Report on 10 Textile Industries

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Date: 28th June, 2020

1)  Alok Industries Ltd.

 Today’s Price- Rs 50.60 paisa

 Last Year Price – Rs 3.60 paisa 

Strengths

  • Strong Annual EPS Growth
  • New 52 week High
  • Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
  • Strong cash generating ability from core business – Improving Cash Flow from operation for la 2 years
  • Stock gained more than 20% in one month
  • Strong Momentum: Price above short, medium and long term moving averages

2) Arvind Ltd.

   Today’s Price- Rs 33.05 paisa

   Last Year Price – Rs63.30 paisa

   Weaknesses

  • Companies with growing costs YoY for long term projects
  • Negative Breakdown Second support S2 (LTP < S2)
  • MFs decreased their shareholding last quarter
  • Decline in Net Profit (QoQ)
  • Decline in Quarterly Net Profit (YoY)
  • Decline in Net Profit with falling Profit Margin (QoQ)
  • Decline in Quarterly Net Profit with falling Profit Margin (YoY)
  • Degrowth in Quarterly Revenue and Profit in Recent Results
  • Declining Revenue every quarter for the past 2 quarters
  • Declining profits every quarter for the past 2 quarters
  • Annual net profit declining for last 2 years
  • Major fall in TTM Net Profit
  • Recent Results: Fall in Quarterly Revenue and Net Profit (YoY)
  • Recent Results: Declining Operating Profit Margin and Net Profits (YoY)

3) Bombay Dyeing and Manufacturing Company Ltd.

   Today’s Price- Rs 72.50 paisa

   Last Year Price – Rs 107.55 paisa

   Weaknesses

  • Red Flag: High Interest Payments Compared to Earnings
  • Negative Breakdown Third Support (LTP < S3)
  • Poor cash generated from core business – Declining Cash Flow from Operations for last 2 years
  • Degrowth in Revenue and Profit
  • Decline in Net Profit (QoQ)
  • Decline in Quarterly Net Profit (YoY)
  • Decline in Net Profit with falling Profit Margin (QoQ)
  • Decline in Quarterly Net Profit with falling Profit Margin (YoY)
  • Companies with High Debt
  • Companies with Increasing Debt
  • Degrowth in Quarterly Revenue and Profit in Recent Results
  • Declining Revenue every quarter for the past 4 quarters
  • Major fall in TTM Net Profit
  • Recent Results: Fall in Quarterly Revenue and Net Profit (YoY)
  • Recent Results: Declining Operating Profit Margin and Net Profits (YoY)

4) Eastern Silk Industries Ltd.

   Today’s Price- Rs 1.10 paisa

   Last Year Price – Rs1.20 paisa

   Strengths

  • Increasing Revenue every quarter for the past 2 quarters

5) Grasim Industries Ltd.

   Today’s Price- Rs 620.50 paisa

   Last Year Price – Rs914.50 paisa

   Strengths

  • Promoters increasing shareholding
  • Rising Net Cash Flow and Cash from Operating activity
  • Company with high TTM EPS Growth
  • Strong QoQ EPS Growth in recent results
  • Growth in Net Profit with increasing Profit Margin (QoQ)
  • Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
  • Increasing Revenue every quarter for the past 2 quarters
  • Company with Zero Promoter Pledge

6) Raymond Ltd.

   Today’s Price- Rs 287.15 paisa

   Last Year Price – Rs731.38 paisa

   Weaknesses

  • Negative Breakdown First support (LTP < S1)
  • MFs decreased their shareholding last quarter
  • Degrowth in Revenue and Profit
  • Decline in Net Profit (QoQ)
  • Decline in Quarterly Net Profit (YoY)
  • Decline in Net Profit with falling Profit Margin (QoQ)
  • Decline in Quarterly Net Profit with falling Profit Margin (YoY)
  • Degrowth in Quarterly Revenue and Profit in Recent Results
  • Declining profits every quarter for the past 2 quarters
  • Major fall in TTM Net Profit
  • Recent Results: Fall in Quarterly Revenue and Net Profit (YoY)
  • Recent Results: Declining Operating Profit Margin and Net Profits (YoY)

7) Pioneer Embroideries Ltd.

   Today’s Price- Rs 27.10  paisa

   Last Year Price – Rs23.30 paisa

   Strengths

  • High Piotroski Score – Companies with strong financials
  • Strong Annual EPS Growth
  • Effectively using Shareholders fund – Return on equity (ROE) improving since last 2 year
  • Efficient in managing Assets to generate Profits – ROA improving since last 2 year
  • Growth in Net Profit with increasing Profit Margin (QoQ)
  • Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
  • Company reducing Debt
  • Increasing profits every quarter for the past 3 quarters
  • Annual Net Profits improving for last 2 years
  • Book Value per share improving for last 2 years
  • Company with decreasing Promoter pledge
  • Stock gained more than 20% in one month
  • Companies with rising net profit margins – quarterly as well as TTM basis
  • Strong Momentum: Price above short, medium and long term moving averages

8) Vardhman Textiles Ltd.

   Today’s Price- Rs 658.80 paisa

   Last Year Price – Rs 1060.35 paisa

   Weaknesses

  • Companies with growing costs YoY for long term projects
  • Negative Breakdown Second support S2 (LTP < S2)
  • Degrowth in Revenue and Profit
  • Decline in Net Profit (QoQ)
  • Decline in Quarterly Net Profit (YoY)
  • Decline in Net Profit with falling Profit Margin (QoQ)
  • Decline in Quarterly Net Profit with falling Profit Margin (YoY)
  • Degrowth in Quarterly Revenue and Profit in Recent Results
  • Promoter decreasing their shareholding
  • Declining Net Cash Flow: Companies not able to generate net cash
  • Major fall in TTM Net Profit
  • Recent Results: Fall in Quarterly Revenue and Net Profit (YoY)
  • Recent Results: Declining Operating Profit Margin and Net Profits (YoY)
  • Near 52 Week Low

9) SRF Ltd.

   Today’s Price- Rs 3603.55 paisa

   Last Year Price – Rs 3042.65 paisa

   Strengths

  • Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
  • Increasing Revenue every quarter for the past 2 quarters
  • Strong cash generating ability from core business – Improving Cash Flow from operation for last 2 years
  • Company able to generate Net Cash – Improving Net Cash Flow for last 2 years
  • Annual Net Profits improving for last 2 years
  • Book Value per share improving for last 2 years
  • Company with Zero Promoter Pledge

10) Welspun India Ltd.

   Today’s Price- Rs 37.85 paisa

   Last Year Price – Rs 57.40 paisa

   Strengths

  • High Growth Stock with Promoters increasing shareholding
  • Promoters increasing shareholding
  • Rising Net Cash Flow and Cash from Operating activity
  • MACD Crossover above Signal Line
  • Growth in Net Profit with increasing Profit Margin (QoQ)
  • Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
  • Book Value per share improving for last 2 years
  • Company with Zero Promoter Pledge
  • Recent Results: Growth in Operating Profit with increase in operating margins (YoY)
  • Stock gained more than 20% in one month

Akshay Aggarwal
Management Trainee