Vardhman Textiles, Gokaldas Exports Among Systematix' Top Stock Picks To 'Buy' In Textile Pack — Here's Why

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Systematix Research Report

The aggregate Q3 revenue of the four textile companies under our coverage Gokaldas Exports Ltd., KPR Mills Ltd., Vardhman Textiles Ltd and Welspun Living Ltd., increased by 13% YoY but fell 5% QoQ, broadly in line with our estimate.

Ebitda margins of companies within our coverage were flat YoY and contracted 30 bps QoQ due to higher raw material and freight costs faced by HT and garmenting companies, even as spinners witnessed healthy margin expansion.

Aggregate Ebitda rose 13% YoY but fell 8% QoQ, with APAT up 37% YoY and 16% QoQ, largely contributed by 31% YoY growth in Vardhman Textiles’ PAT and 65% YoY growth in Gokaldas Exports’ PAT (due to consolidation of acquired entities). We have cut our earnings for Vardhman Textiles (on weak spread), Welspun Living and Gokaldas Exports on higher raw material and freight and logistics costs, resulting from the ongoing Red Sea crisis.

Top picks: Vardhman Textiles (Buy) and Gokaldas Exports (Buy).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.