Arrow Webtex in its new Avatar ( BSE CODE 532848) got listed on 28th May 2007,after getting merged with Crede Holding Co. Ltd. Arrow Webtex old ( BSE CODE 514193) was a 23 year old company pioneer in Elastic and Nonelastic Tapes, woven and printed labels having clients such as VIP,Colorplus,Rupa,Jockey,Kouton,Nike,Park Avenue,Zodiac,Dixcy,Heinnes and Mauritz etc .Almost all the top brands and many other garment and under-garment exports and domestic brands.
After merger equity of Arrow Webtex new increased to Rs. 10.5 crores from its earlier equity of Rs. 3 crores. New Arrow Webtex has 3 subsidiary companies namely :
- Fasttrack Impex Pvt Ltd in Real Estate Development
- Aryanish Finance & Investment Pvt ltd in Real Estate Investments
- High Street Cruise and Entertainment Pvt Ltd in Gaming and Entertainment
Latest Results for Q4 ended 31st March appear very encouraging:
Scrip Code : 532848 Company Name : Arrow Webtex Ltd
Considering that its the 1st Quarter after merger, an EPS of Rs. 9.4 on equity of Rs. 10.5 crores amounts to an EPS of Rs. 33.25 on premerger equity of Rs. 3 crores. and gross margin EBIDT of 71% and Net margin of about 50% is really awesome.On a prorata basis co. should show top line of Rs. 80 +crore with EPS of Rs. 40 for FY08.
Arrow Webtex OLD on an equity of Rs. 3 crore had an EPS of Rs. 45 for FY06 and was commanding a price of Rs. 948 ( 52 weeks High ) as on 27th April 2006
Scrip Code : 514193 Company Name : Arrow Webtex Ltd OLD
For FY 08 we expect EPS to exceed Rs. 50 and the share may command P/E of atleast 20 and thus market price may touch Rs. 1000 or near about in one year .
BUY at CMP of Rs. 225 is recommended with atleast one year HOLD