Thread by @TechnoFunda6

#Kitex - A Small-cap stock that can give 2X Returns in medium term.

CMP – 220.05 (5/1/2022)

Sectoral Headwinds, Capex, Promoters Buying, Breakout, Relatively Stronger than Benchmark

(Must read🧵Thread for Investors !)

Thanks to @YTA_School for special Inputs

@caniravkaria

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Kitex Garments Limited, is reportedly the world's second largest infant clothing manufacturer.

Company’s vision is to become the No.1 infant apparel manufacturer in the world.

#TechnoFunda #Investing #Trading

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#Kitex has set growth target mission for 2025 to achieve a projected turnover of Rs. 2000+ crores by 2024-25.

While aiming the ambitious target the company is planning to invest Rs. 910 crores in six years.

Source - Company AR

@caniravkaria @nakulvibhor Views Invited 🙏

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#Kitex Garments specializes in knitted garments for infants, toddlers, boys & girls.

Company’s products - Body suits, Sleepsuits, Sleepwear, Rompers & Skirts, Tops & Dresses, Baby Quilts & Bedding, Burps, Bibs, Training Pants & Jackets, etc

#TechnoFunda #Investing #Trading

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Company exports its products to US & European markets.

Infant apparels made by #Kitex are available in Australia, Austria, Brazil, Canada, China, France, Germany, Liberia, India, Indonesia, Israel, Japan, Mexico, Poland, Saudi Arabia, Switzerland, UAE & USA

@FI_InvestIndia

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🌟Investment Rationale🌟

Indian textile industry is one of the largest in world with a large unmatched raw material base and manufacturing strength across the value chain.

India is the 2nd largest manufacturer and exporter of textiles and garments in the world, after China.

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U.S. fashion brands and retailers continue to reduce their “China exposure” in the year 2020.

See Data Below 👇

@nid_rockz @caniravkaria Views Invited 🙏

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Recently, US House of Representatives passed bill banning imports from China's Xinjiang made with forced labour.

Products mainly exported from here include textiles. This is structurally a big positive for Indian textile sector.

#Kitex #TechnoFunda

@MashraniVivek Views🙏

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Some of the key clients of #Kitex include names like - Gerber Childrenswear LLC, Carters, Buy-Buy Baby, Ross Stores, Amazon, Target, Sam’s Club, Oshkosh, Walmart, etc.

#TechnoFunda #Investing #Trading

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Market Cap – Rs. 1463.67 Cr
P/E – 20.90
Industry P/E – 25.36
Book Value – Rs. 110.08 per share

#Kitex #TechnoFunda #Investing #Trading

🔟

No. of Shares – 6.65 Cr
Promoters Holding – 55.67 (Sept 2021)

In last few weeks, promoters have been continuously buying shares for open market.

#Kitex #TechnoFunda #Investing #Trading

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Today #Kitex released its Quarterly Performance Statement.

Total revenue during December quarter stood at Rs. 205 Crores as against Rs. 121 Crores in the same quarter for the previous year and Rs. 178.09 Crores in the previous quarter.

Expect good results

@nid_rockz

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🌟Technical Analysis of #Kitex🌟

✅Huge volumes were seen on counter today. It was accompanies by higher delivery volumes as well.

✅RSI above 70.

✅MFI above 80.

✅Stock is Relatively Stronger than Benchmark.

@rohanshah619 & @chartmojo views invited. 🙏

Charts Ahead

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Monthly Chart shows that stock broke the 3 year consolidation in July 2021.

On Monthly Chart Next major Resistance around 390 & 530.

#Kitex #TechnoFunda #Investing #Trading

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Weekly Chart shows chances of breakout (which will be confirmed on Friday's Closing)

Relative Strength (RS) already has given a breakout on weekly chart, which according to @YTA_School is sign of 🚀in making.

@rohanshah619 views 🙏

#Kitex #TechnoFunda #Investing #Trading

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Daily Chart of #Kitex shows -

✅ Today breakout of Rising Resistance Line occurred.

✅ Horizontal Resistance Line Breakout Excepted Very Soon.

@Arpit1223 @charts_breakout Views Invited 🙏

#TechnoFunda #INvesting #Trading

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Recently Kitex Group & Telangana Government have signed a MoU to invest ₹2,400 crore to set up apparel facilities in the State.

#Kitex will set up two integrated fibre-to-apparel manufacturing clusters in Telangana, at Warangal & Rangareddy districts.

#TechnoFunda

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Only concerns –

Company has delivered a poor sales growth of -3.56% over past five years.

Company has a low return on equity of 13.22% for last 3 years.

#Kitex #TechnoFunda #Investing #Trading

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Disclaimer : This is not a stock recommendation on #Kitex Garments. Just a case study for educational purpose explaining #TechnoFunda!

Our team members may be personally invested in the stock hence their opinion may be biased.

Consult Financial Advisor before Investing!