The Indian textile industry is one of the oldest and largest in the world, contributing significantly to the country’s economy.
As per reports, India’s textile exports are projected to hit USD 190 billion by 2025-26, driven by the government’s initiatives like the Production-Linked Incentive (PLI) scheme worth Rs.10,683 crore for artificial fibres and technical textiles.
Additionally, the ongoing political crisis in Bangladesh has significantly impacted its textile industry, this situation has presented an opportunity for Indian textile companies to increase their market share and exports.
Indian textile stocks have seen a surge in demand and prices as global buyers look to diversify their supply chains away from Bangladesh.
Piotroski score, named after Stanford accounting professor Joseph Piotroski, is a number between ‘0’ and ‘9’ used to assess the strength of a company’s financial position. Financial investors use the score to find the best-value stocks.
Listed below are the smallcap stock under Rs. 100 with a high Piotroski score of upto 9:
Ashnoor Textile Mills Ltd
With a market capitalization of Rs. 76 crores, the shares of Ashnoor Textile Mills started Wednesday’s trading session on a lower note at Rs. 47, losing around 1 percent compared to its previous close of Rs. 47.43 apiece. The company has a Piotroski score of ‘8’.
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Looking at the company’s financial performance, the revenue increased by 40 percent from Rs. 35.48 crores during the March quarter to Rs. 49.71 crores in the June quarter. In addition, the net profits zoomed by around 90 percent from Rs. 2.45 crores to Rs. 4.65 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 11.60 percent and a return on capital employed (RoCE) of 17.07 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 5.75 percent.
Ashnoor Textile Mills Ltd is a company that specializes in the manufacturing and export of a variety of towel products. The company produces a full range of towels, including white, coloured, pool, and kitchen towels, primarily catering to medium and large hotel chains.
Filatex India Ltd
With a market capitalization of Rs. 2,928 crores, the shares of Filatex India started Wednesday’s trading session on a higher note at Rs. 65.24 compared to its previous close of Rs. 64.79.
During the trading session, the shares hit a high of Rs. 65.27, gaining around 2 percent and are currently trading at Rs. 63.93 apiece. The company has a Piotroski score of ‘8’
Coming onto the company’s financial statements (Standalone basis), the revenue jumped by around 3 percent from Rs. 1,026 crores during the March quarter to Rs. 1,054 crores in the June quarter. Contrastingly, the net profits decreased by around 9 percent from Rs. 35 crores to Rs. 32 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 9.19 percent and a return on capital employed (RoCE) of 11.35 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 2.58 percent.
Filatex India Limited is a leading manufacturer and trader of synthetic yarns and textiles in India. The company specialises in producing a variety of products, including Polyester Chips, Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), Polyester Textured Yarn, and Polypropylene Yarns, which are utilized in the garment industry for various applications such as apparel, upholstery, and automotive products.
Nandan Denim Ltd
With a market capitalization of Rs. 853 crores, the shares of Nandan Denim started Wednesday’s trading session on a lower note at Rs. 59.22, clocking a 5 percent lower circuit compared to its previous close of Rs. 62.34. The company has a Piotroski score of ‘9’
Looking at the company’s financial performance, the revenue increased by around 25 percent from Rs. 579.12 crores during the March quarter to Rs. 721.62 crores in the June quarter. Contrastingly, the net profits declined by 72 percent from Rs. 27.11 to Rs. 7.49 crores during the same timeframe.
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In terms of key financial metrics, the company reported a Return on Equity (RoE) of 7.68 percent and a return on capital employed (RoCE) of 15.41 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 2.23 percent.
Incorporated in 1994, Nandan Denim Limited is a textile company based in Ahmedabad, Gujarat, India. It specializes in the manufacturing and sale of a variety of fabrics, primarily focusing on denim, cotton fabrics, and yarn.
Written By Vaibhav Patil
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