The company operates in the textile industry – processing and selling fabrics. It focuses on heritage and craft fabrics and uses dyes/plain fabrics to create printed fabrics. The company has reported very modest growth in revenues and operating profits over the last five years – reporting 4cr of operating profits on revenues of 36cr in the last financial year. It employed no net debt in financing its operations and held about 9cr in liquid investments, primarily in equity mutual funds. The industry is blighted by government policies that work against domestic players such as propping up of ‘zombie’ units (to preserve employment) and export restrictions on cotton yarn and other related products. The company is forced to import fabrics due to the lack of domestic supplies, resulting in exposure to a weakening INR. Moreover, the US and Europe account for over 60% of Indian textile exports, resulting in substantial diminution in the industry’s overall ...
An Individual Investor's Perspectives On The Indian Financial Markets