SKY INDUSTRIES LTD (526479) - STOCK OF THE WEEK

Dear Investor friends, Today i am expressing my view on one Technical textile stock.

SKY INDUSTRIES LTD (526479)

Sky Industries Limited an India-based company and leading player in narrow woven fabrics, (technical textiles) business of hook and loop tapes, and other. The Company operates in the narrow woven fabrics industry. Company owned by SK group. The company was first incorporated in 1989 as Fine Velvets and Plastofabs Private Limited. In 1993 the name of the company changed to Sky Industries. 

Sky Industries Ltd., has evolved from being one of the smallest players in the industry to owning the highest market share of 74% approximately in India alone for its hook and loop product. This apart from being one of the foremost Indian manufacturers and exporters of narrow woven fabrics, hook and loop tape fasteners, velvet/satin ribbons and knitted elastics, to name a few.

Today if we name any field, Company has its products/ accessories are being used in almost every field starting from Defence, Foot wares, Orthopaedic, Automotive, sports, Personal protective equipment, Packaging, Apparels, Infant wear, Cable Networking, Medical Accessories, Aviation, Hygiene, Home furnishing and many more. 

Today if we name any field, Company has its products/ accessories are being used in almost every field starting from Defence, Foot wares, Orthopaedic, Automotive, sports, Personal protective equipment, Packaging, Apparels, Infant wear, Cable Networking, Medical Accessories, Aviation, Hygiene, Home furnishing and many more.

PRODUCTS & APPLICATION

Hook and Loop:  This is being used in our day to day products. Depending upon the industrial usage company manufactures custom made hook and loop products.

Insect screen:  Skynet Insect Shield , a popular product from the company use of hook & loop tape fasteners is to secure anti-mosquito netting or insect screens to window frames.

Company have recently entered the metal net segment through Sky Guard. Along with protecting from mosquitoes, Sky Guard can also be installed outside the exhaust fan duct for protection from rats, cockroaches, wall lizards & other nocturnal species.

Neoprene Fabrics: These products are widely used in Sports, Orthopaedic and Saddlery amongst many others.

Velvet: Skelvet is the brand name of the product, premium quality velvet ribbons.
Skelvet is largely preferred in upholstery, home furnishings, garments, home décor, giftingmaterial,softtoys,etc.

Elastics: These products are for supplying the quality elastic tapes which are being used in industries viz. lingerie, sportswear, footwear etc., making the brand unchallenged in the market.

Apart from the above company has products for automotive industries and aviation industries. Products for Auto sleeve segments also.

Companies Magic HS hook and loop widely used in defence, footwear and many industries. Which are based on IS standards. Fire retardant products and tapes are being widely used in Personal Protective Equipment.

Companies Micro hook and Velvet products are used in Infant wear products.

Company specially designed Aplix Aerospace products are widely used in Aviation industries. Micro hook and Velvet products are used in Infant wear products.

There are many products are being manufactured by the company, details are available on the website below.

Company website: Click here 

FINANCIALS AND OUTLOOK

Company shares are trading in BSE.

Promoter holding: 49.58 % as on sept qtr. (Increased from March qtr.)

Company posted 13.5 Cr top line in sept Qtr.

Net profit is 0.65 Cr bottom-line in sept Qtr.

Operating margins were improved

Reducing Debt Company.

Stock is trading at Rs 58

PE is low as compared peers.

Company is mainly engaged in the business hook and loop tape products. These products are widely used in all segment of industries. As these products are coming under consumption themes of the segment which is huge demand in future will be a positive for the company. Promoters have increased their stake in the company from March qtr, which reflects the potential for future growth for the company.

By considering above, and performance of the company investors will get handsome returns in a days to come.

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”