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!!! W E L C O M E !!!
In INDIA, people generally relate to stock market as “EASY MONEY” or “SATTA BAZAAR”. For them it’s purely a GAME or matter of sheer LUCK and nothing more than that. But seldom do they know, by following certain PRINCIPLES and taking INFORMED decision, this same platform has the power to take them from rags to riches. No doubt, it has a certain amount of RISK attached to it. But every business or investment has it. What more, the Finance Ministry has already made the long term capital gain as TAX FREE whereas the short term capital gain is taxed at merely 10%. On the economic front, India’s GDP is growing and is expected to grow at scorching pace of more than 8%. Unfortunately, even today our market is being ruled and dominated by FIRANGI’s money. But I can see, the day is not far when our general PUBLIC will change its perception and start putting MOST of their savings in equities as an ** Investment **.
Remember, "K N O W L E D G E" and "P A T I E N C E" are the key to success.
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SAARTHI

Sensex (LIVE- Intraday)

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Friday, June 10, 2005

Shri Lakshmi Cotsyn - Rs.60.50

Incorporated in 1988 as Galaxy Indo Fab Ltd. and later renamed as Shrivatsa International ltd (SIL) is a leading manufacturer & processor of a wide range of fabrics like 100% cotton, polyester and blended fabrics. It is now expanding to manufacture embroidered fabrics, fusible interlining, defence & military related textiles and textile articles. Recently, the management has again changed the name of the company to Shri Lakshmi Cotsyn. Within a decade of its establishment SIL has tripled it manufacturing capacity from 6 million metres per day to 18 million metres per day. With the removal of the quota regime in USA, SIL with interests in weaving, dyeing, printing, embroidery, fusing, quiliting etc is set to gain in coming quarters. Given below is a brief description about its each unit.

Fabrics: SIL manufactures suiting & shirtings, dress materials, canvas, ripstop, twill/drill, gabardine, industrial and synthetic fabrics etc in 100% cotton and blended fabrics like PC & PV. Apart from supplying fabrics to various garment manufacturers to produce trousers, shirts and uniforms, SIL even exports directly to various countries.

Dyeing & Printing: The company has a most modern and sophisticated Processing & Dyeing unit specialising in Vat & Disperse dyes, producing 100% cotton, blended fabrics like PC & PV and other similar fabrics. It also has a Coating Plant to coat Polyurethane on fabrics and make them waterproof or water repellant. For printing, SIL has 12 colour Rotary Printing machines, which can even print camouflage fabric, dual shade fabric and any other type of printing as per specifications. Besides, it is equipped with a full-fledged computerized laboratory for testing the colour, shade and strength of fabrics.

Embroidery: This division is equipped with a Multi Needle Embroidery machine, from Switzerland which can embroider fabric upto 14 to 21 yards at one time. These high quality Embroidered Fabrics and Laces are marketed under the brand name of ‘Alisha Embroidery’.

Interlining & quilting: SIL manufactures woven interlining Fusible Interlining, Microdot Fusible Interlining, Powder Dot Coated Fabric, LDPE Coated Fabric, HDPE Coated Fabric, EVA Coated Fabric and sells under the brand name ‘Star Track’. Besides interlining, SIL produces readymade collars and belt rolls in different shapes and sizes. SIL can also boast of its Quilted products manufactured by a state of art fully computerised multi needle quilting machine imported from Switzerland and South Korea, which can quilt up to 130 inches wide fabric material with a padding of upto 40mm. All the quilted products, starting from Quilted mattress covers, Poly filled Quilts, Baby Quilts, Patch Work Quilts, Bath mats, Sleeping bags, Pillow covers, Cushion covers and Quilted jackets are marketed under the brand name of ‘Dream Flower’.

Defence & Technical Textiles: SIL is a reliable and established name in the Indian Defence Organisation and other Government purchases. It supplies to all Ordinance factories (Clothing) in India like the Ordinance Equipment Factory, Kanpur, Ordinance Clothing Factory, Shahajanpur,Avadi & Hazartpur etc. It supplies Polyurethane/Protective Coating fabric, Camouflage Fabric, Military Clothing, Army Clothing, Water Repellent Fabric, Fire Retardant Fabric, Body Armour, Nylon PU Coated Fabric, etc. for the Indian Military and Para Military forces, Railways and other organizations. SIL specializes in manufacturing bulletproof jacket with advanced technology using aramid fabric and uhmpe sheets to produce hard armour plate, which meets the requirement of NIJ, threat level 3.

To cash on the quota free boom and for its future growth, SIL is coming up with a wew project at Mallwan, Fatehpur (UP) to manufacture 20 million metres of Denim Fabric per annum, 12 million mtrs Wide-width Fabric per annum, 6 million mtrs Bottomweight Fabric per annum, 3000 MT Terry Towel fabric per annum, Yarn Processing 1200 MT per annum and 5 MW Co-generation Power Plant. This expansion will be funded through a right issue or private placement of equity for an amount not exceeding Rs.60 per share. Earlier, it dropped the idea to issue bonus shares and is now planning a stock split to Rs.1 from Rs.10 face value. Financially as well as fundamentally, SIL is very strong and may end FY05 (30 June) with Sales of Rs.290 cr. and NP of Rs.10 cr. leading to an EPS of Rs.10 on its current equity of Rs.10 cr. The scrip is currently discounted at a PE of just 6. Investors are recommended to buy with a price target of Rs.100 in 15 months.

Posted by RAJAT AGRAWAL / MUMBAI at Friday, June 10, 2005

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