Super Sales is in the business of of manufacturing and supplying cotton yarn, textile and CNC machines via direct marketing. The company has reported reasonable growth in revenues and operating profits over the last five years – reporting 50cr of operating profits on revenues of about 180cr in the last financial year. However, it operated with a relatively high debt load of 100cr when considering the nature of its business. The business’ fortunes are tied with the user industries. Therefore, it is exposed to the risks of cotton price spikes, labour shortage, foreign exchange risks, government policies on imports/exports/subsidies etc. It is also exposed to heavy domestic and international competition and to frequent power shortages.
An Individual Investor's Perspectives On The Indian Financial Markets