(1/18)
About:
STIL is amongst India’s leading producers of dyed spun yarn and value added/specialty yarn. It also manufactures fabrics and home textiles.
The Co has units located in Rajasthan, Jammu & Kashmir, Himachal Pradesh and Gujarat.
About:
STIL is amongst India’s leading producers of dyed spun yarn and value added/specialty yarn. It also manufactures fabrics and home textiles.
The Co has units located in Rajasthan, Jammu & Kashmir, Himachal Pradesh and Gujarat.
(2/18)
Capacity:
The Company’s total spinning capacity was nearly 4.21 lakh spindles at the close of FY 2021- 22; daily effective production was 288 tonnes of dyed synthetic and blended yarns, cotton mélange and cotton blended mélange and dyed
yarns.
Capacity:
The Company’s total spinning capacity was nearly 4.21 lakh spindles at the close of FY 2021- 22; daily effective production was 288 tonnes of dyed synthetic and blended yarns, cotton mélange and cotton blended mélange and dyed
yarns.
(3/18)
Cotton industry overview:
Cotton is plant-based & sustainable over synthetic fibres. Cotton accounts for around 55% fibre used in global clothing & textile production.
Over 60% of the world’s cotton is grown in developing countries, employing over 100 mn farmers a year.
Cotton industry overview:
Cotton is plant-based & sustainable over synthetic fibres. Cotton accounts for around 55% fibre used in global clothing & textile production.
Over 60% of the world’s cotton is grown in developing countries, employing over 100 mn farmers a year.
(4/18)
India is the third largest exporter of cotton, having exported cotton to over 159 countries in FY22. India’s cotton exports rose to US$ 9.9 billion in FY22 compared to US$ 6.3 billion in FY21.
Cotton consumption is consistently on the rise due to increasing demand.
India is the third largest exporter of cotton, having exported cotton to over 159 countries in FY22. India’s cotton exports rose to US$ 9.9 billion in FY22 compared to US$ 6.3 billion in FY21.
Cotton consumption is consistently on the rise due to increasing demand.
(5/18)
Govt Initiatives:
• PLI scheme for the textile industry with an approved outlay of ₹10,683 crore for 5 years
• The govt aims to establish integrated textile parks & technology upgradation funds scheme to boost private investment in the Indian textile & apparel Inds.
Govt Initiatives:
• PLI scheme for the textile industry with an approved outlay of ₹10,683 crore for 5 years
• The govt aims to establish integrated textile parks & technology upgradation funds scheme to boost private investment in the Indian textile & apparel Inds.
(6/18)
Demand Drivers of The Indian Textile Industry:
• Growing Population
• Raw Material Abundance
• Increasing Disposable Income
• Large Youth population
• Digitial Penetration
• Preferential Shift
Demand Drivers of The Indian Textile Industry:
• Growing Population
• Raw Material Abundance
• Increasing Disposable Income
• Large Youth population
• Digitial Penetration
• Preferential Shift
(7/18)
Key Indicators of STIL FY22 vs FY19 (Pre pandemic)
• EPS: 9.50 vs 4.01
• BVPS: 68.99 vs 57.80
• D/E Ratio: 0.82:1 vs 0.97:1
• EBITDA/Gross Turnover: 13.73% vs 9.63%
• NPM: 5.12% vs 2.56%
• RoNW: 13.77% vs 6.94%
Key Indicators of STIL FY22 vs FY19 (Pre pandemic)
• EPS: 9.50 vs 4.01
• BVPS: 68.99 vs 57.80
• D/E Ratio: 0.82:1 vs 0.97:1
• EBITDA/Gross Turnover: 13.73% vs 9.63%
• NPM: 5.12% vs 2.56%
• RoNW: 13.77% vs 6.94%
(8/18)
Ratings:
As at the end of FY22, STIL has been assigned a rating of:
• IND A+ Outlook: Stable for term loan bank facilities
• IND A+ / Stable / IND A1+ for fund based and non-fund based working capital limits.
Ratings:
As at the end of FY22, STIL has been assigned a rating of:
• IND A+ Outlook: Stable for term loan bank facilities
• IND A+ / Stable / IND A1+ for fund based and non-fund based working capital limits.
(9/18)
Key Strengths:
• Experienced Management:
STIL was part of the erstwhile K.K. Birla Group. In 2011 it came under Ms. Nandini Nopany faction. STIL is led by a team of experienced professionals led by Mr. Updeep Singh having more than 25 years’ experience in Textile ind.
Key Strengths:
• Experienced Management:
STIL was part of the erstwhile K.K. Birla Group. In 2011 it came under Ms. Nandini Nopany faction. STIL is led by a team of experienced professionals led by Mr. Updeep Singh having more than 25 years’ experience in Textile ind.
(10/18)
• Diversified customer base:
STIL has a diversified large customer base with no single customer accounting for over 10% of gross sales. Its top ten customers contributed ~22% to gross sales. It sells its products both domestically & across the globe. Export share: 44%.
• Diversified customer base:
STIL has a diversified large customer base with no single customer accounting for over 10% of gross sales. Its top ten customers contributed ~22% to gross sales. It sells its products both domestically & across the globe. Export share: 44%.
(11/18)
• Improved operating performance in FY22:
STIL reported improvement in total income by 59.25% in FY22 vs FY21 on account of higher volumes due to pent-up demand. During FY22 the yarn division’s profitability has also improved to 11.39% from 3.87% in FY21.
• Improved operating performance in FY22:
STIL reported improvement in total income by 59.25% in FY22 vs FY21 on account of higher volumes due to pent-up demand. During FY22 the yarn division’s profitability has also improved to 11.39% from 3.87% in FY21.
(12/18)
• Moderate capital structure and debt coverage metrics:
Debt coverage indicators such as total debt to GCA improved to 2.99x from 9.47x YoY.
Interest coverage ratio improved to 8.32 times in FY22 vs 2.89x in FY21
Gearing continues to remain moderate at 0.86x
• Moderate capital structure and debt coverage metrics:
Debt coverage indicators such as total debt to GCA improved to 2.99x from 9.47x YoY.
Interest coverage ratio improved to 8.32 times in FY22 vs 2.89x in FY21
Gearing continues to remain moderate at 0.86x
(13/18)
Weaknesses:
• STIL’s home textile division which contributes around 5% to the overall turnover continues to impact the company's overall profitability on account of lower turnover and high fixed costs. The division posted a loss of ₹33.48 crore in FY22.
Weaknesses:
• STIL’s home textile division which contributes around 5% to the overall turnover continues to impact the company's overall profitability on account of lower turnover and high fixed costs. The division posted a loss of ₹33.48 crore in FY22.
(14/18)
• Cyclical and fragmented industry:
STIL operates in a cyclical and fragmented textile yarn industry marked by organised as well as unorganised players. Intense competition in the industry limits the pricing abilities of the players in the industry.
• Cyclical and fragmented industry:
STIL operates in a cyclical and fragmented textile yarn industry marked by organised as well as unorganised players. Intense competition in the industry limits the pricing abilities of the players in the industry.
(15/18)
• Raw material volatility:
STIL uses RM like cotton, polyester, etc.
Cotton prices are volatile driven by factors like yield for the year, govt regulation & pricing, etc
Polyester, a derivative of crude oil is continuously affected by the movement in crude oil prices
• Raw material volatility:
STIL uses RM like cotton, polyester, etc.
Cotton prices are volatile driven by factors like yield for the year, govt regulation & pricing, etc
Polyester, a derivative of crude oil is continuously affected by the movement in crude oil prices
(16/18)
• Clientele:
The Company’s marquee clients comprise Jockey, Westside, Marks & Spencer, Arvind, Raymond, Donear NXG, Siyaram’s, Arrow, Grasim Bhiwani (GBTL), Digjam, JCPenney, Monte Carlo, and Pantaloons, among others.
• Clientele:
The Company’s marquee clients comprise Jockey, Westside, Marks & Spencer, Arvind, Raymond, Donear NXG, Siyaram’s, Arrow, Grasim Bhiwani (GBTL), Digjam, JCPenney, Monte Carlo, and Pantaloons, among others.
(17/18)
Though the sales growth numbers seems moderate, the company’s OPM seems to be improving quite a lot quarter by quarter. Which is a healthy sign for the company going forward.
Though the sales growth numbers seems moderate, the company’s OPM seems to be improving quite a lot quarter by quarter. Which is a healthy sign for the company going forward.
(18/18)
Which Textile company is in your Radar?
@caniravkaria @stockifi_Invest @VRtrendfollower @kuttrapali26 @MadhusudanKela
Which Textile company is in your Radar?
@caniravkaria @stockifi_Invest @VRtrendfollower @kuttrapali26 @MadhusudanKela
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