Textile Valuepick ..... Damodar Industries Ltd

 Today I am expressing my view on textile company safe and compounding one....Damodar Industries Ltd.

Company

The company was incorporated on 11th December 1987 as a private ltd. company to manufacture synthetic blended yarns. The company was converted into public limited company on 20th March 1992. Since 1992 the company has expanded its production capacity and is now one of the largest producers of value added yarns in India having a group turnover of $ 100 Million from 6 manufacturing facilities.

Since beginning Damodar's philosophy was to provide a novelty product at an affordable price. Passion for yarn has made the company a trend setter in the industry. Damodar has introduced many new products with different blends and new looks. At Damodar value addition does not end at the spinning stage. The company has installed post spinning machines like TFO, Fancy Doubling, Hollow Doubling, Yarn Dyeing, Multi Colour Space Dyeing .

At Damodar Group Research & Development is the most important and on-going process. We have a state of the art R & D Department wherein our in house designers introduce a new product by initially making samples on bit looms and then the approved yarns are tried and tested on modernized looms. These samples are dyed and finished in our lab on sample dyeing and finishing machines.

Products

• Air Texturising
• Cotton yarns
• Fancy texturising
• Linen blends
• Special blends
• Synthetic yarns
• Yarn dyeing

Major Customers of Damodar

• Grasim Industries Ltd.
• Arvind Mills Ltd.
• Siyaram Silk Mills Ltd.
• Reliance Industries Ltd.
• Garden Silk Mills Ltd.
• Dicitex Decor Ltd.

Outlook

Promoter hold 69.21% stake of company. Company is steady dividend payer with constant growth compounder over a period of time. Last nine months top lines and bottom line reported by company is 525.5 cr and 6.81 cr respectively compare to last year 620.95 cr and 10.39 cr.

Company is available at just 99 cr market cap compare to top line of 600+ cr. Only long term genuine investor can enter. CMP is 89

Disc: holding few quantity of stock

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

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”