Report on 10 Textile Industries

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