Sutlej Textile (Dolly Khanna mention in Annual Report) High ROE cheap stock

Hi Guys,
I was going through list of textile stocks and came across Sutlej Textile , it has great financials with debt to equity of 1.07 , Avg 3 ,5 year ROE of 25+% trading at PE of 6. with dividend yield 2.2%

After going through AGM mom.

https://corporates.bseindia.com/xml...BF782C_27E9_4D74_9B60_F8F2864A3CBE_082129.pdf

I found Dolly Khanna name in it and Mr MP jain attended AGM on behalf of Dolly Khanna.

This stock represent GOOD margin of safety and is backed by good fundamental and investor.
Disclosure I bought few 100 sutlej today , happy investing

 

thankyou @Swapnil for the information. Sutlej looks good for its fast growth.only concern about debt levels which is 597 cr and market cap 752cr.

 

Very good investigation by @Swapnil Keep it up

 

agree with you @w4wealth on debt , but the way they are reducing debt from last 4 years gives them some credit , also interest coverage is above 3 , that gives some relief to buyer.

 

yes looks fair . @Swapnil

 

Yes it is some what better company.Biggest reason for this good performance is comparitive cheap power in J& K where one of its unit is present,this type of spg mills are power intensive,so resulting in better performance.More over cheap labour cost and govt incentives are also helpful.This is KK Birla permoted company ,so need not to worry much about debt.Dolly khana entered some of textile stock very early at very low prices and many of them has atleast tripled in last two years.I will appreciate that she entered many good companies very cheap and very early across many sectors as many stocks were stagnating at poor valuations after 2008 crash.But I dont see now market having many such sitting ducks , as valuations of the type of stocks she plays are stretched due to small and mid cap mania and I expect reduction in such frequent good news in future .If she could still do it for next 5 years ,that will show her as genius and will enter in hall of fame among successful investers,as now money making is no more easy and no more one way street.Small investers like us can learn a lot from style of Dolly Khanna ,who always balances quality and valuations but I am always confused with brave Pronju style . But I respect both investment Gurus, as Success has no substitute,failure has no excuse.

 

450 TO 750+ sutlej textile happy investing

Book some gains here and let your partial holding run.

 

That's right! I am looking to have some profit from this stock in short term period.