Deepak Spinners - Can it be a new RSWM ?

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by Vivek, Aug 4, 2015.

  1. Vivek

    Vivek New Member

    Aug 4, 2015
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    Hello All,

    I have studied about Deepak Spinners Ltd CMP Rs. 67 and it seems to be a good bet at cmp at PE of 5. Grossly undervalued when compared to its peers.
    The company has recently completed its expansion process and has given good growth Y-o-Y. Looking at the growth in textile sector and market fancy for the stocks in the current scenario, Deepak spinners at cash EPS of Rs. 32 available at twice the cash profit should outperform .
    Total turnover for FY 2014-15 was Rs. 434 crores and market capitalization is only Rs. 47 crores , trading at almost 1/10th of sales.
    Given the rise in RSWM, Nandan Denim , Ambika Cotton ,Lambodhara, Indo count ,Indo rama synthetic , Welspun syntax and other textile stocks in both the sector sector spinning - Synthetic blended/Cotton Blended, even this stock should outperform.
    I would like your opinion as well
    Last edited: Aug 4, 2015
  2. dineshkapoor27

    dineshkapoor27 Active Member

    May 19, 2015
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    Looks like a good bet to me. Textiles and spinning stocks are on a roll these days. With this mouth watering valuations, I think it can give really good returns in short to medium term.