104.7% RETURN - FAIRDEAL FILAMENTS
DATE: 13/06/2017
  • COMPANY NAME : 104.7% RETURN - FAIRDEAL FILAMENTS
  • Description :

    Dear Readers,

    Today 25/02/2018, Fairdeal filaments has touched 69.1 Rs and crossed given target 65 Rs .....Gave 104.7% return within 8 months.

    You can book the full profit as target achieved.

     

    Passion pays reward

    Happy Investing!!

     

     

    ======================

    Recommendation: Buy

    Hold 1 Year

    Target: 65 Rs.

     

    CMP: 31.75 Rs.

    BSE Code: 514474

    Market Capital: 19 Cr.

    Face Value: 10

    52 Week Low / High: 25.5/41.75

    Book Value: 31

    Promoter Pledge: Nil

    Dividend (%): 12.5%

     

     

    Part – 1 Company Overview:

    • Fairdeal Filaments is group of Shahlon company.
    • Shahlon Group has a state-of-the-art manufacturing facility at Kim, Karanj & Kosamba Plant, Surat, Gujarat (India), designed in line with international standards in consultation with senior engineers.

     

    • Shahlon Group company : is a Surat based fabric manufacturer company with over 30 years of Industry exposure and Textile manufacturing experience.
    • Shahlon is the 2nd largest synthetic fabric manufacturers in India.
    • The group ventured into textile business in 1984 with just 12 traditional power looms in Surat, Gujarat (India) and steadily expanded into twisting, sizing, texturizing, weaving, industrial fabric, parachute fabric, garments, medical garments, work wears and textile park
    • In the year 1984, expanded to a cluster of fabric production units which generate supreme quality, most sought after textile products like women clothing lines, protective wears, polyester fabric, yarns, dyed fabric, printed fabric, etc.
    • Today, it is an esteemed group having turnover of over US $ 73 million and employees strength of over 1800. Besides group turnover of INR 330 crores.
    • Company is also market Reliance's synthetic yarn products of around INR 945 crores (US $ 210 million).

     

    Fairdeal Filaments Limited:

    • Is an India-based company engaged in manufacturing of synthetic textile yarn and grey fabrics.
    • The Company is engaged in manufacturing and trading of synthetic textile yarn and fabrics, both for domestic and international markets.
    • The Company's manufacturing plants are located at Mangrol and Mandvi in Surat, India.
    • The Company is engaged in manufacture of texturized, twisted and sized yarn and weaving on water-jet looms.

     

    Certificate:

     

    Products:

     

    Fairdeal Filament Shareholding Pattern:

     

    Fairdeal Share holding Pattern

    Description

    Percent of Share (%)

    Promoters

    56.38

    Public

    43.62

    Total

    100

     

     

    Focus on - Financial Results March 2017:

     

    Fairdeal Filaments

     

    Quarter Ended

    Year Ended

    Particulars

    31.03.2017

    31.03.2016

    31.03.2017

    31.03.2016

    Revenue from Operations

    5341.34

    4228.52

    20321.97

    19114.74

    Other Income

    41.74

    36.79

    124.21

    192.82

    Total Revenue

    5383.08

    4265.30

    20446.17

    19307.56

    Profit After Finance cost

    52.51

    56.75

    188.25

    241.43

    PAT

    65.85

    36.05

    176.02

    170.83

    EPS

    1.09

    0.6

    2.91

    2.82

     

     

     

    Investment Rational:

    1. 2nd largest synthetic fabric manufacturers in India
    2. Fairdeal Filament is trading near Book value and below Net sale (319 Rs) of the 2016-2017 year.
    3. Company is paying regular dividend.
    4. Fairdeal Filament PAT jumped to 176.02 Cr compare to previous year 170.83.
    5. Company had got rewards by certificate due to his quality products
    6. Will be benefited due to grooming of textile business in India.
    7. Last 5 Year CAGR (Compounding annual growth rate) Sales Growth rate is 8%.

    Recommendation:

    • Stock CMP is 31 Rs. and stock is trading at P/E 11 & TTM EPS 2.19, hence I am suspecting stock may touch rs.65 within a 1 years’ time horizon.

     

    Please note:

    • Note: The articles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

      Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

      Disclosure: It is safe to assume that I might have the discussed companies in my portfolio and hence my point of view can be biased. Readers should consult registered consultants before making any investments.
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