GINNI FILAMENTS- QUICK BUCKS!

About:-

Ginni Filaments Ltd was incorporated on July 28, 1982 as a public limited company. The company was established with the objective of manufacturing cotton yarns. In September 1982, they obtained certificate of commencement of business.

                                                                            

Located in Tehsil Chatta, Distt. Mathura, Uttar Pradesh, GFL has consistently grown from one strength to another. Installed capacity today stands at 60336 spindles with a capacity of 1000 tonnes per month.

In January 1998, GFL embarked upon an ambitious expansion project by entering the arena for Open End Yarn. GFL has 1680 rotors with a capacity to produce 600 tonnes per month of open end yarn in the count range of Ne 6 to 20. Products have been well accepted by buyers around the world.

The company has also graduated into knitted fabrics and installed 26 knitting machines from M/s. Terrot and Mayer to produce Single Jersey, Interlock, Rib Terry and Lycra fabrics. Since April 2005, GFL has expanded into processed knitted fabrics. The complete machinery have been imported from Thies & Santex. Ginni has started working with some leading European brands and other global brands like Benetton, C & A, Allen Solly, Van Heusen, J C Penny etc. The company obtained the ISO 9002 certification as early as 1996 and also got the recognised as Trading house by the Govt. Of India.

In order to get fully vertically integrated and be present from fibre to fashion, Ginni Filaments Limited has entered garment business with it's first unit in Noida in Sept. 2006, with a capacity of 2,50,000 pcs per month. The capacity would be increased to one million pcs per month in a phased manner.

The plant for spunlace non woven fabrics with an installed capacity of 12,000 MT/p.a. which is the first of its kind in India commenced production in March, 2007 in Panoli Industrial Estate, Gujarat.

Products/ Business Divisions:-

The company is engaged in the manufacture of textiles, yarn, fabric, non-woven fabrics and garments. They operate in two business segments, namely textiles and others. The other segments comprises of consumer products, which include wipes made of spunlace fabric, which are used in personal hygiene, healthcare.

The company’s products include cotton yarn, non-woven fabrics, knitted fabrics and knitted garment. The company manufacturing units are located at Chhata, Noida and Haridwar. They have state-of-the-art spunlace non-woven fabric manufacturing facility at Panoli in Gujarat. The company’s consumer products include wet wipes, medical disposables, wound care, home care/ industrial wiping and private labeling.

1)    Yarn- Ginni Filaments is one of the leading integrated manufacturers of                  cotton yarn, processed knit fabrics and knit garments in India. The                company also produces spunlace nonwoven fabrics which are used                in personal hygiene, healthcare and other technical textiles.                            Branded products under Ginni brand are distributed all over India.

      Fabric -Single Jersey, Single Jersey with Lycra , Rib, Rib with             Lycra, Interlock, Pique, Pique with Lycra, Gassed Single Jersey,           Viscose Lycra ,Terry Fabric, Interlock Polyester Fabric, Polar               Fleece Fabric, Cotton Mélange Single Jersey, Cotton Mélange               with Lycra.

    2)    Textiles- In order to get fully vertically integrated & be present from fiber                    to fashion, Ginni Filaments has entered into garment business                        with its first unit at Noida (near New Delhi, India).

Financials and overall co:-

PROS:

Good Quarters posted, a turn-around indeed! Expecting good results to continue. Promoters holding 61% of total equity. Trading less than 1.5 Times of its BV. Mcap to sales is near 0.28 while giants in this sector trading at 2!

CONS:

Average returning ratios with high debt! Huge inventories showing incapability of the management of selling these goods. RM cost is high for the co near 60% of total turnover!

Technical :-

Facing resistance at 28-30 zones. A close above 30 for 2 consecutive days might give some boost. Volume on 27th feb 2017 was 3rd highest in last 6 months.

Triggers :-

1) No effect of demonetisation.

2) Export oriented biz- dollar strengthening will help it.

3) Good Q3 and also posted good numbers this FY.

4) 9-month EPS stands more than 300% of FY 2015-16 EPS.

5) High Expectations from upcoming quarters.

My Take:-

       Ginni can give decent returns in next few months. Recommended @25 on 11th Jan on Moneycontrol, India’s No.1 Financial Portal with MTT1:37.5  MTT2: 48 MTT3: 65.

UPDATE 25th July, 2018:-

Targets all completed! 

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