Sutlej Textiles and Industries Limited (STIL) was incorporated in the year 2005. The company
is a part of K.K Birla Group having interest in diverse fields like Fertilizers, Engineering,Textiles, Sugar, Tea, Coffee, Food Products, Media, Information Technology, Biotechnologyand Shipping.
is a part of K.K Birla Group having interest in diverse fields like Fertilizers, Engineering,Textiles, Sugar, Tea, Coffee, Food Products, Media, Information Technology, Biotechnologyand Shipping.
The company manufactures synthetic/blended/cotton yarns, fabrics, home textiles and
garments. STIL has an installed capacity of 2,53,000 spindles and 60 looms as of March 31,
2010. However STIL is predominantly a yarn manufacturer with sales of cotton yarn
contributing around 27% and that of synthetic yarn contributing around 67% to its total
revenue in FY10.
Key Highlights
Backward Integration: It has commercialized a 12-MW thermal power plant at Bhawanimandi unit. This investment will ensure a steady supply of quality power in thisenergy-intensive industry.
Increase in volumes on account of Expansion: STIL made an expansion of 31104spindles at Kathua unit to manufacture cotton melange and cotton blended dyed yarn. Thiswas completed and the commercial production commenced from May 1, 2009.
Future Outlook
BUY at Current market price of Rs 275, expecting 75 eps for full year . the stock is available at P/E of 3.51x of its FY11E earnings, HOLD for a month for a target price of Rs 350 .
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