Kitex Garments another Page industries?

Hi,
I wanted to write and update on kitex garments and wrote to admin to ask permission to start a temporary thread. Anyway as it is now initiated I would to update the folks in forum about recent new development and details of concall with management

1. Kitex garments – strong brand name, debt free by 2QFY16 and tie up with LAMAZE INTERNATIONAL

2. Tie up with Lamaze international marks transition from B2B to B2C Kitex USA LLC ( 50:50 ) JV between kitex garments and Kitex childrenwear has signed an exclusive brand licensing agreement with Lamaze International for the sale of infant wear in the US and Canada under the Lamaze brand. The tie up is valid till 31 December 2020

3. Debt free by FY2QFY16 – The management highlighted that it has converted its USD 10million cash into INR and will convert the balance by the end of 2Q. The proceeds will go towards becoming debt free by the end of 2QFY16.

KEY TAKEAWAYS

Kitex garments transition from a B2B business into a B2C business with strong room for higher mark ups in selling prices and higher profitability per unit. With huge scalability, strong return ratios and free cash generation I believe has huge possibilities of growth.

Kitex garments is also launching its own brand ( forgot name ) by 3QFY16

Kitex garments may also announce the merger with its unlisted entity may be during 2QFY16 results.

Disc : Invested and high conviction