Here is my notes on Kitex Garment. I am investor in the script since @ 4 years.
KITEX GARMENTS
No investor concall, YoY poor performance but last three QoQ OPM improving, Telangana plant commissioning to be watched. Another Telangana plant construction started, price discounting the same news. Good time to add between 170 to 180. However, US market demand is key for demand. Not under the radar of brokerages and MF. @ 1% FII holding. Current garment capacity 4.32L Pieces, after Kakatiya and Sitarampur addition (Next two years) production capacity will increase by 18L pieces. Thus total capacity will be 22.24 Lakhs pieces.
NO CHANGE IN PRICE AFTER 5 STATE ELECTION RESULT OF 12/23. @ 208. MARKET REACTED POSITIVELY BY 250 + NIFTY. BRS LOST POWER AND CONGRESS WILL BE FORMING GOVERNMENT. PRICE STARTED UPWARD TREJECTORY AFTER FORMATION OF CONGRESS GOVERMENT AND BETTER USA DATA NO FURTHER RISE IN INTRESET RATE FOR NEXT FEW QUATORS. (16.12.23 – 235)
6/8/24 update
Price up by 17% on account of Bangladesh disturbance which can trigger market demand for Kitex.
August 06, 2024 at 03:34 PM.
Sabu M.Jacob, Managing Director, Kitex Garment told businessline that 80 per cent of the US garment buyers have already shifted from China and this will be 100 per cent by 2025. The emerging situation augurs well for the Indian garment sector, but the need of the hour is to offer more productivity to meet overseas buyers’ requirements.
Kitex Garments hopes to gain from relocation of MNC retail brands from China
Bangladesh unrest a bonus boost to Indian garment industry as buyers there would look for options
Kitex Garments upcoming manufacturing facility in Telangana can offer a viable alternative. The first phase of the ₹3500 crore facilities will be ready by the year end and the second phase by December next year. This will enable the company to increase its production capacity to three times from 7 lakh pieces per day to 29 lakhs pieces per day, he said.
Q1/25 Result update
- Excellent results, price reacted by +19.8% – 286
- Growth primarily due to strong demand from existing customer
KEEP TRACK OF DEMAND AND NEW PLANT COMMISSION
19/08/24 Press release
Speaking to media about the emerging global apparel market scenario, Mr. Sabu M Jacob, Chairman & Managing Director of Kitex Garments Ltd, stated that;
The company’s capacity utilization is currently at its peak and the factory order position is fully booked up to June 2025. With the surge in demand and favorable global market conditions, Company expects to achieve its all-time high record over the last three decades in terms of turnover and profits.
SUMMARY OF PROCEEDINGS OF 32ND ANNUAL GENERAL MEETING – 30/9/24 AGM Presentation
Kitex Garments has achieved consistent growth over the years and is on track to achieve an all time high Turnover of INR 1,000 Crores in 2024-25
Kitex Apparel Parks Limited Warangal and Hyderabad Highlights
Total Capacity 10.68Lakh Pieces per day
Revenue – INR 5000 crores at full production
Changes in share holding pattern – Q on Q / Year before
• Promoters holdings – 56.66-56.66/56.66
• Promotors pledge – 0-0/0
• Promotors holding @10 years back – 54.25
• FII – 0.68-0.97/0.82
• DII & MF – 0-0/0
• Public – 42.52-42.38/42.67
• Big investor – Usha C P (not reputed)
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