Home / Knowledge / News / Textiles / Branded textile producers attract good valuations
Branded textile producers attract good valuations
19
Nov '12
Textile manufacturing companies have never been darlings of Indian stock markets, mainly because of their capital intensive and cyclic nature of the business.

However, Indian textile firms which are in to branding of fabrics and apparels are potential companies which can attract eyeballs of stock market investors.

For instance, the share price of Mandhana Industries is currently trading at twice the book value. As on November 16, the share was trading at Rs 240.55 while its book value is Rs 120.  It is also trading at a very low discount to its two year PE average of 11.79 against the current PE of 10.79.

Mr Mitesh Shah – CFO at Mandhana Industries which reported revenues of Rs 9.80 billion in fiscal year 2011-12 says, “Textile companies in to branding have more visibility as compared to other textile firms.

He adds, Textile firms in to branding spend a lot of money on advertising and marketing than other normal players, which increases the awareness of these companies among stock market investors”.

“Moreover, textile companies which have retail operations too tend to attract the attention of investors and stocks of these companies are valued higher than those of non-branded fabric and apparel producers”, he winded up by saying.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search