Anybody has done any research on Sutlej textiles and specifically have any input on the management?
Hi Karthik,
Please go through the Nirmal Bang research report on Sutlej. The report will give you a broader understanding of the company.
Thank you Smiran , will go through it.
I like the company, the recent almost cashless acquisition will give immediate boost to EPS. 25-50% upside in short-term. Long term also should be good although the young chap running the company needs to prove the Birla brand name
Yes it looks cheap compared to other textile stock even if we ignore the future growth potential.
Rohit yours is well prepared write up and good you should put the full text here rather than the link
Yes the Oudh sugar investment seems a black hole but the other Chambal deal is fair considering the market value of the land and location benefit for Sutlej the good thing I noticed is the operating cash flow has been very good for the last 3/4 years with this expansion yes in melange they should be companding more 30% market share
Please do post if anything new comes up
Regards
Thank you for you comments…
I wanted to put the text up, but the technologically challenged person that I am, I was unable to do so…the pictures in my write up were not getting added…
About Sutlej, the reasons you mentioned coupled with declining debt are the reasons why i became interested in the first place…
But I am just too wary of related party transactions I’m any company.and there were just too many for my liking…
In the textile acquisition from chambal, the commentary given in the annual report of Sutlej vs the commentary given in chambal were totally opposite, which is funny considering the owner is the same…plus even if the land has value, there is already a unit setup there whise performance does not seem very positive, it is vastly inferior to the existing units of Sutlej…
I would rather the management invested the money in their new capacity of melange or blended yarn than buy what seems like an inferior unit of a related party…
1 Like
Having said that…the business seems statistically cheap and could make money…
My personal preference is to buy businesses which could grow well into the future…
My personal opinion, which might well be wrong, is thay ambika would be a better investment…
I hope to put up the note on ambika in my blog pretty soon…
Sutlej Textiles has given another good qtr with 50% yoy. Margin improvement by 200bps. Expansions to kick in by qtr4.
http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/807AE621_EC29_4A14_BB4A_B9DA7368FF61_143134.pdf
@rohithpotti, @indirachitra any views on the results? If the margins can be maintained, the stock does look a bargain.
anybody attended the concall yesterday can provide key takeaways ??
Sutlej Textiles & Industries
PAT12M: 200 Cr
Market-cap: 1,240 Cr
Planning for a Capex nearly equivalent to its market-cap…
Any updates here - why stock is subdued?