And it is trading in market at 85 cr level.

Share your thoughts.

1 Like

Posting from a blog i follow

Thanks for concise analysis. Upward price movement has already started. If we believe balance sheet figures, even at current market cap of 145 Cr with 59 Cr cash equivalents and 28 Cr free cash flow last year, valuation looks quite cheap.

Disclosure : Invested from last 6 months.

1 Like

Price went upwards because one of the large recommendation group on telegram had recommended it.

2 Likes

Was not aware about. But it’s high time this stock comes in focus. They are too passive in PR.

The stock is being promoted in twitter by a microcap guy

Hope it won’t end badly

Is there anything wrong with the Management of the Company?
As the numbers suggest nothing wrong at this point and the valuations seem to be very favourable for accumulation.
The ROCE is high, the EPS is gaining strength, its a debt free company, an the cash position is almost 50% of the market cap.
Anything that is missing?

Today, its a Rs.100 cr market cap company.
TTM sales being 117 cr.

1 Like

Can anyone please shed some light on how the operating margins have improved so much since they have stopped manufacturing and outsourcing production?

Their major clients have been from US and Europe who have significant pricing power and so, margins wouldn’t have increased much on that end. And afaik, outsourcing production is gonna increase “manufacturing” costs a bit. Since the producing company is a Shiwalik Prints, a private entity, we can’t get any info from them.

Also, does anyone know why there is no investor presentation or analyst meet?

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@ajaykumar_mali @Santosh_Sinha do you guys think it is still a good time to enter at current price?

I am currently holding this stock.

Just wanted to share that i sold out my position around one and half year ago, after attending online AGM. There was one investor who raised queries for which he was muted. There are plenty of companies worth investing, with credible management.
Also i would like to bring your attention to receivables which has increased a lot.