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CFAS - Garware Wall Ropes - Vipul Gupta
CFAS - Garware Wall Ropes - Vipul Gupta
Research Group
Management Development Institute
Garware Wall Ropes Limited
Current Market Price = 343.40
Market Cap = 751.42 Crore
52Week H/L=370.4/155.9
Absolute Rating BUY
P/E (TTM)
2.24
P/BV (TTM)
23.60
EPS (TTM)
OVERVIEW
Garware-Wall Ropes Limited is a public company domiciled in India and incorporated under the provisions of the
Companies Act, 1956. It was established in the year 1960 .Later its incorporated as a company in the year 1976( two
main promoters- Wall Industries Inc. of U.S.A and Garware Filament Corporation Pvt. Ltd, India). The Company is
engaged in manufacturing and selling various Technical textile products such as Ropes, Twine, Yarn, Fishnet, Other Nets
and Technical Textiles. It also provides solution to the infrastructure industries which include coastal protection, land
filling, etc. Its products are sold for deep sea fishing, aquaculture, shipping, agriculture, sports, and infrastructure,
transportation and defense applications. Company commands 70% market share of the domestic aquaculture market.
Fibre; 20%
Exports; 49%
Domestic; 51%
Synthetic cordage; 80%
Analyst: pg15vipul_g@mdi.ac.in
Unnati
INVESTMENT RATIONALE
FY 2014-15
Total Income
786.60
% of Total
Income
(Rs. Cr )
% of Total
Income
FY 2013-14
100.0%
688.79
100.0%
4.37
0.6%
4.23
0.6%
COGS
363.46
46.2%
316.34
45.9%
Gross Profit
418.77
53.2%
368.23
53.5%
Other OPEX
Excise Duty
339.36
43.1%
305.90
44.4%
EBIDTA
79.42
10.1%
62.24
9.0%
Depreciation
12.39
1.6%
14.39
2.1%
EBIT
67.03
8.5%
47.94
7.0%
Interest
10.25
1.3%
12.83
1.9%
3.82
0.5%
4.10
0.6%
PBT
60.61
7.7%
39.2
5.7%
TAX
17.49
2.2%
12.45
1.8%
PAT
43.12
5.5%
26.75
3.9%
RESULTS HIGHLIGHTS
Total Income
SECTOR PERFORMANCE
The Indian textiles industry, currently estimated at
around US $108 billion, is expected to reach US $ 141
billion by 2021. Technical textile is the sunrise sector of
the textile industry. Domestic technical textile market
has grown from $11Bn in 2011 to $14 bn in 2015. At the
same time the industry is projected to grow to a size of
$87bn by 2025. Among these sportstech, packetech and
mobitech markets will report highest growth. In sight of
this projected investment in technical textiles would be
around $7bn. The GOI is taking special steps like of Rs
Analyst: pg15vipul_g@mdi.ac.in
Other Income
ROCE
18.5%
12.5%
ROE
14.7%
9.9%
(Rs. Cr )
Q2 FY 15
% of Total
Income
Q2 FY 14
214.30
100.0%
202.77
100.0%
82.74
38.6%
94.16
46.4%
Gross Profit
131.56
61.4%
108.61
53.6%
Other OPEX
105.08
49.0%
87.38
43.1%
26.47
12.4%
21.23
10.5%
3.24
1.5%
2.81
1.4%
23.23
10.8%
17.09
8.4%
2.14
1.0%
2.95
1.5%
.34
0.2%
.45
0.2%
PBT
21.43
10.0%
15.92
7.9%
TAX
6.06
2.8%
5.06
2.5%
PAT
15.37
7.2%
10.86
5.4%
COGS
EBIDTA
Depreciation
EBIT
Interest
Other Income
Shareholding Pattern
Unnati
% of Total
Income
427 crores (US$ 69.12 million) for five years from 201415 for promotion of technical textiles in North-Eastern
regions.
NEWS
Company was awarded Institutional Award for R&D
Works by Central Board of Irrigation & Power (CBIP)
for its unmatched contribution to the geo-synthetics
sector. (Nov, 2015)
Vardhman
KEY
CONCERNS
72.21
9.9
Garware
89.72
14.5
Sep-15
Sep-14
60%
50%
40%
30%
20%
10%
0%
Disclosures:
Analyst: pg15vipul_g@mdi.ac.in
Unnati