Sportking India Ltd Multibagger 2022 Analysis
This article we can explore the possibility of Sportking India Ltd as a multibagger 2022 Stock based on Value Investing principles.
| Website | https://sportking.co.in |
| CMP | Rs. 1150.00 |
About Sportking India Ltd
Established in 1977 under the leadership of Mr. Jagdish Chandar Avasthi, Sportking has emerged as India’s leading vertically integrated textile conglomerate. In more than four decades of its existence, Sportking has relentlessly continued its journey on the path of fast paced growth under the benevolent vision of Mr. Raj Avasthi: Chairman and dynamic management of Mr. Munish Avasthi: Managing Director creating several benchmarks in its varied ventures of Yarns, Fabrics, Garments and Retail Businesses.
Sportking today owns seven state-of-the-art manufacturing facilities in India spread across the states of Punjab and Himachal Pradesh which are equipped with the latest machinery, producing yarns and garments that are a benchmark in quality, range and innovation in the domestic as well as International markets. Besides manufacturing facilities, Sportking also owns over 100 Retail Garment Stores spread across many Indian states.
With Annual Turnover of over INR 1500 Cr (US$ 210Million), more than US$ 100 Million revenue is generated from exports to more than 30 countries all over the globe.
At Sportking, they are excited about the opportunity of changing fashion trends that regional and global markets present. Company believe that organizations with a definitive technological advantage and scale are best positioned to address the increasing demand from newer markets. The company have hence focused the strategy on product innovation, capacity leadership and attaining cost efficiencies.
Sportking proactively invested in upgrading technologies to keep pace with changing preference for fabric construction, fiber selection and processing needs. They are developing newer blends and shades in sync with evolving design trends. The result is that the company are now a one stop textile solutions provider servicing varied customer needs. Company endeavor has always been to bring in best-in-class technologies, available globally. This has helped to improve the product quality and attain higher productivity. Besides, company plant efficiency levels have climbed significantly, ensuring higher return on capital employed. This has been achieved due to streamlined processes, utilization of latest machineries and an efficient workforce. As a result, company have sustained the profitability by focusing on operational efficiency and capacity enhancement. Main aim is to penetrate deeper into international markets and strengthen our identity across the globe. Sportking quest for enhancing stakeholder value will drive expansion into emerging and hi-tech segments across the textile value chain. Their long-term focus on product development and manufacturing efficiencies provides a competitive advantage, and places us uniquely for the next level of growth.
With presence in more than 30 countries across the globe including Bangladesh, Korea, Morocco, Egypt, Kenya, Brazil, Portugal, Peru, Czech Republic, Nigeria, Ethiopia, China, Ukraine, Chile, Taiwan, USA, Canada, Brazil, Dominican Republic, Spain, Poland, South Africa, Mauritius, Madagascar, Vietnam, Thailand, Singapore, Myanmar, Japan, Colombia, Argentina, Cameroon, Sri Lanka, Philippines and Dubai, Sportking is representing India on a world stage with exports worth more than US$ 100 million.
With presence in more than 30 countries across the globe including Bangladesh, Korea, Morocco, Egypt, Kenya, Brazil, Portugal, Peru, Czech Republic, Nigeria, Ethiopia, China, Ukraine, Chile, Taiwan, USA, Canada, Brazil, Dominican Republic, Spain, Poland, South Africa, Mauritius, Madagascar, Vietnam, Thailand, Singapore, Myanmar, Japan, Colombia, Argentina, Cameroon, Sri Lanka, Philippines and Dubai, Sportking is representing India on a world stage with exports worth more than US$ 100 million.
Products & Services
- Yarn Business
- Textile Processing
- Knitted Fabric
- Garments
- Retail Network
- Retail Store
Profit & loss
Warren Buffett Checklist
| Factor | Value |
| Economic moat | Moderate |
| Growth | Moderate |
| Valuation | Good |
| Debt | Moderate |
| Integrity | Good |
Positives
- Company is trading at PE 4 Levels which is very attractive
- Company has reduced debt & Promoter holding increased
- The moderate high debt level is covered with High Interest Coverage ratio
- The Trailing year shows 50% increase in Revenue & 300% Increase in Profits
Negatives
- Stock is trading at 3X book value
- Company have moderate high debt levels
- The company has delivered a poor sales growth of 4.76% over past five years.
- Company might be capitalizing the interest cost
Summary
As per the Expansion & Value Investing grounds the company have Multibagger Potential.
DISCLAIMER
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