RIBA TEXTILES LTD (531952) - STOCK OF THE WEEK

Dear Friends, Today I am expressing my view on one Textile stock.

RIBA TEXTILES LTD (531952)

Riba Textiles Limited is fastest growing an export oriented Terry Towels and Tufted Rugs manufacturing company. Riba is an fully integrated unit with a state of the art composite plant encompassing Dyeing, Weaving, Finishing, Printing, Embroidery and able to transform cotton yarn into amazing towels / bath rugs for the discerning customers. 

Company growing exponentially over the past decade with current capacity of 7,000 tons per annum due for another expansion in 2018. The production unit covers 16 acres of land with an built up area of 400,000 square feet encompassing all the latest machineries from across the globe.

Company mainly engaged design & manufacturing of following products.

1               Bath Towels

                  Beach Towel

                 Tuffed bath mats.

1 Bath Towels

Riba Manufactures different range of Bath towels. Which includes SPA Towels,Yarn dyed , Plain dyed, Printed border, Embroidered & Bath robes.

One of company’s fastest growing bath ranges is SPA towel which cover the exotic Spa segment which includes the normal bath sizes along with Bath Mats and Hair Wraps. These ranges experiment a lot with various yarns and Egyptian / Cotton Bamboo are hot favourites.

2.Beach Towels

This is another fastest growing segment, which mainly includes Double Jacquard towels, Weft insert repair towels, Sublistatic printed & Beach accessories.

3. Tuffed bath mats.

In this segment company manufactures Yarn dyed, piece dyed and mat packs. Riba manufactures a range of high quality Yarn Dyed Tufted Bath Mats in dazzling designs and qualities. All the yarns are cone dyed to ensure perfect colour fastness and colour matching / consistency. The Tufted Bath Mats can be coordinated with bath ranges or can be standalone designs. 

CLIENTS OF THE COMPANY

Company website: Clickhere

FINANCIALS AND OUTLOOK

Company shares are trading in BSE. Promoter holding in company 60.72%

Company posted 35.75 Cr top line in March qtr.

(QoQ increased 17.9%)

Net profit is 1.91 Cr in the March qtr.

(Profit of 1.91 Cr!!!!!!!!!!!!! From Loss of 0.1 Cr QOQ)

Company reducing debt  ( Debt to Equity is 0.3)

Stock is trading low PE as compared to its peers.

EPS 4.45

Stock is trading at Rs 68.

Company posted stellar set of Numbers. Company is trading PE is low as compared to its peers.

Company’s new design of products are huge demand & company is also expanding its production capacity to meet the demand. By valuating the above, Company stock is trading far below its fair value undervalue at CMP, and this stock will give multifold 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”