This article we can explore the possibility of Filatex India Ltd as a multibagger 2022 Stock based on Value Investing principles.
| Website | https://filatex.com |
| CMP | Rs. 126.00 |
About Filatex India Ltd
Filatex India Limited is today among the country’s leading manufacturers of Polyester Filament Yarn. With an entry into manufacturing in 1994 with monofilament yarn, today the company fulfils emerging garment needs of millions and adds extra mileage to India’s developing textile industry. Company manufacture polyester and polypropylene multifilament yarn and polyester chips at our two production facilities. One at Dadra & Nagar Haveli and the second one at Dahej, equipped with state-of-the-art modern German machines.
The consistent and premium quality of products has opened a plethora of opportunities for addressing global demand.
The Bhageria family, spent around two decades to become prominent distributors of synthetic yarns. Keen on growing their business, the young brother sifted through a plethora of thoughts and ideas about business opportunities and finally a vision emerged.
A humble beginning was made by setting up 500 Tons Per Annum of monofilament yarns in Noida in 1994. Another plant of 6000 Tons Per Annum was set up in Dadra & Nagar haveli in 1996 for manufacturing polyester multifilament yarns. The ball was set rolling and the capacity increased every alternate year till 2008 when the unit was producing 46000 Tons Per Annum of yarns in different types of Polyester POY, DTY & FDY in all colours and shades, Polypropylene multi-filament yarn and Narrow woven fabrics.
All the products were made from chips whereas the market was shifting from “Chips to Yarn” to “Melt to Yarn”. So, the next leap was setting up an integrated facility with Continuous Polymerization. A world-class plant in terms of technology and capacity of 600 Tons Per Day along with 260 Tons Per Day POY was set up at Dahej in 2012. In 2016, a capacity of 105 Tons Per Day of Semi Dull FDY and 200 Tons Per Day of Drawn Textured Yarn was added. To complete the product basket, a new stream for bright polyester of 300 Tons Per Day capacity was added which caters to 190 Tons of bright FDY, 25 Tons of bright POY and 85 Tons of bright chips.
Company promoters with over four decades of experience in marketing and manufacturing synthetic filament yarns give us a strong competitive edge. Company is also closely associated with consumers of specialty filament yarns that allows to manufacture new and innovative products as per the individual needs. Company have marketing offices in all the major markets viz. Delhi, Mumbai and Surat. While, the major customers and exports are directly handled by our marketing offices, small customers are catered through a network of dealers spread throughout the country. All these marketing offices are headed by highly qualified marketing personnel having rich experience in the Industry.
Products & Services
- PET Chips (Textile Grade)
- Partially Oriented Yarn (POY)
- Full Drawn Yarn (FDY)
- Drawn Textured Yarn (DTY)
- Air Textured Yarn (ATY)
- Polypropylene Yarn (PPY)
- Narrow Woven Fabrics (NWF)
Profit & loss
Warren Buffett Checklist
| Factor | Value |
| Economic moat | Moderate |
| Growth | Moderate |
| Valuation | Moderate |
| Debt | Moderate |
| Integrity | Good |
Positives
- Company is undergoing Capacity Expansion
- Promoter increased 7% holdings
- CAGR 30% Growth visible for past 5 years
Negatives
- Debt is slightly high due to the Inorganic Expansions
- Company is into Deep Lockdown Impact segment
Summary
As per the Expansion & Value Investing grounds the company have Multibagger Potential.
DISCLAIMER
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