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Arrow Textiles may turn out to be a multibagger like Arrow coated products

Arrow Textiles a  company that resulted from demerger of Arrow Webtex in November 2008 is about to take off into a new trajectory more or less like Arrow Coated Products which was recommended in this column some 3 years back .

Arrow Textiles customers  are well known names in undergarments sections of textile industry namely :

Customers
(in alphabetical order)
Woven Labels Fabric Printed Labels Woven Elastic Tapes Woven Rigid Tapes
AMUL Brand Hosiery
Colorplus
Hennes & Mauritz
Indian Terrain
Jockey
LUX Brand Hosiery
Fila
Cubus
Rupa Brand Hosiery
Several Exporters & Domestic Brands
VIP brand Hosiery
Turtle

And over the last five years  the company’s Financial performance has improved considerably and presently EPS is close  2 and P/E of less than 5.

(in Cr.) 2014 2013 2012 2011 2010
Annual Trends
Revenue 41.90 36.87 31.94 29.31 23.43
Other Income 0.84 0.48 1.40 0.04 0.01
Total Income 42.74 37.35 33.33 29.36 23.44
Expenditure -32.70 -29.99 -25.84 -23.22 -20.60
Interest -1.60 -2.85 -4.31 -1.45 -1.30
PBDT 8.45 4.50 3.18 4.68 1.54
Depreciation -3.17 -3.03 -2.89 -1.88 -1.42
PBT 5.27 1.47 0.29 2.80 0.12
Tax -1.69 1.52 -0.56 -1.43 -0.56
Net Profit 3.57 2.98 -0.27 1.38 -0.44
Equity 19.04 19.04 19.04 13.60 13.60
EPS 1.88 1.56 -0.14 1.01 -0.32
CEPS 3.54 3.15 1.38 2.39 0.72
OPM % 23.96 19.94 23.46 20.91 12.11
NPM % 8.53 8.07 -0.85 4.69 -1.88
Detailed Detailed Detailed Detailed Detailed
View in (Million) Prior Period
Quarterly Trends

  • (in Cr.) Jun-14 Mar-14 Dec-13 Sep-13 Jun-13 Mar-14
    Income Statement
    Revenue 10.92 11.83 11.44 9.42 9.21 41.90
    Other Income 0.01 0.17 0.02 0.21 0.45 0.84
    Total Income 10.93 12.00 11.46 9.63 9.66 42.74
    Expenditure -8.57 -8.51 -9.47 -7.51 -7.21 -32.70
    Interest -0.27 -0.32 -0.35 -0.41 -0.52 -1.60
    PBDT 2.09 3.17 1.65 1.71 1.93 8.45
    Depreciation -0.80 -0.80 -0.80 -0.79 -0.78 -3.17
    PBT 1.29 2.36 0.85 0.91 1.15 5.27
    Tax -0.53 -0.75 -0.34 -0.27 -0.34 -1.69
    Net Profit 0.76 1.62 0.50 0.64 0.81 3.57
    Equity 19.04 19.04 19.04 19.04 19.04 19.04
    EPS 0.40 0.85 0.26 0.34 0.43 1.88
    CEPS 0.82 1.27 0.68 0.75 0.84 3.54
    OPM % 21.57 29.46 17.42 22.47 26.57 23.96
    NPM % 6.96 13.66 4.41 6.84 8.79 8.53
  • Given the growth in  user Industry like Page , Rupa, TT, Maxwell etc, its just a matter of time that Arrow Textile might follow the same trajectory like that of Page .

Buy is recommended at CMP ..

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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