After #Kitex Now comes #VishalFabrics ...

A Small-cap stock that can become 2X in medium term.

CMP – 107.40 (11/1/2022)

Sectoral Tailwinds, Promoters Buying, Breakout ...

(Must read 🧵Thread for Investors !)

@saditya10p Views Invited 🙏

#TechnoFunda #ShareMarket Image

A flagship company of the Chiripal Group, #VishalFabrics Limited is a leading denim manufacturer.

Company has been promoted by Shri Brijmohan Chiripal who has nearly three decades of experience in the fabric and yarn business and marketing of knitted apparels.


Chiripal Group, is a leading manufacturer and exporter of Textile and BOPP Film products in India with a group turnover of more than Rs. 6,000+ crore.

Other Listed companies of the group - #NandanDenim Ltd. and CIL Nova Petrochemicals Ltd.

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With over 35 years of experience, #VishalFabrics has state-of-the-art manufacturing facility, with a capacity of over 100 MMPA, to deliver premium fabrics that match global standards.

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In past, in Sept 2020, #VishalFabrics was fined Rs. 1 Crore & was also issued closure notice by Gujarat Pollution Control Board.

Stock collapsed from 245 to below 40 levels in 3 months

🌟(Significant Risk Factor. Never allocate more than 5 % of portfolio to such stocks)🌟

Client List of #VishalFabrics includes - H&M, Zara, The Roadster Life & Co., GAS, Emporio Armani, Lee, Wrangler, Killer, Calvin Klein, Levi's, Diesel, Tommy Hilfiger, Being Human, etc.

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Company's manufacturing facilities are located at Dholi Integrated Spinning Park, in close proximity to cotton growing belt in Gujarat.

#VishalFabrics #TechnoFnda #Investing #Trading

In order to backward integrate its operations, #VishalFabrics established entities in spinning, dying, weaving and processing, which reduces company's costs and helps in higher profitability against its peers.

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A key ➕ factor of this company is that it has long standing relations with clients due to which it holds a strong market position.

#VishalFabrics #TechnoFunda #Investing #Trading

Sept Quarter Results of #VishalFabrics were good

Q2FY22 vs Q1FY22 vs Q2FY21

Revenue👉 400 Cr vs 295.02 Cr vs 219.79 Cr

PBT 👉 26.74 Cr vs 13.89 Cr vs 2.91 Cr

PAT 👉 19.77 Cr vs 10.24 Cr Cr vs 2.48 Cr

EPS 👉 3.00 vs 1.55 vs 0.57

@nid_rockz Views Invited 🙏

#TechnoFunda Image

Promoters hold 69.75 %
FII's hold 5.64 %

Retail investors hold around 13.5 % ~ 90 lakh shares.

Promoter pledge has reduced in last few quarters.

In August 2021, promoters increased their stake by 2.20 %. Buying was done at an average price of 115 - 125.

#VishalFabrics Image

Mcap Full (Cr.) - 734.12
Mcap FF (Cr.) - 220.24
Book Value - Rs. 40.17

ROCE - 10.1 %
ROE - 7.06 %

ROCE & ROE are low. But can improve with overall improvement in textile sector.

#VishalFabrics #TechnoFunda

🌟Investment Rational🌟

India currently boasts denim manufacturing capacity of approx 1,500 MMPA. Industry has been growing at a CAGR of 9% over the last 5 years and expect more growth in coming years.

Source : Company AR & Website.

@caniravkaria @saditya10p

✅Favorable government policies for #Textile Sector
✅Export promotion policies for Textiles Sector
✅100% FDI is allowed in Textile Sector under automatic route.
✅ PLI Scheme - Rs. 10,683 crore for 5 Years.

#VishalFabrics #TechnoFunda #ShareMarket #StockMarket

🌟#TechnicalAnalysis of #VishalFabrics🌟

Charts of Vishal Fabrics look promising...

Stock is trading above all short term SMA's.

Breakout with Very High Delivery & Traded Quantity Yesterday.

Weekly & Daily Chart Attached Below in Thread

#TechnoFunda #Trading #Investing

Weekly Chart of #VishalFabrics shows good momentum.

Double Bottom Neckline Acted as Support.

Falling Resistance Line became Support Line.

Resistance at Rs. 130.

Breakout can take stock to higher levels in medium term.

#TechnicalAnalysis Image

Daily Chart of #VishalFabrics shows Breakout from Symmetrical Triangle.

Resistance at Rs. 130.

Breakout can take stock to higher levels in medium term.

SL for Traders can be around 85.

#TechnicalAnalysis Image

#VishalFabrics Eyes Rs 2,000 cr Top-line in Next 2 Years

Source -…

#TechnoFunda #Investing #Trading

In case of such Small Cap Stocks with Past Problems, one cannot go for Long Term BUY & HOLD Approach

One needs to continuously TRACK & MONITOR developments related to Company

& Never Allocate Large Amount ( in % terms of your capital) to such stocks.

@caniravkaria Views

Disclaimer : This is not a stock recommendation on #Vishalabrics. 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!

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