Please refer to important disclosures at the end of this report
1
Himatsingka Seide Limited (HSL) is a home textile company, which is engaged in
spinning, weaving and finishing of textiles, and manufacturing of other textiles.
Textile firm HSL has incorporated a wholly-owned subsidiary in Europe namel
y
Himatsingka Europe Ltd, aiming to strengthen its distribution network in the
continent. The company had commenced commercial production at its expanded
sheeting unit at Hassan in state of Karnataka from Oct 03, 2016. Consequent to
the expansion, the capacity had doubled from 23 million metres per annum to
46 million metres per annum. The company has performed quite well in last fe
w
years which is been reflected in the financial performance i.e.; EBIDTA Margins
has shown an improvement from 9.37% in FY13 to 13.97% in FY16 and also the
company has been able to generate a healthy cash flow from operations. The
Q3FY17 operating performance has been satisfactory and management is no
w
focusing on sweating new capacities and bringing on stream spinning platform
by the middle of FY18. The Company has been maintaining a healthy dividend
payout of 18.15%. The company has reported a healthy profit growth of 45%
CAGR and return on equity of 14% for the last 3 years. Hence Buy.
BUY
CMP `362
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 57.2
MF / Banks / Indian Fls 12.4
FII / NRIs / OCBs 8.2
Indian Public / Others 22.2
Abs. (%) 3m 1yr 3yr
Sensex 11.7 19.9 35.7
Himatsingka Seide 24.8 86.4 524.1
.
1.0
Reuters Code HMSD.BO
5
BSE Sensex 29,586
Nifty 9,154
Face Value (
`
)
Textiles
Market Cap (
`
cr) 3,524
52 Week High / Low 385/184
Avg. Daily Volume 55,573
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Himatsingka Seide
Others | Textiles
March 17, 2017
Himatsingka Seide| Textiles
March 17, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Himatsingka Seide
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
(
-5% to -15%
)
Sell
< -15
)