Thread by @SkCapitalist

#SiyaramSilkMills.
1. Siyaram Silk Mills is engaged in the business of Fabrics, Readymade Garments. It has a 5% branded fabrics market share. With revenue mix as 74% fabrics, 23% Garments. India comprises of 91.5% of revenue and the rest is from exports.

2. Brands owned by Siyram's are #J.Hampstead #Oxemberg #RoyalLinen #Siyarams #Unicode & #Cadini. They have well-known brands, diversified product line, strong distribution network, and presence across the textile value chain.

3. Best part about the company is they have an asset light model where they have outsourced 40% of it's manufacturing capacity so COVID will have relatively lesser impact. And currently all the manufacturing operations have been partially resumed as on 14th May 2020.

4. In 10 years Sales growth has been 13% CAGR, Profit growth is 25% CAGR, ROE is 18.4%, company has been continuously paying Dividends with rising dividend yields for the last 5 years.

5. Looking at the Shareholding, no promotor holdings are pledged, Promotor holding is @ 67.17% which is increased from 67% in last quarter.
#MutualFunds have been continuously increasing shareholding from 5% to 10.5% in 10 years.

6. Coming to the valuations, company has a strong liquidity profile with D/E Ratio @ 0.56 & Interest coverage ratio @ 3.76. P/B Value is 0.77, current P/E is 6.5 & historical P/E is 15. Company is trading at good discounts and one can enter for decent returns.

7. Company will have to invest more on their current brands and develop brand equity to improve profitability. All in all a decent company to hold & a relatively safe investment.
8. Account receivables are 393 Cr. Which is 90days of receivables which is ok.

Price Movement: Looking at the 10 years chart from 2010 to 2014 average price was 60-70 per share. Lifetime high is around 765, and current price is 130. Even if considering moderate increase in book value & assets over the years there is very limited downside.

Don't expect it to a #multibagger but it will give a fair returns over a year's timeframe.

unroll @threadreaderapp

After observation lots of people have brought #SiyaramSilkMills at 150 levels when it was featured on few #Business #Channels. Guys in my view you would have to wait for a year to make profits.
The company is good it's just that you have to be patient. @GicGupta @CA_ShivamSG

Please let me know if any other company is worth looking into will share my view sometime later.