GARDEN SILK MILLS
NSE: GARDENSILK BSE : 500155 CMP: 100.45 BOOK VALUE : 128.00
PE RATIO : 4.80 EPS : 20.98 INDUSTRY PE : 7.90
PE RATIO : 4.80 EPS : 20.98 INDUSTRY PE : 7.90
Garden Silk Mills incorporated in 1979 is among the leading fabric engineer, design maker and a polyester yarn manufacturer in India.
Company’s manufacturing facilities are situated at Vareli and Jolwa in Surat district in Gujarat, which is the largest polyester market in India.
Garden Silk Mills manufacturing facilities has received ISO 9001:2000 certified by BVQI for its quality management.
The company has large and talented pool of designers that are engaged in developing new fabrics, qualities and 2,000 new print ideas each year. Company is equipped with CAD- CAM technologies.
Apparel division of Garden Silk Mills manufactures and markets Vareli Business shirts and ready to wear ladies garments. These apparels are sold across the country.
Garden has marketing network encompasses 68 dealers, 18 company owned depots and 293 retail outlets in over 65 cities in India.
Globally, GSML has product presence in countries that includes U.K., France, Spain, Portugal, Greece, Middle East and Gulf countries, the U.S.A., Australia, Singapore, Thailand, Hong Kong, Mauritius, South Africa and Brazil.
Products
Company manufactures PET Chips, polyester yarn and partially oriented yarn. It also manufactures prepared polyester filament yarn – draw warped, draw twisted, draw wound and draw texturised
Under Fabrics, company manufactures fine filament and micro filament polyester fabrics - georgette's, chiffon's, failles, jacquards - both dyed and printed – mainly used Polyester Sarees and Dress Material.
It has a production capacity of 42 Lac meters per month of greige fabric.
Future Prospects
Garden Silk Mills is expanding its draw twisting, draw warping and polyester spinning capacities. The company is planning to increase the capacity by 300 TMD for the production of POY (partially oriented yarn) and FDY (fully drawn yarn) in coming future.
Company’s manufacturing facilities are situated at Vareli and Jolwa in Surat district in Gujarat, which is the largest polyester market in India.
Garden Silk Mills manufacturing facilities has received ISO 9001:2000 certified by BVQI for its quality management.
The company has large and talented pool of designers that are engaged in developing new fabrics, qualities and 2,000 new print ideas each year. Company is equipped with CAD- CAM technologies.
Apparel division of Garden Silk Mills manufactures and markets Vareli Business shirts and ready to wear ladies garments. These apparels are sold across the country.
Garden has marketing network encompasses 68 dealers, 18 company owned depots and 293 retail outlets in over 65 cities in India.
Globally, GSML has product presence in countries that includes U.K., France, Spain, Portugal, Greece, Middle East and Gulf countries, the U.S.A., Australia, Singapore, Thailand, Hong Kong, Mauritius, South Africa and Brazil.
Products
Company manufactures PET Chips, polyester yarn and partially oriented yarn. It also manufactures prepared polyester filament yarn – draw warped, draw twisted, draw wound and draw texturised
Under Fabrics, company manufactures fine filament and micro filament polyester fabrics - georgette's, chiffon's, failles, jacquards - both dyed and printed – mainly used Polyester Sarees and Dress Material.
It has a production capacity of 42 Lac meters per month of greige fabric.
Future Prospects
Garden Silk Mills is expanding its draw twisting, draw warping and polyester spinning capacities. The company is planning to increase the capacity by 300 TMD for the production of POY (partially oriented yarn) and FDY (fully drawn yarn) in coming future.
Garden Silk Mills Limited (GSML) has posted a 17.5% yoy rise in Q4FY11 profits to Rs 27.3 crore.
Net Sales increased by 28.0% year on year to Rs 879.8 crore. Decline in other expenses & stable
spreads helped the company post 30 bps increase in EBITDA margins to 10.2%. However, higher
interest and tax outgo led to 30bps decline in the net profit margins to 3.1%.
For the full year, GSML posted a good 35.4% rise in the net sales to Rs 3404.1 crore as against Rs
2514.9 crore reported in the previous corresponding year. Higher raw material cost pulled down
the EBITDA margins by 90 bps to 8.3%. Despite decline in the EBITDA margins, the net profit
margins remained stable at 2.5%.
At the CMP of Rs 100.2, the stock trades at 4.7x & 3.0x for FY11 and FY12 earnings. Enhanced
capacities and stable spreads would continue to drive growth for the company, one can BUY on the stock with a target price of Rs 213.00
Net Sales increased by 28.0% year on year to Rs 879.8 crore. Decline in other expenses & stable
spreads helped the company post 30 bps increase in EBITDA margins to 10.2%. However, higher
interest and tax outgo led to 30bps decline in the net profit margins to 3.1%.
For the full year, GSML posted a good 35.4% rise in the net sales to Rs 3404.1 crore as against Rs
2514.9 crore reported in the previous corresponding year. Higher raw material cost pulled down
the EBITDA margins by 90 bps to 8.3%. Despite decline in the EBITDA margins, the net profit
margins remained stable at 2.5%.
At the CMP of Rs 100.2, the stock trades at 4.7x & 3.0x for FY11 and FY12 earnings. Enhanced
capacities and stable spreads would continue to drive growth for the company, one can BUY on the stock with a target price of Rs 213.00
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