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Executive Summary:
➢ Gaining Economic Significance The Textile Industry is at the cusp of regaining its
earlier significance in the Indian Economy. Currently, the sector accounts for around 14% of the total industrial production and around 4% of the country's overall GDP. The sector contributes valuable foreign exchange for the country as it accounts for nearly 20% of the country's total exports.

➢ Domestic Industry - Restructuring a growth strategy: The Textile Industry underwent
a lean phase during the late nineties. This was primarily on account of excess capacity, higher interest costs on account of debt burden, Government policies favouring smallscale industries, labour laws and slowdown in the global economy among others. Declining interest rates, growing domestic economy, favourable Government policies, revival in global economy and growing potential post-quota regime augured well for the revival in the textile industry. The changing dynamics of the Indian Economy with the emergence of the upper middle class segment, higher disposable income and increasing consumerism is providing some demand side relief for the Textile Industry. Further, with mushrooming of organized retailing, demand for apparels and textiles would get a fillip. China & India - Obvious beneficiaries under the new regime: Dismantling of quotas from January 1, 2005 would give more discretionary powers to the global buyers in selecting their material sourcing avenues. Buyers in EU and US would be free to buy from the cheapest possible source. Post quota dismantling, global textile trade is expected to gather momentum. This is expected to increase from US$360 bn (2004) to US$650 bn by 2010. Costcompetitive countries like China and India could thereby increase their market share at the cost of other developed and developing nations. China is likely to become the "supplier of choice". At the same time other low cost countries like India,.

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➢ India to grab share in Home Textiles, followed by Apparels: India is likely to make the most of its strength in cotton and low cost skilled labour in increasing its pie of global textile trade. India's current exports at US$15 bn, accounts for only 4% of the total world exports, which is expected to grow to US$40 bn capturing a market share of close to 78% by 2010. India is well poised to strengthen its foothold in the global home textiles segment post dismantling of quotas, which would be followed by higher share in apparels segment. ➢ Backlash from Developed Countries against China to benefit India: Increasing dominance of China in global textile trade post quota dismantling is expected to attract backlash from developed markets like US & EU in order to protect domestic industries. Thus, protectionist measures against China, is likely to act as a boon for India. India would be second best choice for the global buyers given its established position in the global textile trade.

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2. Company Profile:
IL&FS INVESTSMART LTD: The HSBC group has acquired 73.21 per cent stake in the listed retail broking firm IL&FS Investsmart Ltd (IIL) in an all cash deal for Rs 1,084.5. crore ($261 million). The price also includes Rs 82 crore ($19.4 million) paid as part of a three-year non-compete agreement. The foreign bank, which paid Rs 200 per share, will also make an open offer to acquire up to 20 per cent of the remaining shares in Investsmart. The open offer price will be announced on Tuesday. Ms Naina Lal Kidwai, Group General Manger and CEO, HSBC in India, “We got a good deal here. We paid 1.9 times price to book value, which is much lower compared to the recent deal of UTI Securities at 5.4 times price to book and that of Geojit Financials at 12.8 times price to book value.” The stock market seems to have got wind of the deal a while ago as IIL’s share price moved up by more than 20 per in the last one week. It rose from Rs 164 on May 9 to Rs 198.80 on May 16. Under the terms of the agreement, HSBC will acquire 43.85 per cent stake in IIL from E*Trade Mauritius Ltd, an indirect wholly owned subsidiary of E*Trade Financial Corporation and an additional 29.36 per cent stake from Infrastructure Leasing and Financial Services Ltd. HSBC is expected to change the name of the broking firm once the regulatory approvals are received. IIL will have to sell its commodity business to obtain RBI approval as banks or its subsidiaries in India are not allowed to do commodity business. IL&FS INVESTSMART LIMITED, a financial services company, provides customized financial management solutions for retail customers, institutional investors, and corporate clients in India. Its retail offerings include mutual fund advisory, portfolio management, IPO advisory and distribution, and insurance advisory services, as well as equities and derivatives, and commodity trading services. The company’s institutional 2

offerings comprise financial advisory and capital-raising services, as well as investing and trading strategies. In addition, it also provides online trading services. The company was founded in 1997 and is based in Mumbai, India. FIG1. Time line of IL&FS Investsmart LTD

Promotors history IL&FS Investsmart Ltd
 Promoted by Infrastructure Leasing and Financial Services Ltd  Shareholders of IL&FS include SBI, ORIX-Japan, IFC-Washington, Credit Commercial de France, Indivest Pte Ltd(an Affiliate of Govt. of Singapore)  Business operations of the promoter  Infrastructure and Development Services : Sectors such as Surface Transport and Transportation Systems,Water Supply, Hydro Power, Special Economic Zone, Port and Environment & Social Management Group.  Investment Banking : Strategy, Asset Financing, Corporate Advisory, Capital Markets, Project Financing

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Served as CFO since October 1999 2. II. 1 Mr Sachin Joshi 40 Chief Financial Officer .Served as COO since October 1999 2. Holds a Bachelors Degree in Commerce from Bombay University and is a Chartered Accountant 1. Table No:1 Name & Qualification Mr Sandeep Presswala Age 39 Position Chief Operating Officer Functional Areas 1. IL&FS Investment Trust –I. Has over 14 years of experience in Capital Markets 3. Holds a Bachelors degree in Commerce and is a LLB(Gen). IV  The Indian Innovation Award-2005: Awarded to IL&FS by President of India Top Management: The top management of this company comprises of four directors in equal hierarchical designation. The table shows their responsibility in the organization. Has over 16 years of Financial Management experience 3. Made contributions to the following trusts: IL&FS Infrastructure Equity Fund.

Has over 15 years of industry experience in financial services 2. Bachelors in Commerce from Mumbai University and is a Cost and Works Accountant FIG 2.Mr Girish Nadkarni 37 Chief Operating Officer Chartered Accountant and Cost and Works Accountants 1. Holds a PGDM from IIM-A. Business Model Universal Broker 1 . Product Portfolio FIG 3.

Achievements Retired Individuals Chosen as The Best Performing National Financial Advisor – Retail Segment at the Corporate CNBC TV 18 National Financial Advisor Award 2006. Retail IIL uses the above M odel t 11 2 .Our Retail Offerings HN I/M I N M ass Affluent FIG 5.Client Category FIG 4.

5 bn  Accelerate branch expansion through setup of mini branches     3 Capitalize on New Business Opportunities .Business Strategy OBJECTIVES  Grow Retail Business Growth Plan  Complete business restructuring  Increase Margin Portfolio book to Rs. 7.FIG 6.

growth from new franchisees to be selective Table No: 2 1 . Reach an AUM of Rs. Delhi and Tier II cities  Existing franchisee relationships to be developed. online trading  Launch international operations in Singapore. Complete Dubai approvals  Consolidate in the niche position in mid market corporate segment and graduate to large sized deals  Deepen the focus on research and corporate relationships to grow institutional business Network Expansion Accelerated expansion through mini branches and select franchisees planned  Rapid branch expansion on a smaller format (mini branches) planned in Mumbai. 20 bn in MF assets  Strong focus on building new businesses : commodities.

B) Objective of the study: • • • To analyze the Macroeconomic factors. Different sources of data required for analysis are given in brief in the coming paragraphs. Roopesh Kumar. To analyze 10 major players in the sector. To carry out fundamental analysis of the textile sector. D) Data Sources: • Secondary data: . explained me the procedure in which the project should be carried out and which data should be taken into account for research purpose. accounting files & other related document are 2 .Publish & readily available data comes under the head of secondary data. INTRODUCTION A) Purpose: Research is the base of every new invention. As far as equity research is concern we have to create solid base of financial data.3. The approach carried out was Top-to-Bottom approach. after explaining the objective of the project. Financial statements. Parameters on which the research and analysis is to be done were jotted down. C) Research Methodology: Mr.

in.org.org.org. ○ Business Standard Newspaper 2 .texmin. ○ Other websites like .e www. ○ Website of textile ministry i.com. 1.ibef. www.nic. www. Fundamental analysis of the textile sector was carried out from various sources such as: ○ Annual Report of Textile sector for last three years. Most of the equity research firm use secondary data for their work.icicidirect.the example of this.com. Newspapers were the sources used for economic overview. 2. Websites like www.cline. www.rbi. Analysis of 10 major players was done with the information collected from: ○ Annual reports of the company and company’s website ○ Book of Financial Management by I.M. www.ibef.in ○ Other websites like www.myiris.capitaline. 1.myiris.Pandey for analysis purpose.com.www.com.

Textile Sector Overview: • It contributes 20 percent of industrial production. aided by the Technology Upgradation Fund (TUF) scheme • The sector accounts for around 14% of the total industrial production and around 4% of the country's overall GDP. which contributes to 1. an estimated US$ 6. • The industry contributes about 25 per cent share in the world trade of cotton yarn. which is the second highest employer in the country. The Indian textile industry is estimated to be around US$ 52 billion and is likely to reach 1 .31% of the total FDI inflows of the country. The sector contributes valuable foreign exchange for the country as it accounts for nearly 21% of the country's total exports.7 billion has been invested in the textiles sector. Indian textile industry contributes about 22 per cent to the world spindleage and about 6 per cent to the world rotor capacity installed • In fact. • The sector employs nearly 18 per cent of employment in industrial sector and 35 million people of the country. 9 per cent of excise collections. nearly 20 percent to the country’s total export earnings and 4 per cent to the GDP. Literature survey: A.02. in the last six years.4. • The total FDI inflow in the country is US $ 450.

59 billion. accounting for almost 41 per cent of total textile exports. India's textile exports have shot up from US$ 19. Consequently. Significantly.86 per cent over the corresponding period of 2007-08. The domestic market is likely to increase from US$ 34. Indian textiles. Readymade garments (RMG) are the largest export segment. handlooms and handicrafts are exported to more than 100 countries. an increase of 4. B. the textile sector is estimated to offer an incremental revenue potential of no less than US$ 50 billion by 2014 and over US$ 125 billion by 2020. RMG exports were worth US$ 8. It is expected that India's share of exports to the world would also increase from the current 4 per cent to around 7 per cent during this period. Textiles and Apparel Trade As per the latest figures available with the Ministry of Textiles.6 billion to US$ 60 billion by 2012. registering a growth of over 15 per cent.7 billion and in spite of recession is likely to grow at 5-7 per cent in 2009-10. with the US being the largest buyer. The domestic organised garment retailing clocked a growth of 13-14 per cent for year ended March 2009.13 billion in 2007-08. The 2 . Investments in the Textile Sector The domestic textiles and apparels market in India is witnessing strong growth owing to a young population.06 billion in 200708.14 billion in 2006-07 to US$ 22.27 billion during April-December 2008. India exported textiles worth US$ 15. apparel is the second largest retail category in India. Significantly. C. During April 2008-February 2009. RMG exports from India were worth US$ 9. an increase in disposable incomes and a rapid growth in organised retail. the domestic market is estimated to grow to over US$ 50 billion by 2014. The domestic apparel retailing industry is estimated to be round US$ 2.US$ 115 billion by 2012.

Simultaneously. In an effort to promote the technical textile industry in the country. the central government has formed a committee to put in place a regulatory framework for usage of technical textile products in 2 . Textile and Apparel Sourcing India is fast establishing itself as a global textile and apparel-sourcing hub with its abundant multi-fibre raw material base. The technical textiles market which at present is around US$ 80. meditech and geotech group of technical textiles at an outlay US$ 8. is expected to touch US$ 13. Diesel and Liz Claiborne are stepping up their sourcing from India. design capability and skilled labour force. the Indian sourcing market is estimated to grow at an annual average rate of 12 per cent from an expected market size of US$ 22 billion-US$ 25 billion in 2008 to US$ 35 billion-US$ 37 billion by 2011.textile industry has attracted FDI worth US$ 850 million during August 1991 and December 2008.97 million. world's cutting edge fashion brands such as Hugo Boss. well established production bases. The government will shortly launch a US$ 122. buildtech. According to the Confederation of Indian Industry-Ernst & Young Textiles and Apparel Report 2007.42 million Technology Mission on Technical Textiles and also create a Development Council for Technical Textiles. Technical Textiles Technical or functional textiles are those textiles that have some functional properties attached to it and are different from traditional textiles that are merely used for adoration.7 million by 2012-13.1 million and growing at a healthy pace of about 12 per cent. the government has designed Centres of Excellence for agrotech. Keeping this in mind.

This enabled textile industries in Bangladesh and Sri Lanka to post higher growth rates. with the WTO replacing the GATT. Global Textile Scenario. up to the end of Uruguay Round in 1994. These protectionist measures were formalized in 1974 through the 'Multi Fibre Agreement (MFA)'. thereby resulting into total dismantling of quotas from January 1. quotas were imposed on Asian countries by the developed countries to curtail imports of cheaper products into their country. whose export quotas were higher than those of developing countries. Since 1974. D. ATC aimed at phasing out quotas on imports over a decade. despite Asian countries having a competitive advantage. In 1995. the Agreement on Textiles and Clothing (ATC) was signed. The quota system also favoured the under developed countries. The period between 1995 and 2005 was a period of slow phasing out of the quota restrictions completely over a period of 10 years. This allowed them to compete effectively with Asian producers.Protectionist Pre-Quota Regime: Developed economies like the US & European markets resorted to protectionist measures against low cost Asian Textiles and Garment producers since the 1950s in order to safeguard their domestic industry. Subsequently. many non-Asian countries enjoyed the quota and duty free access to the developed markets. As a result. 2005. which were part of the MFA. 16% of textiles / garment items were removed from quota restrictions 2 .different areas . trade in global textiles and clothing industry were governed by over 1300 bilateral quotas. despite having poor raw-material base.

They predict a substantial increase in market shares for China and India. This was expanded to 18% by 2002 and fully phased out by January 2005. Dismantling of Quotas – Ushering in a New Era Indian textiles industry is at the crossroads with the phasing out of quota regime on January 1. China dominated the apparel market in the two countries with a market share of 70%. 2 . This was despite the close proximity of other powerful competitors such as India. constituting 4% share of the global textile import market. Pakistan. Bangladesh. share the finding that some Asian countries are most likely to benefit from the dismantling of the quotas. India is expected to emerge as the world's second most important textile / garment manufacturing centre. US imports of cotton pillowcases and cotton sheets were the highest from India at 20% and 18% respectively. Impact of the expiry of agreement on textiles and clothing (ATC) on India ➢ Most of the studies conducted to estimate the impact of ATC expiry on textile trade.from 1995 with the ATC coming in place. and 7 million in allied sectors. Over the last few years. Vietnam and Indonesia. The potential translates to creation of 12 million job opportunities. as compared to China's 16% share. Though small. According to a recent study by CRISIL. preparations have been on for meeting this challenge and opportunity by revamping textile legislation. India's textile exports amounted to around US$15 bn. the Indian textile and apparel industry can achieve a potential size of US$ 85 billion by 2010. 2005 and the full integration of the textiles sector in the WTO (Box 7. 5 million directly in the textile industry.1). with a domestic market size of US$ 45 billion and nearly 60 per cent of exports comprising of garments. E.

➢ India has a natural competitive advantage in terms of a strong and large multi-fibre base. weaving. 40. Bangladesh and Pakistan. These include: ○ More than 60 per cent of the fabric production is decentralized in the power loom sector.quota regime with increased international trade and competition. a number of constraints continue to restrict the growth of Indian textile markets abroad. Assuming a capital-to-turnover ratio of one. Despite India’s comparative advantage. Further. which is unable to compete with the cheaper and flawless fabric from state of the art plants of China or Taiwan. abundant cheap skilled labour and presence across the entire value chain of the industry ranging from spinning. ○ Infrastructure constraints. volume and value of products as well as competitive strengths vis-à-vis countries like China. and madeups to manufacturers of garments. 1 . there is an increasing trend from the world buyers towards reducing the number of vendors and opting for vertically integrated companies to eliminate inefficiencies in the supply chain. ○ Emergence of Preferential Trade Arrangements (PTA) as an important factor in the global textile trade. ➢ Close attention needs to be paid to the composition. Textiles contribute around 20 per cent of India’s total annual export earnings. Indian textile industry needs to make for more investments in the coming years to capitalse on the post quota regime opportunities. Enhanced efficiency and productivity is a must to meet this emerging challenge of global competition. But. Sri Lanka.000 crore in the next six years to achieve the vision of reaching the textile and clothing exports target of US$ 40 billion by 2010 and to meet the growing domestic demand. with prices expected to fall in the post. 1. there is a need to invest Rs. ➢ The Indian companies have been expanding capacities in anticipation of the opportunities emerging from the phase-out of the quota system. such an advantage may not be enough.

S market: Fig 7. increase in investment ceilings. Apart from the setting up of the Technology Upgradation Fund Scheme (TUFS). and Textile Centres Infrastructure Development Scheme. The following charts shows Market share of various countries in Pre-Quota and Post-Quota regime to the U. Pre-Quota & Post-Quata Regim to US Market AFTER (Estimated) Bangla 2% Thailand Others 15% 3% Mexico 3% Rest of America Hong 6% Kong 6% India 15% China 50% 1 . FDI is freely allowed in the sector. Basic customs duty on designated textile machinery and spare parts has been reduced and the Additional Excise Duty on Textiles & Textile Articles (AT&T) and Additional Excise Duty (Goods of Special Importance) Act has been abolished. and introduction of a Technology Mission on Cotton to improve the productivity and quality of cotton. remain as the major challenges before the Indian textile industry. ➢ Several steps have already been taken to improve India’s textile industry. de-reservation of the garments sector. these include new schemes of Apparel Parks for Exports.➢ Ensuring a technology-induced self-sustained and multi-fibre base to enlarge its share in global exports of textiles and clothing. and maintaining its present leading position in the domestic market despite the removal of import restrictions.

and apparel-making enterprises. possibilities of running smaller lots. finishing.1. Structure of textile industry: The Indian Textile industry has a complex structure.11Mn 2100 Units 77000 Units (Mostly Small Scale) 2 .9 Mn Powerloom s. Silk. Man-made Processed Yarn Yarn • 1140 SSI Units 1566 Large Scale Units Fabric Garments • • • #UNITS • Handlooms -3. Wool. while on the other hand are the numerous small-scale independent units. non-integrated spinning. research and development and brand building. per se. Small size does not present economies of scale and hence reduces the absolute margin available that could have been used into technological advancement. Jute. However the negatives are more than the positives in the Indian context. India’s textile industry comprises mostly small-scale. Table NO: 3 Switch PROCESS Raw Material Spin Weave/ Knit Weaving/ Knitting Units (Garment / Apparel) Processing Spinning Mills UNIT Processing Units Apparel Manufacturers Composite Mills OUTPUT Fibre Cotton. Rather it has positives attached to it like check of price rise for consumers. is not bad. On one hand it is marked by the presence of large-scale production organized players. Fragmentation in the industry. The figure below depicts the Overall value chain and the number and type of units within the industry.F.85Mn Organised Sector0. weaving.

2 per cent per year. handlooms. With an installed capacity of 40 million spindles. The knitting industry concentrated primarily in the unorganized sector.6 Percent and 9. India accounts for about 22 Percent of the world’s spindle capacity. drive n primarily by the small scale. Fabric output has been growing at 5. income generator. There has also been phenomenal ten-fold growth in the export of filament yarn since the year 1996-97. from 1990 to 2004. The decentralized sector produces around 95% of the total cloth in and is the major employer. Knitting is concentrated primarily concentrated in cities of Tirupur and Ludhiana located in southern and northern India respectively. each producing 250-300 metres in an eight-hour shift.Spinning: From the statistics it can be seen that there has been nearly two-fold increase in the export of blended and non-cotton spun yarn.5 per cent a year between 1990 and 2003. Cotton yarn contributes to about 80% of the total value of yarn exports Yarn production has been growing at a compounded annual growth rate of 4.5 per cent a year. as well as export earner for the weaving the country and knitting industry. Weaving and Knitting: The weaving sector ranges from the handloom units producing around 5 metres a day to mills with advanced machines. The non-mill sector is also referred to as the Decentralized Sector that includes powerlooms. independent powerloom sector. 2 . While man-made and blended yarns grew at annual rates of 8.1 per cent respectively. production of cotton yarn grew at a lower rate of 3. only a handful of large organized players. and the hosiery sector.

accounting for 12% of the country's total exports.Fabric processing: The processing sector is one of the weak links in the textile supply chain. Labour cost is one of the major factors in deciding the total cost of production. Garment & Apparel sector is structurally a low wage labour-intensive industry. Hand Processors will be phased out in a process. Apparel segment is one of the least capital-intensive segments in the entire textile chain. Fixed capital cost per unit of production is lowest as compared to spinning & weaving. Garment Manufacturing: Garment manufacturing is one of the most fragmented sectors of the Indian textile industry. both. 2 . sewing and furnishing are the three major operations in the garment sector. Power processing units can be divided into Independent Process Houses that do job work and those with composite mills that process their own fabric. Around 89 per cent of power processing units are Independent. The competitive advantage of players in this market segment is dependent on the ability to produce designs that capture and influence tastes and preferences of consumers in addition to cost effectiveness. in certain cases. Cutting.5 per cent of the total number of processing units. The garment industry comprises manufacturers of ready-made garments for either the domestic or export markets or. The processing industry is dominated by Hand processing which constitutes 82. processing and even other textile manufacturing. The apparel industry is one of India's largest foreign exchange earners. It constitutes nearly 69%of the total cost and as a result of this lead to relocation of production base many times. Up gradation in this segment is also intended to promote integrated large units with an improved quality and lower cost structure.

Exports: Exports of textiles and clothing from India have also been growing strongly over the last 10-15 years. both India and China are expected to almost double their market share in the global apparel market. in percentage terms its share in total exports has declined from 28. design and retailing complexes and value-added diversified production such as ‘technical’ textiles.4% to US$13. So far. The sector accounts for nearly 20% of the country's total exports. China is undoubtedly expected to emerge as the biggest beneficiary of the dismantling of quotas even in the apparel segment. However. With a consistent growth of nearly 5 per cent in the domestic market and the opening up of exports options post MFA. textiles exports have grown at a CAGR of 6. During the last decade. the government has introduced a number of progressive steps. The fall in contribution to total exports is primarily due to rising contribution from the services sectors like IT to the total exports. India’s textile industry is poised to grow further and take up a more significant position in the domestic and global markets. 2 . Government policies In an effort to increase India's share in the world textile market.7% (FY1995) to 20. from FY1994 to FY2009.7% (FY2009). brand names. Following is Break-Up of Exports of India over the years: H.7% is significant enough to make an impact on the Indian Economy. G.2 bn. 20. To some extent the slowdown in the textile industry is also reflected in these numbers. textile exports in value terms have shown steady increase over the years. Under the post quota regime. Though.The focus of the industry is increasingly shifting towards marketing. the textile industry has played a significant role in the country's exports contributing valuable foreign exchange for the country.

38 billion. Moreover. and a weak weaving and processing sector. 2008-09 was a challenging year due to the slowdown in the markets of importing countries. high cotton prices. high interest rates and tight credit availability.• De-reservation of readymade garments. • Technology Mission on Cotton was launched in February 2000 to make quality raw material available at competitive prices. 40 textile parks are being set up under the Scheme for Integrated Textile Parks (SITP) which will attract an investment of US$ 4. • Technology Up gradation Fund Scheme (TUFS) which was launched to facilitate the modernization and up gradation of the textiles industry in 1999 has been given further extension till 2011-12. hosiery and knitwear from the small-scale industries sector in end-2000. . 1 . the Indian textile industry continues to be characterized by a high level of fragmentation across the value chain. • Major Schemes: The other number of schemes launched for the improvement of quality and modernization of technology were: ○ Technology Mission on Cotton (TMC) ○ Generalized System of Preferences (GSP) Scheme ○ Powerloom Schemes ○ Textile Workers’ Rehabilitation Fund Scheme (TWRFS) ○ Jute Technology Mission (JTM) ○ Jute Manufactures Development Council ○ National Centre for Jute Diversification I.IMPACT OF UNION BUDGET 2009-10 For the Indian textile industry.

as weak demand 2 . overcapacity will compel polyester producers to pass on the benefit of lower input prices to consumers. Since 2006-07. Cotton yarn and cotton Cotton yarn demand is expected to grow at a CAGR of 3-4 per cent (volume terms) in the medium-term. the overcapacity situation is likely to persist. MMF Polyester demand is estimated to grow by 8-9 per cent. which accounts for 60 per cent of total demand. particularly in the spinning segment. capacity has increased at a CAGR of 18 per cent. Polyester feedstock (PTA and MEG) prices are expected to decline from their 2008-09 levels due to an easing demand-supply situation in the feedstock markets and the softening of crude oil prices from their peak levels. leading to continued margin pressure. Margins of exporters have not improved despite 20 per cent rupee depreciation from January 2008 to June 2009. However.Measures taken so far to boost the sector. However. which include a 2 per cent duty credit scrip on exports to the EU and US and an interest subvention of 2 per cent on pre and post shipment export credit. have only had a marginally positive impact. while demand has increased at a CAGR of only 8 per cent. However. Readymade garments Garment exports have been severely impacted post September 2008 on account of the economic slowdown in the US and the EU27. Despite this. supported by the domestic market. CRISIL Research expects the polyester industry to be plagued by overcapacity over the next 2 years. CRISIL Research expects a bumper Indian cotton crop and the easing of the global demand-supply situation to lead to cotton prices softening to levels of Rs 52-57 per kg in cotton season 2009-10. overcapacity will compel spinners to pass on the benefit of lower cotton prices to consumers.

IMPACT FACTOR: A) The excise duty on pure cotton textiles beyond the fibre stage which had been reduced to zero in the stimulus package has been restored to a 4 per cent optional duty. companies with accumulated CENVAT credit were left with no avenue to use that credit. 2 . margins of manufacturers are under pressure as they have had to resort to discounting in order to push volumes. The extension of 2 per cent interest subvention on pre and post shipment export credit by a period of six months till March 31. The highly fragmented nature of the industry and a weak weaving and processing sector has hindered India's attempts to gain a larger share of the global apparel market. India's market share (in value terms) in both.forced them to pass on the benefit to customers. has remained stagnant at 5. B. While this will increase polyester prices by Rs 2. companies will be able to utilise their accumulated CENVAT credit. it will not affect demand as polyester continues to be cheaper than cotton and substitution will continue. C). with the excise duty being restored to its earlier 4 per cent optional level. 2010. When the excise duty had been reduced to zero. Greater investments in the weaving and processing segment hold the key to improving India's competitiveness in the global apparel market.7 per cent (January-March 2009 vis-à-vis January-March 2008) and 3. Although the domestic market has continued to exhibit growth of 6-7 per cent.) The excise duty on man-made fibres and yarns has been raised to 8 per cent from the earlier level of 4 per cent. Now.5 per kg.6 per cent (January-December 2008 vis-à-vis January-December 2007) respectively. the US and the EU. will result in interest costs for exporters declining by around 1 per cent.

5.  Low cost skilled labour  Growing domestic markets  Dismantling of Quotas  Indian textile machinery manufacturers are able to produce at competitive prices sophisticated machines of higher speed and production capability. Industry SWOT Analysis: Strengths:  Abundant raw material availability which is allowing the industry to control costs and reduce overall lead times across the value chain. 2 .  Historical regulations had affected the industry a lot and also had resulted in a complex industry structure. which is supported by the well developed IT capabilities of Indian firms Weakness:  Fragmented industry.  Technology obsolescence has resulted in the need for significant technology investments to achieve world class quality  India's logistic disadvantage due to its geographical location can give it a major thumbs-down in global trade. which is leading to lower ability to expand and emerge as world-class players.  Lower cost competitiveness has hampered the ability to compete with lower cost global players.

 Threats from new entrants: smaller players who cannot venture into the global markets are flooding the domestic markets with excess supply. Infrastructure and cost competency give it an edge As one can comprehend from the above analysis. thus weakening the pricing scenario  China is the biggest threat to India’s textile industry. Threats:  Increasing competition from domestic as well as global players. the potential for the sector's growth are ample. China’s scale.  Should keep focus on new product development.Opportunities:  Rising income and growing purchasing power  Should invest in trend forecasting to enable the growth of the industry.  Quota restrictions on china till 2008.  A rapid slowdown in the denim cycle poses risks to fabric players. Consolidation of the industry and delivery of better quality at effective rates and minimum lead time would certainly help the players surmount all competitive pressures 1 .  Ecological and social awareness may lead to increase the pressure on the industry to follow international labour and environmental law. but the trick lies in competing effectively against rivals.

COMPANY ANALYSIS 2 .

Market Capitalization 691.. etc. (IRIL): Market data: Business Profile: Table No: 4 Current Price Market 699.36 52 Week High 1000. 1998. (GIL). GIL issued 3 equity shares for every 10 held by IRL Shareholders. Birla AT&T Communications Ltd. illustrious and magnificent legacy spread over a period of 125 years.71 Dividend Payout 24..55 ( (Rs in Crs) Free Float (%) 71.55 Indian Rayon and Industries Limited incorporated in 1956 is an Rs1800 Cr.14 (%) Stock Exchange BSE Late Shri Aditya Vikram Birla. The Group is consolidating its position under the chairmanship of Shri Kumar Manglam Birla taking the aspirations from the legacy of a leading industrialist. the organization of a long. Mangalore Refinery & Petrochemicals Ltd. IRL demerged it´s cement business to Grasim Industries Ltd. The company entered the retail garment segment by acquiring Madura Garments.00 52 Week Low 411.6. This acquisition brought into IRLs fold 3 . a part of Aditya Birla Group. the readymade garment division of Madura Coats Ltd.1 Aditya Birla Nuvo Ltd. multi-product and multi-locational industrial conglomerate.3 Dividend Yield (%) 0. On September 1. In return. IRL has stakes in JVs like Indo Gulf Corporation Ltd.

Rs. branded apparel. USA and Aditya Vikram Global Trading House Ltd. cement. The segment showed an increase of 31% over last year accounting Rs. Allen Solley. carbon black. Van Heusen. in the total revenue (Post- 2 . PSI Data Systems Ltd. in 07-08 to Rs. ➢ The percentage share of Textiles in the total composition seems to be decreasing by 5% but there is an increase of 15% in terms of amount i.524..620.472. Canada’s leading BPO provider on a fully diluted basis through an open offer at a total outlay of $125 million (approximately). ➢ The Total Textile. The group manufactures products such as viscose staple fibre.6 Cr Recent Development and Future plans: ➢ The company has informed that Transworks (a wholly owned subsidiary of the company) is proposing to acquire up to 100% of the shareholding in Minacs Worldwide Inc.major apparel brands like Louis Philippe.5 Cr. The subsidiaries of Indian Rayon and Industries Ltd are Birla Sun Life Insurance Company Ltd.1860. insulators and provides financial services. Transworks Inc. as compared to previous years Rs. a total of 40% increase Fig No: 8 merger).456. ➢ Garment sector showed the highest increase in revenue over the last year. viscose filament yarn. as compared to Rs.9 Cr.8 Cr. Transworks Information Services Ltd. in 0809.1 Cr. Peter England etc. Garment and VFY (All Textile Industry related segments) accounts to nearly 60% of the company’s total revenue. nonferrous metals. fertilisers. ➢ Total Revenue has been increased from Rs.e. The company has a 30 percent market share in the 12 billion rupees branded mens wear sector. 2610. Laxminarayan Investment Ltd.4 Cr. chemicals. sponge iron. Birla Technologies Ltd.

29 413.368.74 77. while on a consolidated basis sales increased by 68%.82 4th Qtr Ended Mar.15 131.36 113.72 6.20 20. This is inclusive of Rs.58 77. Garments.80 Margin (%) 4.98 crore reached by its fertilizers business.9%.Mar.➢ The combined holding of the Aditya Birla Group companies in Idea now stands at 98.81 110.18 123.1%.59 181.81 128.80 69. As there is increase in Sales.76 283.28 8.33 6.97 10.30 77.80 11. and Hindalco Industries Ltd 10. Birla TMT Holdings Ltd 44.23 Interests 111.50 8. Financial Analysis: Table No: 5 Particulars Twelve Months Ended Mar. ➢ Net Sales increased by 55% to Rs 752 crore as against Rs 484.20 44.14% holding of the Tata Group in Idea Cellular Ltd. this increases the profit in terms of amount.00 2.68 11.7%.59 158.Mar09 08 07 06 2642.46 3.03.20 7.61 43.0 0 1 1 1 43.62 5.03.90 54.90 67.10 21.16 77.80 PAT 176.50 67. Carbon Black and textiles have been the growth drivers.43 50.0 02 9 8 1371.Mar.6%.0 1844.70 76.22 77.08 43.60 49.90 Margin (%) 6.20 55. incorporating the period from September to March.15 Net sales Growth (%) EBITDA Depreciation/Amortizati on 111. Grasim Industries Ltd 7.3 1403.0 31.50 257..74 157.31 206. 1 .10 Taxes 84.61 74.01 239.80 PBT 261.50 87.74 4.69 ➢ As can be seen that the percentage growth in Net Sales is been tremendously increasing year by year and Net Profit margin is increasing steadily.2 1543.26 19.3% by acquiring the entire 48.31.07 22.74 105.20 10.95 69.50 39.20 crore in the corresponding previous quarter ended Mar’05.00 484.50 10.61 81.5 5 752.15 35. for a total consideration of Rs 44060 million constituted between the company 35.16 5.07 30.80 EBIT (Operating Profit) 111.00 4.30 69.87 7.

10 2803.56 Other Int.42 1.53 24.75 21.31 Leverage Ratio Debt/Equity 1.88 211.80 226. coverage 2.27 8.23 2.74 Valuation P/E 31.36 BV 264. On a consolidated basis the key monitorable in IRIL’s business lies in the valuation of its insurance business.21 195.85 Profitability ROE (%) 8. while that of Carbon Black and Textiles increased by 26% and 21% to Rs 155.86 7.45 6.11 P/BV 2.47 1 .40 EV 6096.50 710.26 29.➢ The revenue from Garments increased by 45%.40 crore and Rs 147 crore respectively.92 38.68 1490.52 1.94 4.89 0. 11% and 59% respectively due to higher margins.64 1.21 EV/Sales 2.32 2.01 ROCE (%) 8.98 8. All parts of the business continue to generate exciting cash to the company.46 0.15 15.00 11.63 17.99 35.39 2.62 0.58 1.97 1.32 9.14 881.84 8. 2007-08 2006-07 2005-06 18.28 0.70 Dividend Payout 24.59 36.32 182.49 P/CEPS 16.14 0.08 4.96 45.81 9. The contribution to profitability of these segments increased by 191%.25 0.05 2004-05 7.18 CEPS 39.39 2.77 11.14 Findings and Recommendations: • On a standalone basis.32 24.51 1.02 21.16 10.65 20.74 EV/Operating income 20.03 1.36 12. Ratio Analysis: Table No: 6 RATIOS 2008-09 Basic EPS (Basic and Diluted) 21.96 3.36 2.89 4.40 9.

410cr. company needs to improve the delivery capabilities and high input cost in synthetic to be more competitive. • The company is strongly believes in in-organic route and also risk in the company is minimized due to its diversification.• The growth in insurance and the positive momentum gained by BSL cannot be ignored for long. improvement in realizations and energy costs so company needs to look after it. • Looking at the other ratios. company’s performance in the recent past and company’s strategy to grow via in-organic route. • Looking from the primary valuation point of view Company is able to attain exciting P/E for this year. i would like to recommend BUY the stocks right now and investors can look at the company in the long term prospective. 1 . Company is also good in EPS and looking at the EPS over the years companys earning power over the years per share is well enough over the other major players in the industry. • Looking at the overall fundamentals. which is well above the industry P/E where as the Debt/ Equity ratio is less as compared to others in the industry. • The company had come out with the good results this year and is expected to do well in the future with the capex planned for 2009 of Rs. • Future growth in the VFY business will be determined by changing trends in fashion. • In textile segment.

In 1995 company made a Financial and Technical collaboration with Grabal. home textiles and readymade garments.2 Alok Industries Ltd. the company steadily expanded into weaving.: Market data: Table No: 7 Business Profile: Current Price Market 57. knitting.09 Dividend Payout (%) 6. Alok Industries Limited recognizes the importance of managing effectively and seeking continuous improvement in health.2 52 Week Low 54. It also controls an extensive embroidery operation Capitalization ( (Rs in Crs) 937.6. Beginning with texturising of yarn.09 Free Float (%) 71. 2 .2 Dividend Yield (%) 2.32 Stock Exchange BSE through its sister concern. Company began its work as fabric traders and suppliers to the garment industry in 1986 as a private limited company.09 52 Week High 99. viz Grabal Alok Impex Ltd. processing. safety and environmental matters as an integral part of its business activities. Grabal Alok Impex Ltd.55 Market Alok Industries is an integrated new generation textile company promoted by the Jiwrajka family. Albert Grabher Gesellshaft GmbH & Co of Austria for manufacture of embroidered products through a Joint Venture Co.

made-ups and garments besides having the largest processing capacity in India.Today. etc. In less than two decades. JC Penny. Target. It has exhibited a top line CAGR (Compounded Annual Growth Rate) of 22. ➢ Company is already supplying to renowned manufacturers. Alok is amongst the A Group listed companies of India's leading stock exchanges. Investment Highlights: ➢ Alok has the presence in the entire value chain of textiles and offers fully integrated facilities for yarn texturizing. Wal-Mart. ➢ Exports in Home textiles are growing at a higher tick. ➢ Established relationship with renowned clients in the apparel and home textiles. Fig No: 9 Key positives: ➢ Has created significant capacities to meet the increasing demand of importers.5% and bottom line CAGR of 26% in the last five years. exporters and stores like GAP. weaving. but the world over. ➢ AIL is one of the few fully integrated textile players present in the Indian textile industry. Thus it is very well positioned as a ‘One-Stop-Shoppee’ for its marquee global clients. knitting. 2 . ➢ Fruits of its massive capital expenditure to accrue over the next years. The company has consistently been in profits since 1998 and has a very sound track record. it has grown to become a diversified manufacturer of world-class apparel fabrics selling directly to garment manufacturers and exporters not only in India. because international importers want vertically integrated players with a presence from yarn to garments. This is important. processing. growth momentum expected to continue.

949 equity shares at the face value of Rs 10 each for cash at a premium of Rs 61. It has a target to take export share to 50% of the sales by FY2010 from 10% in FY07 and 27. ➢ The company is looking to improve its product mix to generate better operating margins. 1 . Garmenting & Made-ups ○ Phase II: Ring Spinning. Ltd.58 per share as a outcome of it. ERP and Building As all the above capacities of the company become fully operational. Yarn Dyeing.200 crore.06.39% in FY08. The high-end. Terry Towels. the revenues and net profit of the company are expected to grow at a CAGR of 25% and 40% respectively. Apparel Fabric. ➢ Company has converted 20 FCCB and issued & allotted 6. The total high margin business (OPM of 22-25%) share is expected to increase from 73% in FY08 to 79% in FY10E. ➢ Expansion plans: The company is undergoing expansion in two phases: ○ Phase I: Home Textiles. Recent Developments and Future plans: ➢ Alok Industries is all set to start a garment-manufacturing plant in Sayli at an investment of Rs 1.5% in FY10E. This will increase the overall OPM of the company from 19.➢ It has put plans in place to increase its exports by focused expansion in Home Textiles and Garmenting segments.5% in FY08 to 21. high-margin products like home textiles which contributed only around 17% of the business in FY05 is expected to contribute around 43% of the revenues of the company by FY07E. Processing – Normal. ➢ Directors of Alok Industries transfer’s shares to the promoter group company Niraj Realtors and shares pvt.

12 14.80 299. Mar-09 Mar-08 Mar-07 Mar-06 Mar-05 09 08 378.41 crores for the quarter ended March06.2 1418.14 89. ➢ Export (including incentives) increased to Rs 117.72 14.74 82.03.28 160.89.05 51. 31.83 244.51 59.13 Margin (%) 15.09 66.26 50.20 Net sales Growth (%) EBITDA Depreciation/Amortiz ation 75.86 14.37 40.03 8. The increase in EBITDA is due to the 1 .22% over the corresponding previous quarter.80 795.52 13.56 187.80% over the corresponding previous quarter.97 407.388.41 564.57 34.91 6.79 7.57 34.40 92.52 16.Financial Analysis: Table No:8 Particulars 4th Qtr Ended 31.58 39.57 21.15 15.80 Interests 69.98 66.26 15.08 6.65 25.40 14.22% over the previous corresponding quarter.00 Twelve Months Ended 57.25 7.74 2 15.66 Cr.54 37.14 98. where as Apparel fabrics segment achieved marginally lower sales.42 111.36 17.41 44.35 Taxes 44.71 21.49 31.72 PBT 154. The increase in exports is mainly on account of increase in the export of Home Textiles and Garments.31 5.68 123.31 15.49 71.17 42.93 16.26 89.28 38.79% to Rs.76 ➢ The Company achieved sales of Rs.28 63.16 PAT 110. a growth of 7.69 8.11 16.76 1224. ➢ EBITDA increased to Rs.74 crores for the quarter ended March-06.50 60.07 67.56 17.45 4.19 Margin (%) 7.407.09 crores as compared to Rs. Exports for the year ended increased by 26.40 137.05 42.03.51 34.50 1068. The maximum growth is witnessed in Home Textiles division.71 198.00 crores an increase of 17. a growth of 26.57 15.76 EBIT (Operating Profit) 224.76.

32 2007-08 6. Ratio Analysis: Table No: 9 RATIOS Basic EPS EPS (Diluted) CEPS BV EV Profitability ROE (%) ROCE (%) Valuation P/E P/BV P/CEPS EV/Operating income EV/Sales Leverage Ratio Debt/equity Other Int.93 593.21 4.15 15.34 7.38 8.72 2621. coverage Dividend Payout 2008-09 6.04 1.10 473.97 4.88 7.74 1.36 45.11 16.03 6.83 5.27 8.94 2.98 44.57 5.53 12.34 2.63 0.80 1.Looking at expansion plans it is expected to increase and the profit margin is been steadily increasing and is expected to increase a lot in future.46 1069.40 3.78 6.34 20.67 1723.10 2.28 2006-07 7.27 4.47 1 .78 44.37 10.16 4.21 18.39 16.32 0.56 13.75 3.00 3.20 3.benefit of backward integration into weaving and the increase in sales of value added product and higher sales.23 13.21 6.93 7.34 7.03 15.15 16.13 2.84 3.21 12.14 9.88 12.87 1.87 56.41 2.64 8.11 1.83 19.38 0.39 2005-06 2004-05 7.83 0.39 1.85 3.67 0.08 8.39 13. ➢ It can be seen from the financials over the year that the growth rate of sales have been more in the previous years but had came down in the recent past.94 31.06 0.70 50.68 19.

• Looking from the primary valuation point of view. Alok is turning out to be a fully integrated textile house. Company’s current P/E trading at 8. • The concerted efforts of the company would lead to volume growth and the changing product mix will lead to enormous improvement in the margins. • Looking at the expansion plans carried out in two phases. So it would be recommended that share of the company to be HOLD as of now and expect good returns in future 1 .Findings and Recommendations: • With its capex plans in place for backward integration. • Alok is also not averse to growing via the inorganic route. However it has a selective strategy. • Alok`s capacities in the apparel fabric segment went on stream in February 2006. as for moving up the value chain. company is believed to do well in future but the concern which will limit the share price will be dilution of equity. renowned name of the company outside the country and due to dismantling of the quotas. The increase in the share of value added products would definitely increase the realizations of the company. • Lack of EPS growth due to dilution is likely to limit the stock’s upside potential over the next 12 months.38 and comparing it with the other majors in the industry company is far low from the others. • Company has taken a lot of debt under TUF Scheme for its expansion plan making its Debt/Equity ratio high but it should be seen as smart move and not be taken as concern. The benefit of the same would get reflected in the FY07 performance.

Rs in Crs) 1198. Voiles ○ Garment: Garment Exports.e. The Company’s line of business is: ○ Fabrics: Denim. (AML) is the flagship company of Lalbhai Group was incorporated in 1931 to manufacture cotton textiles. Shirtings.3 Arvind Mills Ltd.: Market data: Table No:10 Current Price Market 57. for long has been one of the leading cotton manufacturing company in the country producing conventional suiting fabrics. shirting fabrics.25 Market Capitalisation (. the domestic branded apparel business.50 Dividend Payout (%) 16. The company has the rights to market international 2 . Khakis.46 Stock Exchange BSE Business Profile: Arvind Mills Ltd.6. sarees has moved into denim manufacturing in 1980's is currently one of the largest denim manufacturer of the world. Arvind Brands It is taking one step at a time for garment exports as it is increasing its garmentmanufacturing facility by 50% by debottlenecking.. Arvind Mills is one of the top Denim manufacturers in the world and has a wide range of products with the adoption of state of art technology.90 52 Week Low 51. the company is also developing another growth engine for itself i. Knitwear. which could be the company’s long-term valuation driver. Arvind Mills limited. AML.32 52 Week High 143. Interestingly.70 Free Float 66. The company with both international and local brands is one of the leading players in the domestic ready to wear garment industry. today is a force to reckon with in the entire chain of Textile Industry.

The company’s product offering has been accepted as mid to premium product and have been able to initiate business at large scale with few of the super premium US brands during the year. . It has tied-up with H I Lee for Lee brand in denim Jeans and with Cluett International. which includes Swedish lifestyle brand Gant. for Arrow Shirts for manufacturing and marketing in India. Lee. US. Ruggers. Wrangler. Fig No: 10 ➢ Shirts factory in Bangalore. targeting the premium US customers. which suffered in the last two quarters of the previous financial year and the first half of the current financial year has stabilized. Tommy Hilfiger and Flying Machine etc in India. the sales of fabric to outside party have come down. The company has also owns popular brands such as Newport. Revenue Composition: ➢ With more and more sales moving towards vertical route. Improved internal efficiencies have also contributed in better margins in spite drop in overall price levels. 2 . US brands Nautica and JanSport and Kipling from Belgium. Denim Major Arvind Mills is setting up a state-of-the-art design centre in New York.Recent Developments and Future Plans: ➢ Arvind Mills has plans to set up a state-of-the-art design centre in New York. Excalibre and Ruf & Tuf. ➢ Arvind Mills is going to invest Rs 45 crore over a year to expand its retail network by another 100 outlets ➢ The company has plans to launch four overseas brands in the near future. targeting the premium US customers. Knits garmenting volume for the current year grew by 11% and business has achieved stability in terms of quality and productivity.brands such as Arrow.

3 4.19 168.00 20.95 127.1.75 6. ➢ Other income during the year has increased over 4 times at Rs 22 crore. The sales for the year were down by 4% at Rs.04 39.33 8.26 2.34 92.55 96.4% equity in Arvind Brands for Rs.33 0 129.00 -1.8 1592 1 6 6 698.37 388.37 421.16 Margin (%) 7.75 17.060 Mn from ICICI venture.407.35 7.654.36 115.07 150. profit after tax stood flat Rs 127 crore 1 .72 129.1 EBIT (Operating Profit) 266.18 77.0 9 8 375.47%.99 165.47 443.22 PAT 127.03.➢ The board has approved delisting of equity shares of the company from the Calcutta Stock Exchange Association Ltd and Ahmedabad stock exchange.65 111.90 53.14 74.08 Net sales Growth (%) EBITDA Depreciation/Amortisati on 155.475.36 295.3 17.76 94.92 136. After forex loss of Rs 9 crore. which made it into a fully owned subsidiary of the company.0 31.16 16.11 33.95 13. There was 12% and 4% increase in interest and depreciation costs at Rs 130 crore and Rs 155 crore resulting in Profit before tax of Rs 136.26 0 20.75 438.05 19.47 21.93 38. Financial Analysis: Table No: 11 Particulars Twelve Months Ended MarMar09 Mar-08 Mar-07 Mar-06 05 1.73 30.71 ➢ The company witnessed a 60% decline in bottomline backed by 14. ➢ The company has acquired the balance 53.00 -6.99 4th Qtr Ended 31.1592 Crore as against Rs.99 149.70 238.23 -3.38 crores up by 5.2 1.63 -14.9 1.03.1655 Crore in the last financial year.00 14.34% fall in topline in the last quarter.88 295.84 116 129.46 444.60 74.75 47.36 Margin (%) 16.73 Interests 129.31 148.00 53.69 20.60 -4.98 PBT 136.80 17.86 101.38 Taxes 9.47 5.00 12.3 1.

34 3.27 3.19 9.75 5.46 Findings and Recommendations: • Arvind’s strong brand portfolio.57 3457.88 CEPS 19.27 0.00 Mar-06 6.05 Dividend Payout 16.74 0.97 1.96 13.61 P/BV 0.24 2.00 0.56 1764.15 1.65 60.87 EV/Operating income 7.78 0.71 12.24 9.73 6.09 2. Mar-08 6.94 9.78 2.Ratio Analysis: Table No: 12 RATIOS Mar-09 Basic EPS (Basic and Diluted) 5.81 1.78 EV 3230.63 2.31 22.15 12.43 Other Int. which it will largely use to reduce its gearing.20 2.97 25.64 65.34 3.44 Profitability ROE (%) 9.00 2 . presence across the retail pyramid and wide distribution network in branded apparels — a proxy for playing the retail story in the domestic market. • The company is expected to generate FCF of Rs1.00 Mar-05 1.85 P/CEPS 2.77 0.20 60.66 EV/Sales 2.72 1562.6b in FY10.31 2.1b in FY09 and Rs2.52 19.15 9.92 1.84 Valuation P/E 9.45 12.24 3.78 8. coverage 2.07 64.34 Mar-07 4.47 2298.98 1.39 10.61 is quite low as compared to other majors in the industry and also EPS of the company is very low as compared to others in the industry.55 15.05 0.03 Leverage Ratio Debt / Equity 2. • Looking at P/E which is at 9.09 ROCE (%) 7.26 1.25 2.74 2.89 7.69 BV 66.

The high debt was the part of development and company plans to minimize it with its FCF. • Looking at various fundamentals and also considering various ratios I would like to recommend to buy the stock but investors will have to also keep in mind high risks attached to it. • Once the benefits of quota dismantling start filtering in.• The Company’s Debt/Equity ratio is quite high but is expected to reduce it near future. 1 . as smaller players will have very limited scope in the global markets. integrated players like Arvind Mills shall stand to yield the maximum benefit.

UK. established a market in US. Made –Up’s. it is one of the largest manufacturers in the composite sector of the Indian textile industry. Gulf and Soviet Union. the Co.: Market data: Table No:13 Current Price Market 595.9 52 Week Low 260 Dividend Yield % 1. Ltd is one of India’s largest producer of textiles. A legacy that would gave rise to one of India’s most respected business houses. In 1940. It was a legacy that was born in 1879.98 52 Week High 988.4 Bombay Dyeing & Manufacturing Co. such companies have pioneered the manufacture of various chemicals and have grown to be leaders in their new fields. Bombay Dyeing has spawned dozens of other companies. ➢ Di-Methyl Terephthalate (DMT) ➢ Real Estate 2 .00 Dividend Payout (%) 31.3 Market Capitalisation ( (Rs in Crs) 2298. The Company’s line of business is: ➢ Textile: ○ Domestic – Wholesale. Ltd. Today.6. In technical and financial collaboration with world leaders. Retail Distribution ○ Exports – Grey. Along the path of growth and diversification. shipped its first batch of exports and.47 Stock Exchange BSE Business Profile: The Bombay Dyeing & Manufacturing Co. Europe. over the years. Long Length.45 Free Float 56. Industrial.

Financial Results: Table No: 14 (Rs. in crores) 3 .8bn by unlocking its property by developing two town centres in these two plants over the next five years. ➢ Strong free cash flow generator: Bombay Dyeing will be able to generate cash flows of around Rs12. its joint venture partner. . ➢ Plans to leverage the strong Bombay Dyeing brand: In the retail space. Vivaldi is positioned at the bottom end of the men`s ready-made shirts market and also includes trousers and inner wear in a limited way.5b. ➢ Comeback in the ready-made segment: Bombay Dyeing reviving its age-old shirt brand. No:11 Investment Arguments: ➢ Forward integration into PSF: The company is forward integrating by setting up a 165.Fig.000m ton PSF plant next to its DMT plant at Patalganga at a cost of around Rs3. Bombay Dyeing plans to invest close to Rs700m over the next few years to set up its own Stores and refurbish its existing franchisees. Vivaldi with the help of Proline.

During the quarter.22 -2.95 -25.68 -10.56 2.93 15.31 -1.34 6. fell from a negative 1.33 3.43 88.56 -12. Earnings per share (EPS) for the quarter were negative at Rs 1.90 -16.95 88.62 5.03. 2006 has widened.62 6.58 17. ➢ Operating margins continued to remain negative and the Net margins.11 18. the company saw a 115.Mar09 08 07 06 05 1013.Mar.2% to 3.20 -50.12 61.53 1.12 4.12% rise in loss from Rs 3.50 6.65 -4.58 67. Ratio Analysis: 1 .38 48.12 26.52 9.0 9 8 212.31 3.17 -0.9 1 8 891. Sales for the quarter declined 25. on the other hand.62 2.00 93.90 EBIT (Operating Profit) 76.06 -14.57 -7.64 6.84 36.92 3.Particulars Net sales Growth (%) EBITDA Twelve Months Ended Mar.83 Margin (%) Interests PBT Taxes PAT Margin (%) 7.0 31.28 -3.33 122.00 37.95 2. in the corresponding quarter.9% to Rs.95 33.83 4th Qtr Ended 31.56 19.44 33.34 -3.40 Depreciation/ Amortization 16.Mar.33 -1.23 51.44 -1.68 7.12 -5.95 Cr.40 -3.96 72.48 ➢ Bombay Dyeing & Mfg Company has disclosed that the loss for the quarter ending in March.62 Cr as compared to 268.92.34 0.09 33. a year ago.48% during the quarter.06 -7.87 844.51 1.68 -3.75 14.50 19.23 789.06 53.22 32.44 Cr to Rs 7.0 1012. 212.73 13.03.61 59.62 286.Mar.77 48.16 -21.94 -29.85 34.4 Cr.

14 85.82 10.49 7.55 28.99 6. while it is likely to earn Rs450mn per annum of recurring income from lease rentals FY10 onwards from 0.09 Mar-07 13.25 9.48 5.97 100.72 -7.49 1.32 -5. • The company has a market capitalization of Rs23bn and an EV of Rs28.94 1 .81 Leverage Ratio Debt/Equity 2.67 1.80 24.Table No:15 RATIOS Mar-09 Basic EPS (Basic and Diluted) 15.65 2.89 CEPS 24.83 BV 120.80 Mar-06 Mar-05 8.47 90.8b.85 21.5mn sq feet of retail property.65 1665.01 Profitability ROE (%) 13.28 449. which will further drive the growth of the company.74 0.17 0.88 -0.62 548.20 ROCE (%) 7.91 49.89 15.33 58. coverage 4.41 EV 2850.30 7.44 P/BV 4.50 3.47 Findings and Recommendations: • Bombay Dyeing is a strong play on the textiles.86 11. • The company has tremendous potential to leverage its strong brand equity and re-invent itself through its ongoing restructuring exercise.57 1.01 13.22 926.85 35.94 5.14 7.08 2.04 1.39 13. petrochemicals and real estate businesses and Company has also made a come back in its retail business.51 Valuation P/E 37.04 3.96 EV/Operating income 30.5bn.03 5.70 -2.39 0.20 Other Int.29 22.89 26.41 EV/Sales 2.53 1. Its realizable real estate value over the next 3-4 years alone is close to Rs12.67 1.94 P/CEPS 23.64 2.36 Dividend Payout 31.56 3.50 -8.40 -26.42 14.31 0. Mar-08 6.77 6.65 88.

Company is heading well above the other majors in the industry and also EPS is above the industry average. • Company is well good enough by looking at ratio valuations but the main crunch lies in how company utilizes its huge cash flows and its major plan in recent future. Company has maintained high dividend payout ratio over the years which is again good thing to look out from the investor’s point of view. • Company is having well high Debt/Equity ratio but it can be minimized with the huge cash flow company will generate from its real estate business in the coming years.• Looking at the P/E valuation. so investors need not to worry about it. So I would like to recommend investors to wait and look how company benefits from all its operation. 1 .

6.38 8.15 14. The prevailing regulatory environment.8 1 0. is a major player in the readymade garment industry across the globe.: Market data: Table No:16 Business Profile: Current Market Price Market Capitalization (Rs.17. GEL at present.18 Cr 2 . The Company was converted into Private limited company in order to expand further.10 809 452.61 1109. During March 2005 the company made a maiden public offer and has raised Rs.05 985.5 Gokaldas Exports Ltd. In Crores) Free Float % 52 Week High 52 Week Low P/E EV Dividend Yield %) Dividend Payout (%) Stock Exchange 573. as exports account for 98% of sales currently. It is one of the largest manufacturer/exporters. At that time the group expanded through partnership firms. The company is highly dependant on export growth. labour laws and reservation for small-scale industries made it conducive for growth through forming partnership firms.05 23. Gokaldas Exports Pvt Ltd and Unique Creations (Bangalore) Pvt Ltd was merged with the company with effect from 1st April 2004.47 BSE Gokaldas Exports Ltd (GEL) was incorporated in 1979. design capabilities. focus on niche segments like outerwear and expertise in managing multiple orders concurrently (it has 46 plants in and around Bangalore) make it a preferred vendor to many fashion brands and retailers around the world. women and children). The Hinduja Group in Bangalore controls the company (with promoters holding a 77% stake after its recent public offering). The company’s wide product range (for men.

Gokaldas Exports Apparel and Textile Park.Fig. The new facilities will come up in Mysore. ➢ Global sourcing capabilities and integrated facilities. Chennai and another one near Bangalore. ➢ Greater ability to manage a huge workforce. GAP. Recent Developments and Future Plans: ➢ The company will invest Rs 100 crore to set up a unit in the 400-acre special economic zone (SEZ) near Bangalore. 2 . production planning. and ensuring timely deliveries to customers and offer a diversified product range. Hyderabad. conveyors and productivity-enhancing equipment.500 employees and will produce 1. It will invest about Rs 20 crore for installing material handling systems. Old Navy. which allows it to reduce its input cost and enhance its competitiveness. ➢ The company plans to upgrade machinery at its existing units. ➢ Specialization in outerwear enables it to earn higher margins with almost 65% of its revenue coming from this segment. Tom Tailor and Lebek International. The SEZ unit will have 2. No:12 Key Positive: ➢ ‘Preferred vendor’ for some of the world’s largest and well known brands like Nike.5 million pieces a year The SEZ will be set up by group firm. ➢ High non-quota country sales. complex sourcing. ➢ The company will be investing Rs 70 crore to set up four new manufacturing units over 12 to 18 months.

52 5.23 Profit) Margin (%) Interests PBT Taxes PAT Margin (%) 9.50 0.57 55. ➢ Over 80 percent of the revenues were generated from the export of outerwear and bottoms and both these items have remained the key components to revenue generation 1 .45 37.61 4.87 81.17 EBITDA Depreciation/ 18. Sales of the fourth quarter ended March 31.94 32.15 0.94 7.42 10.79 39.68 22.07 Amortisation EBIT (Operating 82.06 4. showing an increase of 53.1 39.23 9.38 15. up 22.57 0.16 0 32.88 100.52 3..49 Cr.8 % over the previous year.88 Cr.300 million.11 39.04 45.88 6.30 22.33 ➢ GOKALDAS EXPORTS LTD.42 0 37.➢ A large laundry unit around Bangalore had commissioned in December last year to meet its capacities and to come up as complete integrated player.3 1740.11 370.56 3. ➢ The company’s net profit rose from Rs 39.08 2.2006 stood at Rs 2.52 3.12 219.72 7.04 6.58 5.7 362.69 16.99 3.62 29.30 14.29 67.45 2.85 15.41 5.47 20. In Crores) 4th Qtr Ended Mar-09 Mar-08 Mar-07 Mar-06 Mar-05 Mar-09 Mar-08 884.33 11.37 239.94 7.06 60.44 23.91 3.58 9. (GEL) had closed the financial year 2005-06 with an impressive set of numbers.42 -89.58 Cr to Rs 60.88 110.02 0.30 67.62 9.79 29.99 20. the corresponding net profit being Rs 150. Financial Results: Table No:17 Particulars Net sales Growth (%) Twelve Months Ended (Rs.49 719.49 7.8 %.29 25.69 4.66 2.40 3.8 43. Its consolidated revenue was Rs 884.3 million.71 11.32 5.16 8.88 9.

33 13. The Capex for FY 06 is Rs.31 1.81 10.94 22.24 23.60 6. deferred tax liability has also increased.10 Mar-07 2.01 41. ➢ In my opinion P/E captures the strong earnings growth potential and hence is primary valuation tool.07 Crores and the same for last year was Rs. Outerwear includes both sportswear and winter wear and bottoms include casual pants.61 in FY09 earnings which is near to on an average of the industry. Ratio Analysis: Table No:18 RATIOS Basic EPS CEPS BV Profitability ROE (%) ROCE (%) Leverage Ratio Debt/Equity Other Interest Coverage Dividend Payout Mar-09 35.68 1. As a consequence of this high Capex. 18.87 ---- Findings and Recommendations: ➢ Gokaldas Exports is the largest garment exporter in India and should definitely benefit once the dismantling of quotas effect starts increasing outsourcing trend. etc.16 ---Mar-05 7.39 ---Mar-06 5.46 17.47 Mar-08 28. denim jeans. The depreciation for FY 09 is Rs.71 5.59 6.76 118. The stock is trading at a P/E of 14.02 12. The depreciation also has been higher to the tune of 56%.85 10.80 15. linen trousers.42 54.55 2.25 70.42 73.57 Crores.86 Crores whereas the Capex for FY 08 was Rs. ➢ There is a jump of 120% in the Capex this year.22 8. chinois.10 7.00 56.15 4.94 4. 39 Crores.51 9. Premium multiple is a function of Gokaldas rapid earnings growth of 41% CAGR.61 10.25 204.70 7. on par with the growth leaders in our textile industry. 11.72 2.14 44.70 1.for the company. 2 .75 8.

➢ Company has a very well EPS and ROE as compared to other majors in the industry which implies that company is using its resources very well and it’s a good sign to investors to look in. 6. company is expected to have a better future and I would like to recommend BUY on this stock. ➢ Looking at the various ratios and expected growth of company due to dismantling of Quota restrictions. ➢ With global reforms seeming to favor India since the removal of quotas and with antisurge measures on China. we expect company’s growth to continue.6 Indo Rama Synthetics (India) Ltd: Market data: Table No:19 Business Profile: 1 .

Partially Oriented Yarn (POY). The product profile comprise of: Polyester Staple Fibre (PSF). both primarily crude derivatives are the key raw materials for the manufacture of polyester. ➢ Sales for POY were lower mainly due to sudden increase of new players in the industry.47 52 Week High 99.0 Dividend Yield % 6. Indo Rama Synthetics (India) Limited started its operations in 1989 and since then has grown to be India's largest dedicated polyester manufacturer. respectively. Prices of finished goods were tempered by the entry of 2 . ➢ The share of Yarn in the total sales has increased from 14% to 19% in 2009.8 52 Week Low 44. Fully Drawn Yarn (FDY). Indo Rama Synthetics Ltd (IRSL) is the second largest polyester manufacturer and exporter with a total of 30% share in of India's exports of polyster.Current Market Price 49. ➢ Sales for the year FY06 were more-or-less maintained at the previous year level given the fact that the sales of PSF were down by 2% mainly due to stiff competition from Cotton. IRSL has a state of the art manufacturing facility at Butibori in Nagpur with a consolidated manufacturing capacity of 300.8 Market Capitalisation (Rs in Crs) 656. Japan and DuPont.67 Dividend Payout% 76. Fig No: 13 Sales Break-Up: ➢ As can be seen from the pie charts that company is Shifting focus on value added products.51 Free Float 42. USA.31 Stock Exchange BSE Promoted by Mr. Due to sudden increase in the players. O P Lohia.000 tonnes per annum (TPA) of Polyester Fibres and Yarns in technical collaboration with Toyobo. the industry dynamics were distorted to some extend and impacted IRSL’s sales. Purified Terepthalic Acid (PTA) & Mono Ethylene Glycol (MEG).

96 124.08 7.1 66.21 3.66 Profit) Margin (%) 5.15 395.50 0.82 7.52 282.37 299.874.86 -5. Net sales of the company are increasing marginally but there is declining trend in Operating Profit margin and Profit after tax margins.78 88.59 Cr.20 million in FY 07 .95 213.78 96.77 145.59 538.28 2.88 106.smaller players and consequent excess supply mainly in the POY segment as well as lower prices of the competing cotton fibre.75 10.37 293.68 ➢ Indo Rama Synthetics India Ltd has posted 78.53 516.11 194.39 5. for the quarter ended March 31. for the Q4 FY 08-09 from Rs 538.55 46.49 36.99 Net sales Growth (%) EBITDA Depreciation/amortisatio 98. 2009 as compared to Rs 16.77 3.79 25.03.70 million for the year ended FY 08 .51 41. Financial Results: Table No:20 Particulars (Rs. ➢ Over the years.18% to Rs 516.08 1.53 24.34 PAT 51.29 5.445.663.67 -2. 2008.72 10.21 12.72 -0.61 3.11 Cr.10 million for the year ended March 31.32 6.49 PBT 67.17 Taxes 15. In crores) Twelve Months Ended 4th Qtr Ended Mar-09 Mar-08 Mar-07 Mar-06 Mar-05 31.17 Interests 29. ➢ The company has posted 26.46 94. Ratio Analysis: Table No:21 1 .65 122.72 Cr.72 243.59 80.94 1.5 Cr.41 -4.29 97.69 1.90 1.28 70.68 16.37 7.87 171.27 3. Total Income has marginally increased to Rs 19044.89 12.09. in Q4 FY 07-08.62 42. Total Income has decreased by 5. 2008.74 9.25 23.48 68.870.09 31.25 16.711.11 2. 2009 as compared to Rs 702.73 188.06 n EBIT (Operating 96.30 million for the year ended March 31.08 to Rs 19336.42 36. for the quarter ended March 31.93 252.60 6.79 18.27% decrease in profit after tax to Rs 3.98 377.83 Margin (%) 2.64 104.79 1.86 2.75 38.03.17% decrease in profit after tax to Rs 518.

21 0.40 11.76 ROCE (%) 7.38 30.26 4.69 51.07 1224.27 1.98 P/CEPS 3.74 75. • The company’s ROE has been declining over the years which are not a good sign from investors’ point of view.20 10.49 EV/Sales 0.76 1.61 12.50 1.16 6.65 1.65 Leverage Ratio Debt / equity 1.70 4. It’s due to higher input costs which lead to lower margins in the business but the company is positive on it and expects to improve it further.48 16. coverage 3.RATIOS Mar-09 Basic EPS 3.28 4.67 P/BV 0.00 5.76 1.85 3.41 5.66 EV/Operating income 12.87 Valuation P/E 12.40 0.29 Findings and Recommendations: • Looking at the Budget announcement of reducing the excise duties on finished goods to 8%.93 CEPS 13.22 1417.30 20.85 2.91 51.10 Mar-07 13.48 0.12 40.92 1349.48 1725.71 Mar-06 9.98 Mar-05 2.76 10.49 6. it is expected to enhance the competitive position of polyester versus competing fibers and would result in increased demand and sales realizations.29 Profitability ROE (%) 7.10 23.75 0.03 23.61 BV 50.33 15.69 43.04 2.81 21.94 2.39 21.92 0.16 9.31 Mar-08 5.84 Other Int.79 2. 2 .25 25.28 Dividend Payout 76.37 17.63 EV 1207.52 6.55 40.62 1.68 3.77 0.39 3.

7 Mahavir Spinning Mills Ltd: Market data: Table No:22 Business Profile: 1 .67 in 2009 which is at the average of the industry but it has a very low EPS compared to the others in the industry due to higher input costs. • The Company is expected to perform better by looking at the expansion plans of doubling the existing capacities and as also expansions are expected to be complete next year. it is recommended to the investors that company can be seen from a long term point of view and investors can BUY shares for long term and those already having shares can hold it and expects better returns. the debt of the company will be reduced thereafter. • Based on the assumptions of feedstock prices and capacity utilization rate due to doubling of capacity.• Looking at the primary valuation the company is having P/E of 12. 6.

77 52 Week High 420 52 Week Low 250.Current Market Price 283. 2 . Mahavir Spinning Mills. Superior quality and a wide product range in higher value-added products make it a preferred supplier to domestic and international manufacturers in textiles and apparels. With large capacities in yarn and vertical integration to fabric. The company caters to its international customers through an EOU.15 Dividend Yield % 1. It also has 27 tons of dyeing capacity in two units. The company has an installed capacity of 28320 spindles unit and specializes in producing fine counts. Mahavir Spinning Mills (MSML) was promoted by Vardhaman Spinning and General Mills and is managed by Chairman Paul Oswal.15 Market Capitalisation (Rs in Crs) 1635. part of the Vardhman Group.55 Dividend Payout 11. a joint venture between Marubeni Corporation and Toho Rayon Company Limited of Japan. has its operations divided into four major segments which are as follows: ➢ Yarn: The yarn segment has a total capacity of over half a million spindles.'73. Incorporated in Oct. ➢ Steel: Company produces steel ingots. Direct exports contribute 23% of revenues. forging and special steel for the capital goods industry.97 Stock Exchange BSE Incorporated in October’ 1973. VMT Spinning Company. ➢ Fibre: Engaged in producing about 22 tons of acrylic fibre and acrylic tow The company’s acquisition of Vardhman’s textile business has vertically integrated its business model. Mahavir Spinning Mills (MSML) was promoted by Vardhaman Spinning and General Mills and is managed by Chairman Paul Oswal. steel billets and rolled products for the automobile sector. Mahavir is an integrated player in the textile industry. The company has 15 units of which 4 units are dedicated to exports only ➢ Sewing thread: The sewing thread segment produces sewing and industrial sewing threads.76 Free Float 37.

2056. ➢ All the segments recorded an increase over last year except the steel segment. No: 14 Segment Revenue: ➢ The total revenue collected last year was Rs. Mahavir has differentiated itself by focusing on specialized 2 . which showed a decrease of 4% in revenue while 25% in Profit before tax. ➢ Yarn manufacturing is the main line of business and has the largest stake in the turnover and profitability of the company. With strong improvement in margins. this year showing an increase of 5%. which will drive the growth and place the company to new heights. the segment PBIT almost doubled at Rs 47.The company's subsidiaries are VMT Spinning Company Limited(VMT). there is an increasing demand for superior quality yarn. ➢ Mahavir has lined up an expansion in fabric after acquisition of Vardhman’s textile business. Fig. This segment showed an increase of 49% in PBT over the last year. a focus on value added products and aggressive expansion of capacities.09 crore in the corresponding previous quarter. as compared to Rs. Eighty percent of this will be funded by debt leveraging on low cost funds under TUF and internal accruals.54 Cr.22 Cr. Vardhman Threads Limited(VTL) and Vardhman Yarns & Threads Ltd. Future growth should be driven by initiatives to vertically integrate to fabric.94 crore as against 24. Key Positives: ➢ Mahavir plans to invest Rs12bn over FY08-09 to large-scale expansion capacities.2169. after which it offers integrated fabric capacities of 85m meters. ➢ With the growth outlook for textiles improving.

dyed. ➢ Softening steel prices adversely impacts the decline in price realizations of the steel alloy business and also the operating profitability of that business.Spindles to expand from its existing 468.yarns like compact.0 to 85 Dec'09 2 .688 units by Dec’09 ○ Fabric (m meters) from 30. hand knitting and blended yarns. The company also plans to double its capacities in fabric processing with appropriate capital investments in spinning and weaving by setting up of additional facilities in Madhya Pradesh. The FCCBs are to be listed on the Singapore Exchange. lycra. gassed mercerized. ➢ Company is the second-largest sewing thread manufacturer in India after Coats. The implementation of these projects will be in phases and is expected to extend up to 2008-09. ➢ Mahavir Spinning Mills Ltd`s board of directors have approved an Expansion-cumModernization Plan of the company entailing an expenditure exceeding Rs 1600 crore. ➢ The company has planned to expand all its existing capacities as below: ○ Yarn . This value addition is expected to drive the growth of the company.688 units to 603. With the increase in India’s apparel exports and the fiscal changes made by the government have created a level playing field and the company will be able to leverage its strong position in the sewing thread business. The proposed expansions will entail a capital expenditure of Rs 1075 crore approx. Hong Kong Branch for an issue of foreign currency convertible bonds of US$ 60 million with maturity of 5 years and 1 day. ➢ Higher than a 2-3% fall in yarn price realizations due to commodity nature of business would impact the profitability of the yarn business by 2-3% Recent Developments and Expansion Plans: ➢ The company enters into a subscription agreement with Deutsche Bank AG.

34 on EBIT (Operating 290.32 148. ➢ For the full year ended March 2006.82 494.16 Cr.49 14. a year ago.41 315.14 60.Financial Results: Table No:23 Particulars Twelve Months Ended MarMar09 Mar-08 Mar-07 06 1889.44 218.78 (Rs.24 97.32 PAT 10.33 88.93% to Rs. Raw material cost as a % to net sales (net of stock adjustment) decreased from 48% to 42% while Staff cost and other expenditure increased from 5% and 31% to 6% and 34% respectively.07 71. In Crore) 4th Qtr Ended Mar05 31.39 Margin (%) 51.49 11.14 71. During the quarter.4 841.24 82.67 5.52 5.17 43.67 179.39 ➢ Mahavir Spinning Mills has reported a phenomenal jump in net profits for the quarter ending in March 2006.66 122.850.76 6.52 11.65% increase in operating profits at Rs 290. 4.076.35 Margin (%) 39.54 97. the company experienced a 61.0931.08 727.68 76.74 41.07 78.59 11.81 120.28 24.38 64.01 56.49 11. OPM jumped to 15.49 Interests 250.08 25.41 47.91 Net sales Growth (%) EBITDA Depreciation/Amortizati 101.07 crore.3 22.62 52.53 38.93 121.01 11.947.35% resulting in 32.2 Cr to Rs.25 15.81 59.23 13.61 22. ➢ The company’s sales had increased over the years except over the last year but it can be seen that though the sales are nearly same but Operating profit margin and PAT margin 1 .03.16 5.6 million compared with the corresponding quarter.38 40.66 391.45 86.76 476.42 95.82 58.58 PBT 54.57 38.16 crore.8 1. Revenues increased by a marginal 2% to Rs 1889.1 1.35 9.20 9.09 159.27 Taxes 196.07 3.94 27.16 15.03. 47.65 36.79 6 6 6 2.36% rise in profits from Rs.41 3.73 42.88 15. Sales for the quarter rose 3.07 Profit) 15.84 12.05 10. 76.

coverage 7.33 5.61 Profitability ROE (%) 20.88 EV/Operating Income 8.36 BV 166.80 6.02 9.791 2.90 468.65 0. Company has a very low P/E as compared to other majors in the industry.74 0.02 15.10 598.711 2.38 851.60 0.70 5.17 6.47 207.11 Valuation P/E 7.03 3.54 EV/Sales 1.85 0. its well above the industry average and also above most of the majors in the industry.83 P/BV 1. Ratio Analysis: Table No:24 RATIOS Mar-09 Mar-08 Basic EPS 33.86 25.09 ROCE (%) 15.80 9.40 0.97 3. 1 .70 Dividend Payout 11.42 Mar-05 9.54 ➢ The premium is a function of the company’s efforts to move away from the commodity business of yarn and its vertical integration into fabric but it also recognizes that earnings CAGR of 15% is below that for other top picks in the sector.35 Findings and Recommendations: Mar-07 23.94 Other Int.27 Mar-06 16.51 176.83 5.98 31. lower cotton prices and a sharp drop in the interest cost have resulted in profits.90 1.had increased substantially increased over last year.35 3.62 5.41 15.91 14.644 1.38 12.94 1.03 2.36 0.95 19.04 3.773 Leverage Debt/Equity 1.53 0. Also company is trying to improve its margins over the years.87 163.36 194.02 1430. ➢ Looking at our primary valuation technique.46 12.82 EV 2371.96 42.22 5. But looking at EPS and ROE of the company. ➢ As company being one of the largest players in cotton yarn.97 14.255 0.

an EV/Operating margin will improve a lot.17. further looking at its expansion plans and also looking at the figures generated.10 Stock Exchange BSE Raymond (formerly Raymond Woolen Mills) is the flagship of the Vijaypat Singhania Group was incorporated in 1925. the stock is trading at 21% discount to the sector average.0 52 Week Low 289.8 Raymond Ltd: Market data: Table No: 25 Current Market Price 358. ➢ Looking at ratios of the company.10 Dividend Yield % 1. Engineering Files & Tools. ➢ With future expansion largely driven by fabric and new capacities going on-stream in phases.50 Market Capitalisation (Rs in Crs) 2202.3 Free Float 65. Prophylactics and Toiletries. ➢ On a FY09 EV/Operating income of 8. Readymade Garments.03 52 Week High 625.➢ By looking at the above ratios it can be said that market has not given the proper valuation to the stock because though it has good EPS and |ROE but then also its market price is low. The company has low EV/Operating margin ratio but given the company’s initiatives to improve its product mix to achieve superior margins. its not quite clear about the company’s future stock performance and so I would like to be NEUTRAL on this stock and would advice investors to have patience and look at company’s performance in future and then make a judgment. 1400 crore plus conglomerate having businesses in Textiles.39 Dividend Payout 25. the stock to trade at premium to the industry as the growth theme plays out.The Raymond Group is a Rs. 6. The company has a 60% share in the worsted 1 Business Profile: .

The Parx range of casual wear was targeted at the mid-segment customer. Perceived as pioneer and innovator. Over the years. Raymond is present in three segments of the ready to wear range. Canada. The company has a distribution network of 260 showrooms across 110 cities. No:15 Revenue Composition: ➢ The company generates the large revenue from textile and related sectors and Engineering segment comprise only 10-12%.74 Cr with a YOY growth of 16%. the business wear range of ready-mades in 1986 and today it is one of largest selling brand of men’s wear. Raymond Textiles is the world's third largest integrated manufacturer. with a brand in each. Raymond Textile has been responsible for raising the standard of the Indian textiles industry. To manufacture cosmetics and toiletries.textile industry. of which around 20 are company owned and the rest are franchises. This segment is there to bring in the volumes. 2 . this segment contributes approximately 50% to the company’s turnover. The company exports it’s suiting to more than 50 countries including USA. largely for exports. Raymond manufactures denim and jeans in India in collaboration with Calitri Denim Industries of Italy.1324. which has resulted in path-breaking new products. Raymond established Helen Curtis in 1964 in technical collaboration with Helene Curtis Inc of USA With a capacity of 25 million meters of wool & wool-blended fabrics. The company introduced Park Avenue. Europe. Net Revenue was Rs. Raymond Textile has developed strong in-house skills for research & development. In the high-end premium segment the company introduced the aggressively priced Manzoni range. Fig. Japan and the Middle East.

Belgium for combining the denim business of the company and UCO N. ➢ Sales of the textile division contributed 67% to the overall sales and major part of the profitability of the company.44 Cr.868.V. With 54% of allocable capital employed for the year. It will provide the Company with strategic. ➢ Raymond has announced the setting up of a Design Studio in Italy by setting JV with Gruppo Zambaiti. Recent Developments and Future Plans: ➢ Raymond has entered into definitive agreements with UCO N. cutting edge design capabilities for all its textile and apparel businesses. provide visibility to its products globally. The profitability of this division increased by 32% to Rs 56. and its subsidiaries in a proposed 50:50 joint venture company to be located in India. ➢ Raymond has plans to expand its capacity for worsted suiting at Vapi in Gujarat by 3 million meters per annum making the company’s total capacity for worsted suiting of 31 million meters per annum.03.➢ As it seems the percentage of textile segment has reduced in the revenue composition but the revenue of textile division stood at Rs. ➢ The growth in the revenue of Denim Division increased by 32%. Financial Results: Table No: 26 Particulars Twelve Months Ended (Rs in Crores) 4th Qtr Ended Mar-09 Mar-08 Mar-07 Mar-06 Mar-05 31. With an increase of 13% in revenue from textile division. This would be an integrated facility starting from spinning up to finishing of fabric.08 1 . Engineering by 9% and Brands by 11%..09 31. textile division's contribution in the PBIDT figure is 82%. The design studio will provide access to international design talent.V..03. The total cost of expansion is estimated at Rs 197 crore.76 crore.

65 14.83 91.2 91.81 9. Bottomline for the quarter declined by 22% mainly due to fall in OPM.94 38.33 54.76 76.65 crore ➢ As can be seen the performance of the company over the years there has been increase in the sales of the company substantially but the Operating profit margins and Net profit margin has been fluctuating due to fluctuating raw material prices.15 384.61 165.07 38. ➢ The company has shown the good figures for the year ending 2009.36 72.61 34.12 1. The main drivers for the growth were Textile and Denim segment.4 5 15.37 44.05 -6.5 2 972.25 322.96 5.30 49.46 218.37 41.42 19.35 16. which resulted in 65% jump in the operating profits at Rs 198.28 163.011.84 17.38 209.05 18.43 26.82 6.98 229. However the yearly performance remained robust.11 171.07 58.7 6 6.42 2.60 19.78 ➢ For the quarter ended March 2009. increase in interest and tax provision.09 186.06 55. The company has shown nearly 16% growth in the topline where as nearly 60% growth in bottomline.04 52.09 60.68 271.29 9.18 63.10 1. the company reported a 19% increase in sales.340.43 9.77 120.63 41.76 272.39 28.3% to 15%.84 12.82 35.158.95 4.49 131.71 198.38 44.08 122. However the OPM decreased to 13%.41 110.42 9.06 19.21 23.12 12.089. taxes and wages.79 12.43 11.9 8 7.41 10.95 40.45 69.8 63. Ratio Analysis: Table No: 27 RATIOS Mar-09 Mar-08 Mar-07 Mar-06 Mar-05 1 .31 184. The operating margins saw an increase from 10.79 83.Net sales Growth (%) EBITDA Depreciation/ Amortization EBIT (Operating Profit) Margin (%) Interests PBT Taxes PAT Margin (%) 1.63 1.72 132.58 14.64 8.

35 12.71 13. • Looking at the stocks performance for the year.63 7.54 2. targeted 4-12 years age group that at present clocks 25 percent growth rate.92 P/CEPS 9. P/E of the company currently trades at 17.34 11.45 9.48 1016.63 Dividend Payout 25.57 13.85 2543. Except this.00 1.69 1. • Looking at the various ratios.92 CEPS 37.19 1.48 35.93 6.21 13.43 1. Indian textile industry is in one of the most buoyant periods.52 4.15 Profitability ROE (%) 10.96 21.65 Other Int. it is expected for the stock to trade at a premium to the industry.07 4.06 5.61 14.31 P/BV 10.60 179.73 8.01 3.00 9.22 145.65 which is less as compared to others in the industry and its part of development plans.97 1. it can be seen that stock is performing over the market that means that returns of the stock are above the market.67 155.43 30.83 1553.02 Company is expanding its fleet across different categories.03 11.82 11.43 1.96 7.81 2. 1 .63 31.12 9.28 ROCE (%) 10.85 1085.03 4.52 27. it is seen that all the ratios are on or above the industry average. Company entered into the branded kids wear market by launching Zapp.Basic EPS 19.33 6.59 2.57 170.99 33.18 25. coverage 5.13 Leverage Debt/Equity 1. Company has a Debt/Equity ratio of 1.12 1.19 EV/Operating 14.86 EV 2860.15 Valuation P/E 17.03 3.58 11.07 25.92 which gives a good signs. • With its premium brand positioning allowing some pricing power and the expectation of rapid earnings growth.31 where as company also have good P/BV of 10.10 Findings and Recommendations: • 12.18 31.37 6.50 4.90 30.52 BV 193.92 4.46 5.40 income EV/Sales 2.

• From the analysis of various ratios and looking at the fundamentals of the company and industry it can be recommended to BUY the shares as company is well doing.Kumars Nationwide Ltd.• The capacity additions in textile and denim business completed in FY09 and the partnerships forged with leading international players will contribute significantly to the Company’s business in the coming years. 6.9 S.: Market data: Table No: 28 Business Profile: 1 .

Kumar’s has tied up with the Reid & Taylor (International) Limited.Kumars is a 4-decade-old business group operating in the textile segment promoted by Mr. 2 . The company has recently formed 4 Special Business Units (SBUs). In Oct.wool.Current Price Market 59. distribution and brand building of their various textile end products. it came out with a public issue to part-finance the setting up of the latest shuttle less weaving equipment and yarn texturising/twisting units at Dewas.33 71. The brand has proved out to be a great success for the company.95 34. S. The company holds the distinction of being the only integrated textiles player in India to have a presence across all fibre categories and across all price points. polyester blends and cotton. Scotland to produce & market premium suiting in India.’93. The Company’s Capitalisation (Rs in Crs) Free Float% 52 Week High 52 Week Low Dividend Yield % Dividend Payout Stock Exchange name has been changed to S. Kumar’s Nationwide Limited to signify the company’s focus on marketing. SKNL was formed in 1990 when the group consolidated all its business holdings under one entity.Shambhukumar Kasliwal. corresponding to the 4 segments so as to enable independent functioning and decision-making at the unit level. SKNL is the only Indian company.Kumars (Economy) ➢ Home Textiles (1996) ➢ Worsted Fabric (1999) – Reid & Taylor (Premium) ➢ Ready-to-wear (2001) – Tamariind (Mid price). The line of business of the company is: ➢ Consumer Textiles – S. to have a presence across all fibre categories . Reid & Taylor (Premium) Due to this diversification. but over the years it has widened its product portfolio.00 BSE S.00 0.45 Market 967.31 47. It was initially only known as a consumer textiles company.55 0.

the expenditure will be for the following projects: ○ Expansion of Reid & Taylor Mfg. ➢ Export opportunity in the post Multi Fibre Agreement (MFA) era: Increasing exports is the clear focus in the post MFA era with exports to reach 32% of sales by FY10. Having already established its presence in the premium segment through Reid & Taylor. ➢ Creating presence across the branded apparel business: S Kumars plans to leverage off its brands to take advantage of growth in branded apparels. it is looking to tie up with other brands in a bid to extend its presence across the branded garment business ➢ Strong distribution network an asset: S Kumars has a wide distribution network of 300 wholesale dealers and 30.Rs 90 crore ○ Ready-to-wear garments (Total Wardrobe Solutions) .000 retail outlets for the S Kumars brand. and in the economy segment with S Kumars and World Player.Rs 50 crore 2 . Home textiles. Worsted Suitings and HVFC Shirtings are expected to be the future export drivers for the company Recent development &Future Plans: S. and 16 exclusive outlets and 8.Fig No:16 Key concerns: ➢ Focus on value addition in consumer textiles: Keen competition and stagnating volumes in the uniform business have forced S Kumars to focus on value addition. which was just about 4% of sales in FY05. Capacity . middle-class segment with Tamarind.Kumars Nationwide Ltd plans to invest around Rs 400 crore over the next four years for expansion cum diversification. It is increasing presence in top-dyed fabrics that provide higher realizations and margins. Broadly.000 retail outlets for the Reid & Taylor brand.

○ Home Textiles - Rs 80 crore ○ High Value Fine Cotton Shirting - Rs 130 crore ○ Working Capital Margin - Rs 50 crore . Financial Results: Table No: 29 Particulars Twelve Months Ended Mar- Mar- Mar- Mar09 08 07 06 889.73 344.53 615.16 620.85 158.24 -43.99 -0.92 -23.07 198.63 32.89 40.04 39.24 20.89 58.6 12 3.48 2.85 9.15 0 9.15 2.66 -18.56 -3.02 2.59 -21.15 -2 -19.15 -3.11 4th Qtr Ended Mar- 31.03.0 31.03.0 05 9 8 807.05 247.89 196.20 225.57 26.35 66.22 51.23 23.41 6.24 17.17 8.75 1.26 14.97 0.00 14.97 7.62

Net sales Growth (%) EBITDA Depreciation/ 40.92 Amortization EBIT (Operating Profit) 157.71 Margin (%) 17.73 Interests 47.44 PBT 110.27 Taxes 10.49 PAT 99.78 Margin (%) 11.21

58.79 48.88 10.22 -19.55 17.34 41.01 -3.15 2.15 16.54 115.86 135.49 12.82 -135.41 -118.15 25.35 -0.04 -10.74 2.59 -135.37 -107.41 22.76 -21.80 -13.31 9.81

➢ The company has came out with the outstanding figures for the year ended Mar-06. Company has shown a topline growth of 158.24% and bottomline growth of nearly 1000% over the previous year. The company has also increased the Operating profit margin and Net profit margin tremendously. ➢ As can be seen from financials over the year, The Company’s OPM and net profit margin were very low and negative for some years but company has increased it this year and a strong growth is expected from the expansions to be completed. Reason for the low performance previously can be thought of as high interest payments and depreciation. Ratio Analysis: Table No: 30 1

RATIOS Basic EPS CEPS BV EV Profitability ROE (%) ROCE (%) Valuation P/E P/BV P/CEPS EV/Operating income EV/Sales Leverage Ratio Debt/ Equity Other Int. coverage

Mar 09 Mar 08 6.33 11.56 8.35 2056.32 75.73 13.13 9.40 7.12 5.14 10.35 2.31 9.12 3.32 0.58 2.09 -0.98 1507.50 -59.07 1.05 35.68 -21.08 9.93 45.83 4.38 -73.86 4.21

Mar 07 -1.21 13.92 15.21 1227.45 -7.98 11.73 -5.77 0.46 2.63 30.66 2.00 5.65 61.38

Mar 06 Mar 05 -8.58 10.76 16.62 1204.26 -51.66 8.02 -0.53 0.27 1.82 30.69 1.94 5.28 0.96 -6.81 8.96 25.37 1028.48 -26.84 6.11 -0.69 0.19 0.96 15.53 1.27 3.34 0.60

Findings and Recommendations: • S Kumars Nationwide is one of the turnaround stories in the Textile space with strong brand and diversified product portfolio. The company is well poised to leverage the opportunity in the Textile Sector both in the domestic space and also the exports markets. • Successful implementation of its growth strategy with focus on 'Home Textiles' & 'Total Wardrobe Solutions' would drive the future profitability in coming years, which will in turn trigger a re-rating in the stock valuation. • I believe P/E is not a suitable valuation tool to value this company because the company has just turned around so instead we can keep EV/Sales in view of its recent thrust on

1

retailing and branding. Retailers in general have been trading between 2.0 and 2.5 EV/Sales. The stock may have more than discounted the turnaround and prospect of strong growth with valuations at 2.3 EV/Sales for FY09. • Company has a very high Debt/Equity ratio which started from 90’s as company financed most of its expansion plans through borrowings and it rose year by year and also company was in burden of paying high interest. Finally debt restructuring plan has been sanctioned now and company will reduce its burden soon. • Though company has high debt repaying program and also expansion plans which are likely to generate huge cashflows in the future but looking at the risk attach it is recommended to investors to SELL the shares right now and wait for a while to see how company carries out its various operations in future and make decision depending on it.

6.10 Welspun India Ltd:

Market data: Table No: 31

Business Profile:

2

Current Market Price 70.35 Market Capitalization 1107.79 (Rs in Crs) Free Float 65.99 52 Week High 145.00 52 Week Low 62.60 Dividend Yield % 0.00 Dividend Payout 0.00 Stock Exchange BSE

Welspun India, the flagship company of Welspun group was incorporated in the year 1985. Welspun India is one of India’s largest home textile companies,the largest producer of Terry Towel in Asia and the fifth largest terry towel player in the world The company is well positioned to exploit the huge opportunitie in the home textiles arena

in the post quota scenario, as global manufacturing capacities in the developed world are closing down. Welspun has timed its capex extremely well and has a wide product mix and global capacities. It is highly regarded by global buyers for its product development and innovation skills. The Company transferred the Spinning division with its assets and liabilities to Welspun Cotton Yarn Ltd. WIL continues to manufacture terry towels, but the yarn spinning is carried out by the new company - Welspun Cotton Yarn Ltd (WCYL).The company has started direct marketing by way of 100% subsidiary in USA and has made grounds for tie-ups with the best in the market for floating the products in the market.

Fig. No: 17 Recent Development and Future Plans: ➢ Welspun group has acquired an 85% interest in Christy (CHT Holdings Ltd), U.K’s Number One Towel Brand for Rs. 136.2 Cr, which will provide the company to have access to UK and European Market. ➢ After completing the first phase of investment of Rs 600 crore in December in bed liner products, now the company will soon start the second phase of investment estimated at Rs 650 crore in the Kutch unit of gujrat. ➢ Board of directors have decided in-principle to transfer its entire retail business in India to a subsidiary company, looking at the potential market in India 2

6 Profit) 15.74 Taxes 41.5 per cent. Welspun managed to reduce raw material costs as a percentage of sales on y-o-y basis to 34.70 10.03 8. interest and depreciation are likely to remain high going forward.25 17.32 21.58 8.29 25.39 14.2 116.03 83.64 205.49 4.45 19.09 147.3 459. As a result.66 243.52 25.41 Margin (%) 34.62 40. Net sales have been increased substantially and the margins have also been increased just left to this year.93 32.89 Net sales Growth (%) EBITDA Depreciation/ 48.75 22.11 %.79 per cent to Rs 633.09 31.03.Financial Results: Table No: 32 Particulars Twelve Months Ended Mar-09 Mar-08 Mar-07 633.84 ( Rs.72 18.52 14.08 278.20 15.95 63.7 68.60 14.6 Amortization EBIT (Operating 97.14 10. but its operating profit growth was stunted at 9.01 68. ➢ Other expenditure for the year also increased by 72 per cent on higher power costs and new capacities coming onstream.82 60.88 41.18 48.23 2.11 8.87 55.05 38.54 14.89 26.76 11. Welspun is increasing its capacity and as a result.77 6. ➢ As seen from the financials over the years.28 PBT 21. To its credit.83 17.31 Interests 63. ➢ Ratio Analysis: Table No: 32 RATIOS Basic Mar-09 Mar-08 Mar-07 Mar-06 Mar-05 1 .71 14.47 4.13 17.3 crore.63 22. Welspun India posted a healthy top line growth of 37.03. operating profit margin fell to 15.64 14.12 6.37 38.89 146.6 26.70 5.61 30.34 23.9 20.54 PAT 6.26 44.74 12.56 Margin (%) ➢ In FY09.79 35.65 37.29 24.58 89. In Crores) 4th Qtr Ended Mar-06 Mar-05 31.22 7.46 28.04 12.17 per cent in FY09.95 10.6 339.84 5.17 6.

69 1.98 16.60 575.84 5.31 41.13 9.52 which is well at an average of the industry.52 0. coverage 5.11 12.95 1.84 3.64 64.05 7.69 1. • P/E being the primary valuation tool as we can see that company’s stock is currently trading at P/E of 13.93 1.99 50.94 4.90 1.15 1.55 1.03 75.62 9.57 12.20 13.38 2.32 1.15 13.EPS CEPS BV EV Profitability ROE (%) ROCE (%) Valuation P/E P/BV P/CEPS EV/ Operating Income EV/Sales Leverage Ratio Debt/Equity Other Int.5% which is not a good sign from the investor’s point of view. Any strategic acquisitions of a retail outlet or brand will be a further positive for the stock.06 2.52 523.00 9.73 2.66 44.23 17.79 368.54 7.78 2.93 1253. best poised to capitalize on the huge opportunity in this segment in the post-quota era.93 1. • Welspun is one of the most expensive textile stocks.6 and low RoE of 7.39 2.30 20.91 7.72 5.52.00 15.66 5.10 14.62 3.34 Findings and Recommendations: • The company is 3-4 years ahead of its competitors in the home textile space and hence.95 2.12 37.37 1307. While looking at low 1 .34 12.10 6.49 10.76 7.89 15.35 1.59 8.74 1. with a high debt-equity ratio of 2.01 13.43 14.89 14.01 2.10 6.79 0.53 2.52 9.

Comparative Analysis: 30 00 20 50 20 00 10 50 10 00 50 0 p in n in g o rt s e in m a s m o n d u m a rs 24 62 N Sales (R in C et s r. • The stock is not been rated upto the mark because of the risk perceived by investors due to its frequent dilution.3 1 1 . No: 18 2 M a h a S .4 89 6 1 7 . global scale capacities in terry towels and a business model getting more dynamic with the company’s entry into high value add segments.) 19 52 1 13 1 0 . 7. it seems valuations appreciating and expect the stock to trade at premium as growth plays out.ROE in the industry it can be judged that company is not been able to use its resources well.K vi r R W e ls p u n .0 84 9 8 .7 63 3 3 . • With an expected earnings CAGR of 43% over FY09-10E being the highest in the sector.7 48 6 0 In d IR IL A lo k in d g M ill E xp D y R a S a y b a y o ka ld a s In d o A rv B o m G Fig.4 89 3 8 .9 1 8 .1 80 1 40 5 3 .

6 M a h a R a m a vi r In d o 60.6 127.67 S p in n in g m a p in n in g R a y S .88 P /E Fig No: 19 1 4 .7 1 1 4.4 E xp o rt s o ka ld a s o ka ld a s g o rt s R a S 61.78 D o ka y e ld in a g s E xp o rt s In d M o a R h a a m vi a r S p in n in g R a y m o n d S .9 Fig No:21 7 3 .54 1 2 3.4 G b a y b a y 9 1 .8 1 2.34 D b /E u e t q ity P T(C A r.4 W e ls p u n u m a rs W e ls p 99.9 A lo k A rv B o m M i ll s B o m b a y M i ll D y In d In d A rv in d s e in E xp In d o M a h a vi r In d A lo k 8 8 .11 4 6 8 A lo k A rv B o m in d M i ll s G D y e in g G IR IL 1 6 .16 2 .K u m a rs 122.32 Fig No: 20 R a y m o n d 1 5 .5 17 6.4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 1 0 100 150 200 250 50 0 0 IR IL IR IL 2 3 1.19 3 .3 S .3 110.2 37 4 .83 1 .8 196.5 3 .29 9 2 .K m o n d 51.1 9 .6 17 1 .5 u n 41.4 in d 2 3 .) 1 1 .K u m a rs W e ls p u n 2 3 .

4 5 2 2 .2 7 .8 o rt s g e in s M i ll 6 3 .9 3 8 1 .2 u n E xp IL y R a m a A lo k in d S b a y a y o ka ld a s In d o A rv B o m Fig.5 0 2 .2 1 20 1 4 .in www. 3.8 5 9 5 8 .1 1 8 6 7 . No: 22 G M a h a S .4 9 1 3 .2 8 2 0 8 .3 49 .org ls p D E V / O p e r a t in g In c o m e 4 .0 1 1 2 .7 6 7 .3 9 1 1 0 .4 1 35 30 2 5 2 0 .7 3 80 70 60 50 40 2 0 .ibef.3 m o n d u m a rs 5 3 .4 1 30 1 7 . Financial Management – I M Pandye www.1 7 10 5 0 IRI Alo L kI Arv n ind d Bo Mi mb ls G o ay D ka lda yein sE g xp o Ind rts Ma oR ha am vir a Sp inn ing Ra ym o S.texmin.9 p in n in g 1 . 2.3 5 15 8 .5 4 10 0 IRI L Arv I nd ind Bo Mi mb ls ay Go kal Dyein das g Ex po Ind rts oR Ma ha am vir a Sp inn i ng Ra ym o S.E S P 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 IR 3 .9 9 2 3 3 . 0 9 1 3 .3 3 1 0 .7 4 7 .K nd um ar We s lsp un Fig No: 23 Bibliography: 1.K vi r R W e R O E (% ) 7 5 .5 In d 3 .nic.6 6 8 .K nd um ars We lsp un Alo k 3 0 .4 1 3 .

com www.capitaline.in www.rbi.com Business Standard Newspaper 1 . 7. 8.org.cline.myiris.com www.icicidirect. 5.4. www. 6.

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