Sumit Bilgaiyan
Suryaamba Spinning Mills is a leading manufacturer of specialty synthetic spun yarns. The core competitive strength of the company is its innovative product range, specifically tailor-made for the customers.
The company has current capacity of 45,000 spindles with the state of the art ultra-modern manufacturing machinery. It has installed value addition equipment, aims to fulfill the demand of export market and enhance profitability, with a capital expenditure of Rs 10 crore. It plans to fund this capex by using a mix of promoter's equity, retained�earnings and debt to ensure sustainable growth for the company in the future.
The company expects good demand for its products in domestic as well as international markets. The domestic market is on the path of healthy growth because of the demonetization and GST.
We believe Suryaamba is well placed to capture this structural shift aided by solid management pedigree. Hence we are recommending a�buy.
Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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