Scripscan:Siyaram Silk Mills Ltd
BSE Code:503811
Cmp:303
Target:480
Percentage return:60%
Duration:9-12 months
Story:Siyaram Silk Mills is a part of Siyaram Poddar group. This is a vertically integrated textile company. This company has got in-house facilities for spinning, dyeing, weaving, finishing and also garmenting. The brand Siyaram is available at over 40,000 retail outlets all across the country. Besides that the company is also opening its own exclusive stores where it will sell Siyaram besides other brands, which the company has. Beside Siyaram the company also has Oxemberg and J Hamstead as the other brands under which their garments are sold.Increasing brand consciousness coupled with rising per capita income has stimulated demand for its various products. Vast distribution network facilitates further penetration to have pan-India presence giving it a competitive edge. Increasing capacities coupled with higher utilization is likely to further drive the volume growth.In a highly competitive market the company has successfully differentiated itself amidst both organised and unorganised players through effective branding of its products.The company expects robust demand growth to be aided by higher utilisation and increased capacities across all segments of the company.Siyaram"s vast distribution network of 1,500 dealers and 500 provides it with a competitive advantage. A network this extensive helps it make early inroads with new product lines and styles before competition can bring similar products to the market.At CMP of Rs303, the stock is trading at a very attractive valuation of 5.2 times its fy12 earnings of 58.The company also has got a 20 year track record of uninterrupted dividends.Given its strong brand portfolio, vast distribution network, fairly healthy balance sheet and strong dividend track record,the stock should give 60% return in the next 3-4 quarters.A strong buy altogether.
Thursday, January 27, 2011
Subscribe to:
Post Comments (Atom)
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

No comments:
Post a Comment