Valson Industries Ltd - Hidden gems, multibagger, Good Buy in Indian stock market
Valson Industries Limited is an India-based textile company. The Company manufactures polyester texturised & twisted yarn and processes cotton, polyester and other fancy yarns in India and supplies to shirting, suitings, label, upholstery, hosiery, furnishings, and automative and ready-made garments industries. The Company dyes these yarns by using different types of dyes: disperse dyes, vat dyes, reactive dyes, FN dyes, solopheynl dyes and metal complex dyes. The Company manufactures various types of yarns, such as weft yarns, twisted yarn, micro yarn, micro twisted yarn, fulldull twisted yarn, catonic twisted yarn, airtex slub yarn, s/z yarn, fulldull texturised yarn, denim yarn, airtex & ring yarn and others.
Valson Industries Ltd
Share Price - 27.35
Listed on - NSE & BSE
Sector - Textiles - Processing
Fundamentally and technically stock is good buy for long term and investment purpose. Short term traders stay away. Use my all post/articles only for learning purpose, not for trading/investing. please follow the post only for study and do only paper work and increase your knowledge so that you can take right decision in right time about buy/sell in stock market.
Fundamental Analysis :About Company :
Valson Industries Ltd was incorporated in 1983. It is one of the leading manufacturers of polyester texturised dyed yarns and processor of cotton and other fancy yarns in India. After earning a good name and a good potential in textile filed Valson came out a public issue which wa fully subscribed under the name Valson synthetics Ltd and after that name has changed to Valson Industries Ltd in 1998.The company has acquired all the necessary equipment's for quality cotton yarn dyeing. It is also produces specialty yarns used to create popular, profidable products and provide with the experience and resources to transform ideas into profitable realities.
The company ventured into the dyeing of various qualities of yarns - 100% cotton yarns of all counts, polyester cotton yarns, polyester viscose, Air texturisted yarn for automotive industries, Polynosic, Polyester polynosic, Nylon, Cotton Nylon Yarn, Polyester wool, chenille yarn, Flex yarn, Micrp polyester yarn etc.
The Company's products are manufactured in clean environment and latest facilities. The company utilizes the most up-to-date technology for the most efficient production of the highest quality products.
For more information please visit the company's website here
Company Website Positive Factors :
- Face value is 10 and book value is 36.26 and book value is increasing
- Stock PE (6.35) is than industry PE (12.79) which is vary positive
- Stock is trading at 0.89 times it's book value
- The company has been maintaining a healthy dividend payout of 38% as well as providing a good dividend yield of 3.08%
- Reserves are increasing and total debt is decreasing year by year which is very positive sign
- Revenue from operations( Gross), Revenue from operations (Net), Total revenue, Earning per share, Net profits all are increasing which is healthy
- Interest coverage ratio is 3.37, Debt to equity is 0.29 both are positive, inventory coverage ratio is high which is good, from last 2 years debt to cash flow are positive
- Promoters are increasing their stock from last 2 quarters which is good sign
- Wonderful accumulation is going on, from last 8 days deliverable percentage - over 87, from last 5 days it is over 85 and from last 3 days it is over 81
Technical Analysis :
Technically 200 SMA is making friendly relationship with stock. Supports are @26.50, @23.60 and @20.40 and resistance are @29, @30.25, @34.30 and finally @41. Stock can perform a upside movement from current level and buy more if it will fall to @24-23.50. Lower channel support line is working a powerful support for valson. Investors should add more on dips but mind it add partly not at a time and short term traders please stay away.
PROFIT MARGIN 3.56%
OPERATING MARGIN 3.00%
REVENUE 936.33 million
REVENUE PER SHARE 122.07
GROSS PROFIT 237.00 million
KEY EXECUTIVES
CHAIRMAN, MANAGING DIRECTOR AND MEMBER OF STAKEHOLDERS RELATIONSHIP COMMITTEE
Mr. Suresh N. Mutreja
CHIEF EXEC. OFFICER
Mr. Kunal S. Mutreja
CHIEF FINANCIAL OFFICER, WHOLE TIME DIRECTOR, MEMBER OF AUDIT COMMITTEE AND MEMBER OF STAKEHOLDERS RELATIONSHIP COMMITTEE
Mr. Varun S. Mutreja
HEAD OF COMPLIANCE AND VP
Mr. Pritesh H. Shah
COMPANY SEC.
Ms. Sheetal Naik
Note : We are providing information only, Any loss/profit analyze your self and its purchase/sell on your own RISK.
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