Equity Research On Brfl
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- Words: 549
- Pages: 23
-:BOMBAY RAYON FASHION LIMITED:-
P R E S E N T E D BY: SIDHARTHA SANKAR SAMAL
FUNDAMENTAL ANALYSIS
TEXTILE INDUSTRY
Account 14% to total industry out put. Accounts about 30% in the total export Global recession Less export orders Price of raw materials like cottons Bottleneck like Power,Tamilnad Growing Economy and potential domestic and international market Abundant Raw material availability that helps industry to control costs and reduces the lead time across the operation. Availability of low cost and skilled man power provides competitive advantage to industry. Growth rate of domestic textile industry is 6-8% per annum Greater investment and FDI opportunities are available.
ECONOMY ANALYSIS
According to Shri. R.K. Dalmia, Chairman of the Confederation of Indian Textile Industry :Stimulus package v It has also been affected by negative government decisions Reduction of drawbacks rates withdrawal of interest subvention on export credit Increase in minimum support prices for cotton.
Exchange Rate Export earnings increased as Rupee depreciates (50% to USA Exports)
GDP- Has Decreased Inflation has Increased put negative impact
COMPANY ANALYSIS
It was incorporated as Mudra Fabrics Private Limited (MFL) on May 21, 1992 On October 13, company was converted into a public limited company. On September 30, 2004 it was named as Bombay Rayon Fashion limited (BRFL). Promoter Mr. Janardhan Agrawala. Mr. Aman Agrawal and Mr. Prashant Agrawal Share holdings:- The major chunk(Till 30/9/2008) Indian Promoter-48.42% Mutual Funds-12.82 FIIs-37.92
PEER VALUATION
Operating Segments: It has capacity to produce 28.8mn garments but after the full expansion, the capacity will reach approximately 71.4mn pieces. It has sold 14.64mn pieces of garments in FY08
The current capacity of fabric manufacture is 55mn meters, out of which it has sold 48.86mn meters during FY08.After the expansion the fabric capacity will reach approx 235mn meters of fabric
The company has taken up massive expansion plans, which include setting of garment manufacturing capacity of 100000 pieces per days and fabric capacity of 180mn/annum. Garments unit are coming up at Ichalkaranji, Nanded, Latur and Osmanabad.
COMPETITIVE OPERATIONAL BUSINESS MODEL:- The company has yarn dyeing, processing, and garment sewing at the same loca-tion, which helps it to reduce the lead time to 30 days.
Labor Intensive Industry- China and India (Beneficiary)
TECHNICAL ANALYSIS
Major Acquisitions
FINANCIAL OUT LOOK
FORECASTED FIGURE
TREND LINE
5 DAYS MOVING AVERAGE
50 DAYS MOV.AVG
E X P O N E N T I A L M O V I N G AV E R A G E
Interpretation:
In our case BRFL the beta of its stock is 1.03, it’s more than1,it will react 3% more strongly than the average ups and downs of the market. It’s better in rising markets ; they tend to rise in the value more. In our case the correlation of BRFL is 0.46307.It means the security will move in the same direction of the market It means if the market return is high the return on security will be high and visversa. But the return will vary .04% than the market return.
RESISTENCE AND SUPPORT
CONCLUSION
HOLD
BUY
EXISTING NEW ENTRANT
Thank You
P R E S E N T E D BY: SIDHARTHA SANKAR SAMAL
FUNDAMENTAL ANALYSIS
TEXTILE INDUSTRY
Account 14% to total industry out put. Accounts about 30% in the total export Global recession Less export orders Price of raw materials like cottons Bottleneck like Power,Tamilnad Growing Economy and potential domestic and international market Abundant Raw material availability that helps industry to control costs and reduces the lead time across the operation. Availability of low cost and skilled man power provides competitive advantage to industry. Growth rate of domestic textile industry is 6-8% per annum Greater investment and FDI opportunities are available.
ECONOMY ANALYSIS
According to Shri. R.K. Dalmia, Chairman of the Confederation of Indian Textile Industry :Stimulus package v It has also been affected by negative government decisions Reduction of drawbacks rates withdrawal of interest subvention on export credit Increase in minimum support prices for cotton.
Exchange Rate Export earnings increased as Rupee depreciates (50% to USA Exports)
GDP- Has Decreased Inflation has Increased put negative impact
COMPANY ANALYSIS
It was incorporated as Mudra Fabrics Private Limited (MFL) on May 21, 1992 On October 13, company was converted into a public limited company. On September 30, 2004 it was named as Bombay Rayon Fashion limited (BRFL). Promoter Mr. Janardhan Agrawala. Mr. Aman Agrawal and Mr. Prashant Agrawal Share holdings:- The major chunk(Till 30/9/2008) Indian Promoter-48.42% Mutual Funds-12.82 FIIs-37.92
PEER VALUATION
Operating Segments: It has capacity to produce 28.8mn garments but after the full expansion, the capacity will reach approximately 71.4mn pieces. It has sold 14.64mn pieces of garments in FY08
The current capacity of fabric manufacture is 55mn meters, out of which it has sold 48.86mn meters during FY08.After the expansion the fabric capacity will reach approx 235mn meters of fabric
The company has taken up massive expansion plans, which include setting of garment manufacturing capacity of 100000 pieces per days and fabric capacity of 180mn/annum. Garments unit are coming up at Ichalkaranji, Nanded, Latur and Osmanabad.
COMPETITIVE OPERATIONAL BUSINESS MODEL:- The company has yarn dyeing, processing, and garment sewing at the same loca-tion, which helps it to reduce the lead time to 30 days.
Labor Intensive Industry- China and India (Beneficiary)
TECHNICAL ANALYSIS
Major Acquisitions
FINANCIAL OUT LOOK
FORECASTED FIGURE
TREND LINE
5 DAYS MOVING AVERAGE
50 DAYS MOV.AVG
E X P O N E N T I A L M O V I N G AV E R A G E
Interpretation:
In our case BRFL the beta of its stock is 1.03, it’s more than1,it will react 3% more strongly than the average ups and downs of the market. It’s better in rising markets ; they tend to rise in the value more. In our case the correlation of BRFL is 0.46307.It means the security will move in the same direction of the market It means if the market return is high the return on security will be high and visversa. But the return will vary .04% than the market return.
RESISTENCE AND SUPPORT
CONCLUSION
HOLD
BUY
EXISTING NEW ENTRANT
Thank You
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