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Brief Information about Company (Investor Point
of view):
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CMP : 270/-
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Equity
Capital & Face Value : 1,43,42,150 Shares of Rs 10/-Each
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Promoter
‘Holding : 61.45%
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Market
Cap (Cr) : 390.77 Cr
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Listed
on : BSE & NSE
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Turnover
& Profit : 157.41Cr
& 26.70 Cr (2014-15)
115.17 Cr & 21.60 Cr as on 31.12.15)
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Debt
Status : 32.12 Cr as
on 30.9.2015
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P/E : Stock P/E 13.97
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52 Week
High/Low : 495/232
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Book
value (Rs) : 80.21
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About Company:
Orbit Export is a leading
manufacturer and exporter of novelty fabrics. Company exporting its product
more than 32 countries at present .The Company export 2 Million meter fabric
every quarter. Orbit Exports operates across multiple verticals, from women
apparel to Christmas crafts and home décor, with further interest in occasion
specific fabrics and finished product. It has around 625 clients and serves
niche name like Calvin Klein, Adriana Purple, H&M, and Zara etc. The
company is recognized star export House.
Company has also
established a wholly subsidiary company in Los Angeles USA, WITH A Purpose to
have a presence in North America to serve its potential marketing central and South
America.
Company has also been
recognized by FORBES as “ best under a billion” in Asia.
Orbit Export has its
manufacturing plant in Surat (Gujarat), Kalyan and Dombivali (Maharashtra).
Company also has new expansion in Kosamba, Gujarat by incorporating state of
the art technology for capturing a better edge in international market
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Product Type
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Jacquard Fabrics
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Dobby Fabrics
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Made Up Ribbon and Christmas
Decorative
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Company’s
Fabric business contributes 75% to the total revenue while the made up
contribute 25% to the business
In
the year 2003-04, owning to dismal financial and loss of clients, company was
on the verge of referred to Board of Industrial Financial Restructuring (BIFR).
In that year Company has net sales of merely Rs 9.7 Cr., with a net loss of
3.3Cr and accumulated loss was Rs 4.8Cr and highly leveraged Balance Sheet
(High Debt).
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was in this precarious condition that the current Management of the company led
by Mr. Pankaj Seth acquired Orbit. With his experience in textile exports,
untiring effort and ethical manufacturing practices Mr. Seth revived the
company. New Clients, orders and expansion were undertaken and the net worth of
the loss making company was revived.
Today
in textile segments orbit generates among the highest margins an return for its
shareholders in the industry.
Financial:
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2015-16 (Up to Dec)
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2014-15
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Sales
(In Cr)
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115.17
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157.41
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PAT (In Cr)
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21.60
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26.70
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EPS (Rs.)
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15.06
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17.74
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OPM
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31.17%
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28.01%
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Key Points:
- Company
has good consistent profit growth of 51.28% over 5 Year
- Company has a good return on equity (ROE) track
record : 3Years ROE 33.62%
- Company has been maintaining a healthy dividend
payout 23.01%
- Credit rating of the company reaffirmed by ICRA
on 29.2.2016 : Long Term Rating as ICRA A (Stable), Short Term Rating ICRA
A1
- Company Shares trading at a very attractive
valuation with limited downside risk
- Company reducing debt. From FY 14-15 to FY 15-16 ( In Sept)
- Book Value of the Company is Rs 80.21
Future Prospectus
& Strength
In
line with its stated expansion in its Kosamba Plant, Gujarat, the additional
capacity would reaped in FY17 and boost its revenue. Further, its ribbon plant
which has already received international accreditation would witness substantial
order during Christmas season and other important international occasion which
will improve its topline and bottom line in FY 17. Soft raw material prices,
increase in revenue due to expansion plant and management’s hand on approach in
business and client relationship coupled with its strong financial standing (
debt-equity at 0.18X, enviable margin at 30% and ROCE and ROE at 28%and 33%
respectively) and improved product mix make it a candidate for re-rating.
Conclusion:
- Introduction of new product and design to cater its existing and new customer internationally and increased demand of company’s product in the US market cemented company reputation across the world as producer and vendor of value added textiles.
- Good Valuation and investor friendly management
- Least Leveraged company
- Largest Exporter of Christmas ribbons and made up product in India
- A Safe bet for long term investors with a price target of 475-525 in 12-18 month.
