Shares of Siyaram Silk Mills Ltd closed at the price of ₹ 568.25 on Friday’s trading session with a 1.11 percent dip. The company has a market capitalization of ₹ 2,673 Cr. Renowned investor Mr. Vijay Kedia owns a 1.08% stake or 5,05,000 shares of the company.
Siyaram Silk Mills Ltd is a Textile manufacturing company. incorporated in 1978, is a leading producer of blended fabrics in India. It is engaged in manufacturing fabrics and readymade garments, especially in the men’s wear section. The Siyaram brand retails in over 40,000 outlets across the country as well as the Company exports to countries like Abu Dhabi, Australia, Bahrain, Bangladesh, Cambodia, Canada, etc.
In the last three years, the company’s share price rose from ₹ 103.25 to the current level, giving multibagger returns of 495.08 percent. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares years ago, the value of their holdings would have been ₹5.95 lakhs today!
Having a quick walkthrough of the financials of the previous quarter, As per Consolidated financials their operating revenues have increased from ₹ 502 crores in Q3 to ₹ 695 crores in Q4 Similarly, for YoY comparison, the revenues significantly increased from ₹ 1,904 crores during FY 21-22 to ₹ 2,232 crores in FY 22-23.
The net profit of the company has increased from ₹ 51 crores in Q3 to ₹ 88 crores in Q4, Similarly, for YoY comparison the net profit slightly reduced from ₹ 216 crores during FY 21-22 to ₹ 250 crores in FY 22-23.
The basic profitability ratios exhibit operational efficiencies such as return on equity (ROE) and return on capital employed (ROCE). ROE slightly declined from 23.15 percent during FY 21-22 to 22.07 percent in FY 22-23 and ROCE, keeping the time frame the same, declined from 29.34 percent to 28.66 percent, and the debt-to-equity ratio stood at 0.13 for FY23.
ICICI Direct has recommended a target price of ₹ 710 or 25% upwards. Over the last decade, the company has gradually expanded its fabric and garment capacities and simultaneously managed to reduce the debt/equity from 1.0x in FY12 to 0.2x in FY23 and the company has reported a steady operational performance amid a challenging business scenario.
According to the latest data pertaining to the shareholding pattern, the promoters hold a 67.18 percent stake and Domestic Institutional Investors (DIIs) have a 4.83 percent stake in the company for FY 22-23.
Written by Omkar C
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