VIPPY SPINPRO LTD (514302) - STOCK OF THE WEEK

Dear Investors, today I am expressing my view on one undervalue Textile stock.

VIPPY SPINPRO LTD (514302)

Vippy Spinpro is a Textile company established in 1992. Main business is in the field of manufacturing cotton yarns used in various Textile mills for further processing & manufacturing of clothes.

Company manufactures and sells cotton yarns in India. The company offers special purpose, slub, fancy, multi count, multi twist, waxed, plied, and florescent free yarns. Its yarn products are used in various applications, such as denim, terry towels, bottom weights, home furnishings, bed linens, knitting, surgical clothes, artistic canvas products, industrial fabrics, sheeting, home textiles, etc. The company’s yarn products are also used as a weft in flannel cloth for made ups. It also exports its products.

 Company started with a capacity of 7 Mt/day of open end of 100& cotton yarn and now Vippy Spinpro is expanded its capacity to 25 MT/day. This shows the companys growth trajectory.

Company is having its manufacturing unit in Deawas, near to  Indore which is major cotton producing area.

Company is having following major equipments to support it manufacturing facility.

PRODUCTS AND END USES.

QUALITY

Company is committed to provide yarn with agreed specification and deliver them in time to ensure the satisfaction of valued customers. This is achieved through continual improvement in quality management system, encouragement and motivation of each of employees. 

Company received its first ISO Certification in 1996 from SGS and now certified from BUREAU VERITAS ISO 9001:2008 since 2004.

Company website: Clickhere

FINANCIALS AND OUTLOOK

Company shares are trading in BSE. Promoter holding in company 54.76% (Increased in March qtr)

Company posted 25.13 Cr top line in March qtr.

(QoQ increased 13.5%)

Net profit is 1.27 Cr in the March qtr.

(QoQ increased 14%)

Company reducing debt  ( Debt to Equity is 0.16)

Stock is trading low PE 7 as compared to industry PE & its peers.

EPS 5.65

Book value Rs 55

Stock is trading at Rs 42.

Company posted good set of Numbers both in QOQ and YOY basis. Company is trading below book value and PE is very low as compared to its peers as well as Industry PE.

Promoters have increased their stake in the company, and denim business is doing very well is a huge Positive for the company.

By valuating the above, Company stock is hugely undervalue at CMP, and this stock will fetch handsome returns to Investors in future.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”