A stock that sunk more than 40% of its market cap since 2022 beginning, π»
Is it time for revival/turnaround? β
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CMP: 154
[A brief analysis π§΅π§΅]
#investing #stockstobuy #multibagger
Is it time for revival/turnaround? β
ππ‘ππ’ ππ’π¨π‘π§ ππ‘ππ¨π¦π§π₯πππ¦
CMP: 154
[A brief analysis π§΅π§΅]
#investing #stockstobuy #multibagger
We will cover:
- About the company β
- Current Market scenario β
- Future triggers β
- Anti - Thesis β
- Chart Analysis β
Let's go ππ»
- About the company β
- Current Market scenario β
- Future triggers β
- Anti - Thesis β
- Chart Analysis β
Let's go ππ»
About the Company:
Indo Count (ICIL) is Worldβs the Largest Global Home Textile Bed Linen manufacturing Company & one of Indiaβs largest home textile manufacturer, exporter with an extensive product portfolio spanning across bed sheets, quilts & bed linen.
Indo Count (ICIL) is Worldβs the Largest Global Home Textile Bed Linen manufacturing Company & one of Indiaβs largest home textile manufacturer, exporter with an extensive product portfolio spanning across bed sheets, quilts & bed linen.
The company's currently has a capacity of 153 million metre per annum of dyeing/processing and cutting /sewing. β
The companyβs products are exported to nearly 54 countries with US being the prime market (75% of revenues & the Company commands a market share of approximately 20%+ in the bed sheets market of US)
It is present amongst the top nine out of 10 top big box retailers in US.
It is present amongst the top nine out of 10 top big box retailers in US.
Current Market scenario:
India has lost market share in the US bed sheets market (from 61% to 53%). π»
India has lost market share in the US bed sheets market (from 61% to 53%). π»
The reasons for this market share can be attributed to all-time high cotton prices & softening of US demand (lower housing sales due to extremely costly real estate) as well as a a decline in retail spending due to recessionary environment, high energy prices, low jobs etc. β
Good performance despite being under pressure over the last quarter:
Despite significant cost inflationary pressure, the CO has been able to maintain its EBITDA margin guidance of 15-18%.
Despite significant cost inflationary pressure, the CO has been able to maintain its EBITDA margin guidance of 15-18%.
The management has indicated that it expects the trend in average realization to remain positive, going ahead, owing to higher proportion of value added products. β
Also, ICIL has taken price hikes and is constantly increasing its share from its D2C business where the margins are as high as 25-30%.
Secondly the company has been engaging with customers to pass on any input cost inflation. π΅
Secondly the company has been engaging with customers to pass on any input cost inflation. π΅
Future triggers:
The US home textiles market is expected to grow by 50% to become a $9 billion market by 2025 from the current $6 billion.
The US home textiles market is expected to grow by 50% to become a $9 billion market by 2025 from the current $6 billion.
The Bill passed by the US Senate to ban imports of cotton products from Chinaβs Xinjiang region is expected to further fuel βChina+1β strategy (80%+
of Chinese cotton is produced in that region)
of Chinese cotton is produced in that region)
Commentary on FTA, likely to be passed in Oct 2022:
In terms of the impact on different sectors, the document stated that the largest increases in economic activity could be in the UK transport equipment, manufacture of electrical equipment and motor vehicle sectors.
In terms of the impact on different sectors, the document stated that the largest increases in economic activity could be in the UK transport equipment, manufacture of electrical equipment and motor vehicle sectors.
The document stated that βcertain agricultural and food sectors, as well as the textile industry, could face an increase in import competitionβ.
However, it stated that βconsumers could also benefit from more choice and lower pricesβ.
However, it stated that βconsumers could also benefit from more choice and lower pricesβ.
Anti - Thesis: π©π©
Huge increase in Debt:
The Company currently has a debt of βΉ 1300 cr.
Low demand from international markets has led to Inventory days spiking significantly.
Huge increase in Debt:
The Company currently has a debt of βΉ 1300 cr.
Low demand from international markets has led to Inventory days spiking significantly.
While the recently concluded huge acquisition & capex (recently acquired the home textiles division of GHCL for 576 cr) has led to a huge increase in debt.π©
These factors have weighed down heavily upon on the stock performance of ICIL.
These factors have weighed down heavily upon on the stock performance of ICIL.
Chart Analysis: (Weekly)
As we can se on charts, the stock has currently taken support from the 0.618 fib levels.
Any weekly closing above 0.5 fib level (zone)could lead to a next leg of rally.
View invalid if the 0.618 levels are broken on the downside. β
As we can se on charts, the stock has currently taken support from the 0.618 fib levels.
Any weekly closing above 0.5 fib level (zone)could lead to a next leg of rally.
View invalid if the 0.618 levels are broken on the downside. β
Do let us know your views on this company!
Are you tracking this stock?
Any other tunrarounds in your mind? Let us know in the comments π©
Do LIKE + RETWEET to share with maximum investors. β»
Are you tracking this stock?
Any other tunrarounds in your mind? Let us know in the comments π©
Do LIKE + RETWEET to share with maximum investors. β»
Disclaimer: Not invested.
Investage Capital is not SEBI registered. The analysis shared in this thread is for educational & knowledge sharing purposes only. This is not a buy/sell recommendation of any form. Kindly consult with your financial advisor before taking any action.
Investage Capital is not SEBI registered. The analysis shared in this thread is for educational & knowledge sharing purposes only. This is not a buy/sell recommendation of any form. Kindly consult with your financial advisor before taking any action.
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