Professional Documents
Culture Documents
Presentation on
Indo Count
Industries Ltd.
(ICIL)
By: Kalpesh Gothi
Spinning Division
Total Capacity 80,016*
spindles
Cotton Yarn Production is
14,000 tn
Internal Usage is 15-25%
India - Advantage
Chinas Challenges
Importer of cotton
Stricter environmental
compliance
Yuan appreciation
Indias Advantage
Second largest producer of
cotton
Rupee depreciation
New
product
segment
will
contribute
50% of
incremental
sales
Institutional Bedding
Hotels - Hospitals - Others
Fashion Bedding
Wide range of products
Expanding Capacity
After the company went into CDR in Aug 2008 on the back of
demand slowdown and derivative loss to the tune of ~Rs.80 cr, it
has been making sustained and continuous efforts to get out of
the CDR.
At the same time the company has been focusing on its core
competencies and growing the business in leaps and bounds
through new product development, new client acquisition and
geographical expansion.
Once out of the CDR, ICIL will be able to witness better growth
prospects along with ease of working environment.
Peer Comparison:
Financials
Fig: Revenue Trend
Financials
cont
Fig: ROANW Trend
ROACE Trend
Turnover Ratios
Financials
cont
Fig: D/E Trend
Valuation
At the expected EPS of Rs.44.4 for FY16E and Rs.57.2 for FY17E, the
stock to trades at attractive valuations with a P/E(X) of 8.97 and 6.95
for FY16E and FY17E, respectively.
Thank You
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