Siyaram Silk Mills rises 4%

Siyaram Silk Mills is seeing some movement today on the back of its good show for Q1FY18. The stock price jumped up 4% to Rs.2405.40 and from there has now come down to Rs.2335 levels, just about in the green. Its 52-week high is at Rs.2449.

For owner of brands like J Hampstead, Oxemberg, Siyaram MSD, despite the challenging times in the textile sector, the company has remained pretty consistent in its performance. The company, for Q1FY18 posted a good show. On a 13% (YoY) rise in revenue, the net profit came in at Rs.10.35 crore, up 26%. Despite a 37% rise in raw material prices and 12% increase in overall expenses, its EBITDA rose 10% at Rs.33 crore but margins remains flat at 10.3%.

The company has only recently started retailing the luxury Italian brand for menswear, Cadini. The coming fiscal should tell us whether or not this JV will pay off well for the company.

The company’s total debt currently stands at around Rs.280 crore. On an equity of Rs.9.37 crore, EPS for Q1FY18 is at Rs.11 (FV of Rs.10).

The company, along with the results, also announced and for Board approval for stock split of 5:1 subject to shareholder approval. The company also plans to invest up to Rs 25 crore in Balkrishna Paper Mills.