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SEL MANUFACTURING COMPANY LTD
Price as on 18-02-2010 : Rs. 88.85/-
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This report is meant for private circulation only.
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The views expressed in this report are that of experts and not of BgSE Financials Ltd.
Research Report
INDUSTRY PROFILE
INDUSTRY STRUCTURE & DEVELOPMENT :
India Textile Industry is one of the leading textile industries in the world. Though was predominantly
unorganized industry even a few years back, but the scenario started changing after the economic
liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to
the Indian textile industry, which has now successfully become one of the largest in the world.
India textile industry largely depends upon the textile manufacturing and export. It also plays a major
role in the economy of the country. India earns about 27% of its total foreign exchange through textile
exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production
of the country. It also contributes around 3% to the GDP of the country.
India textile industry is also the largest in the country in terms of employment generation. It not only
generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile
industry currently generates employment to more than 35 million people. It is also estimated that, the
industry will generate 12 million new jobs by the year 2010.
INDUSTRY OUTLOOK:
About 60% of Indian exports of textiles and over 70% of clothing are to USA and EU 27 markets. The
domestic players are oflate focused on enriching and broadening their product mix and are also
exploring new markets, while maintaining and increasing Indian textiles and clothing (T&C) share in
core markets through product innovation and diversification. The global and domestic Textiles sector
appears to have bottomed out after couple of years of struggle. The recovery in global demand and
accelerated growth in domestic demand is facilitating re-rating of the Indian textile sector in general
and yarn producers in particular.
HIGHLIGHTS
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The company is operating with a consolidated capacity to manufacture 4.5 million garment pieces
per annum. Its capacities in cotton and combed yarn and fabric knitting are at approximately 29,856
spindles (6,516 tons yarns per annum) and 1,950 tons of fabric knitting per annum respectively.
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The company has achieved Gross Sales to the tune of Rs. 58994.69 lacs in 2008-09 as compared to Rs.
35738.70 lacs in the 2007-08. The profit before tax stood at Rs. 6813.66 lacs as compared to Rs.5525.56
lacs during the previous year.
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Net profit of SEL Manufacturing Company declined 4.75% to Rs 18.23 crore in the quarter ended June 2009
as against Rs 19.14 crore during the previous quarter ended June 2008. Sales rose 3.42% to Rs 182.92 crore
in the quarter ended June 2009 as against Rs 176.87 crore during the previous quarter ended June 2008.
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Sel Manufacturing Company Limited has acquired a majority stake in SEL Textiles Pvt. Ltd., thereby making
it a subsidiary.
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SEL Manufacturing Company Ltd is setting up a Technical Textile Park in the State of Himachal Pradesh for
which concerned SPV has applied for the approvals from the Ministry of Textiles of Government of India for
sanctioning the Project under the Scheme for Integrated Textile Park (SITP).
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In 2006 it acquired 100% EOU spinning unit of Saluja Cotex Private Limited. It also acquired assets &
property of Mangla Cotex Limited through bidding process from official liquidator vide order dated March
23, 2006 passed by the Hon'ble High Court of Punjab & Haryana at Chandigarh.
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The Company has also set up a Terry Towel Plant with capacity of 10 TPD of Terry Towel, which
commenced production in this (2008-09) financial year.
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The company holds 99% stake each in the partnership firm(s) namely M/s SE Exports and M/s Kudu
Industries. M/s SE Exports, the firm is engaged in the business of manufacture of value added knitted
garments having production facilities located in the tax free zone in Baddi in Himachal Pradesh.
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SEL Manufacturing Company has approved in December 2009 , the allotment of 5,600,000 global
depositary receipts (GDRs) representing 5,600,000 equity shares, par value of Rs 10 each at an issue price
of $1.52 per GDR to the persons resident outside India.
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MARKET DATA SHARE HOLDING PATTERN OF
Industry TEXTILES-Spinning/cotton/ SEL MANUFACTURING
blended yarn-ring spg
COMPANY LTD
Market Cap (as on 18/02/2010) 271.72
52 week high/low 110.10/38.10
Foreign
Custodians(Agai
T. T. Q.BSE/NSE (as on 18/02/2010) 43375/ 83375 0%
nst Depository
Receipts)
BSE code & Group 532886/B Indian
23%
NSE code SELMCL 37%
3 JINDAL STEEL & POWER LTD 9-Mar-09 163 2983 21-Oct-09 778 6621 122 377
4 PANTALOON
RETAIL (INDIA) LTD 5-Mar-09 116 3012 21-Jan-10 455 6803 126 292
7 KOTAK MAHINDRA
BANK LTD 2-Feb-09 275 3319 20-Jan-10 878 6973 110 219
8 STATE TRADING
CORPORATION OF INDIA LTD 21-Apr-09 185 4030 19-Jan-10 561.7 6982 73 204
10 STERLITE INDUSTRIES
(INDIA) LTD 23-Mar-09 320 3402 6-Jan-10 928 6994 106 190
STATEMENT OF CAUTION: INVESTORS ARE ADVISED TO EXERCISE CAUTION AND INVEST IN PHASED MANNER.
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TECHNICAL ANALYSIS
SEL MANUFACTURING LTD:-
SEL Manufacturing co ltd share price after hitting a high of Rs 757 in Aug 08 had a step fall to Rs 38 in March 09,
since then made a high of Rs 110 after that is in a consolidation mode. Long term trend (200 DMA) & Medium
term trend (50 DMA) both are near Rs 86. Support is at Rs 75. First target Rs 110 if it breaks this next Rs 196, both
averages are presently sideway moving.
NIFTY:-
Nifty opened the week at 4827 points & traded during the week between 4783 - 4929 before closing the week
at 4844 with a small net gain of 17 points, Nifty variation during the week is 146 points i.e. 3.05%. Nifty stayed
below first resistance 4941 & above first support 4685.
Index Nifty
Nifty Open 4827
Traded between 4783 to 4929
Variation 146 points i.e. 3.05 %
Nifty support First is 4550 points next will be 4685
Resistance 4941 points
RECOMMENDATION:
Buy Bank of Baroda around 580.00 with a Stop Loss at close below 545 for a target of 655 - 755.
Address………………………………………………………...........................………………………………..……………………………
Ptd. at Shalini Graphics Phone : 26764385
………………………………......................................................................................................………City………………………........
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