#RajapalayamMills - Small-cap stock for 50% gains in short term & 2X in medium term.

CMP – 1219.10 (13/1/22)

Sectoral Tailwinds, Highly Undervalued, Capex, Breakout on Cards ...

(Must read🧵Thread for Investors !)

@caniravkaria Views Invited


#RajapalayamMills Limited is flagship mill of the Ramco Group’s Textile Division.

#TechnoFunda #ShareMarket #StockMarket #Investing #Trading

@Anshi_________ Views Invited.

Ramco Group Textile Division, produces a wide range of yarns from Cotton, Lenzing Modal & Tencel fibres to meet requirements of top class customers across the world.

Ramco Group Textile Division has 18 units across the country.

#TechnoFunda #StockMarket #Investing #Trading

Company is engaged in manufacture of cotton yarn & fabrics.

Its products include Ring Yarn, Compact Yarn, Eli-Twist Compact Yarn, TFO Doubled Yarn, Gassed Yarn, Slub and Multicount Yarn, Model/Tencel Yarn, OE Yarn and Organic Cotton Yarn.


Company exports its products to markets, such as Japan, Korea, China, Hong Kong, Malaysia, Indonesia, Thailand, Pakistan, Dubai, Bahrain and Italy.

#RajapalayamMills #TechnoFunda #StockMarket #Investing #Trading

@adarshforindia (Views Invited)

Manufacturing plants of the company are located in Tamil Nadu and Andhra Pradesh.

#RajapalayamMills #TechnoFunda #StockMarket #Investing #Trading

Company is also engaged in generation of electricity from its windmills for its captive requirements.

Its wind mills are located in areas, such as Dhanakkarkulam, Irukkanthurai and Uthumalai in Tamilnadu.

#RajapalayamMills #TechnoFunda #StockMarket #Investing #Trading

Yarn market in India has bounced back after 2 yrs of slowdown. Due to trade war between US & China and diversion of sourcing textile products by top global brands from China to India demand for textile products including yarn manufactured in India is boosted.

~ Company AR

Sales Figures in FY 20-21 vs FY 19-20

Mercerized Yarn – 302 Tonnes vs 154 Tonnes
Modal / Tencel Yarn – 329 Tonnes vs 176 Tonnes
Dyed Yarn – 133 Tonnes vs 12 Tonnes

Source : Company AR

#RajapalayamMills #TechnoFunda #StockMarket #Investing #Trading

Company is taking various steps to expand its market presence both in domestic and international markets and hope to achieve higher volume of sales in value added yarns in the forthcoming years.

#RajapalayamMills #TechnoFunda #StockMarket #Investing #Trading

As part of modernization programme, company replaced Open End Spinning (OE) Machines with fully automatic OE Machines at a cost of Rs 45 Crores.

Company also invested Rs. 59 Crores in last 2 years for modernizing other textile machinery & equipment.


In order to take advantage of current higher demand for yarn, the Company has also proposed to expand the spinning capacity by adding 18,144 spindles in Rajapalayam by utilizing the existing building space.

#RajapalayamMills #TechnoFunda #StockMarket #Investing #Trading

The Company is also planning to expand the weaving capacity by adding 30 Looms, which will increase the existing looms capacity from 122 Looms to 152 Looms.

#RajapalayamMills #TechnoFunda #StockMarket #Investing #Trading

Total outlay for all the above capex proposals is Rs 180 Crores, which will be funded from proceeds of Rights Issue, internal accruals and term loan from Banks.

#RajapalayamMills #TechnoFunda #StockMarket #Investing #Trading

Source : Company AR

Posted excellent results in Sept Qtr.

Net Sales – 171 Crs vs 135 Crs (QoQ) vs 107 Crs (YoY)
Net Profit – 12 Cr vs 5 Crs (QoQ) vs -8 Crs (YoY)

Qtr Results, P&L, Balance Sheet & Cash Flow attached

@nid_rockz & @caniravkaria Views Plz.

#RajapalayamMills #TechnoFunda

📈Technical Analysis📈

✅Stock is already in strong momentum

✅Breakout on cards

✅20 SMA crossed 50 SMA from below (Bullish)

✅20 SMA crossed 100 SMA from below (Bullish)

✅Stock is becoming relatively stronger than Nifty.

#RajapalayamMills #TechnoFunda #StockMarket

Stock is trading above all major SMA and EMA ...

10, 20, 30, 50, 100 and 200.

🌟Super Bullish Sign🌟

@Anshi_________ (Views Invited)

#RajapalayamMills #TechnoFunda #StockMarket #Investing #Trading

🌟Main Investment Rational🌟

Company holds shares of group companies – Ramco Cements, Ramco Systems & Ramco Industries

Current market value of those investments = Rs. 4302/Share

Market Price of #RajapalayamMills should be at least 1700 (applying 60% holding discount)

✅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.

#RajapalayamMills #TechnoFunda #StockMarket #Investing #Trading

Market Cap – 1049.10 Crs
Equity – 8.6 Crs
Promoter Holding – 55.12%
Promoter’s Pledge – 0%

Retail Holding – 21.59% (~ 18 lakh shares)
Out of this ~ 13.52% held by 21 people (~11.63 lakh)

Technically less than 7 lakh shares is floating stock

#RajapalayamMills #TechnoFunda

Noted long-term investor Govind Parikh hold’s 5.02% stake in the company. He recently bough 60,953 shares at avg price of 930 in December 2021

In September 2021, Promoter Smt. P.V. Nirmala Raju bought 25,130 shares in September 2021 at avg price of 1009


Word of Caution

❎Low Volumes
❎Company has low interest coverage ratio
❎Poor sales growth over past five years
❎Low return on equity for last 3 years

#RajapalayamMills #TechnoFunda #StockMarket #Investing #Trading

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

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Techno Funda Investing

Techno Funda Investing Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @TechnoFunda6

11 Jan
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.

#TechnoFunda #Investing #Trading
Read 20 tweets
10 Jan
Thread 🧵on Best Textile Sector Stocks in India ...

Why Invest in Textile ❓

Charts of Best Stocks for Trading / Investing (Based on Set Criteria)

Charts & TA Courtesy : @YTA_School

(Must Read for Traders & Investors)

@Anshi_________ @AmitabhJha3 (Views Invited) 🙏🙏🙏
Covid-19 has altered global textile & apparel (T&A) supply chain with several brands preferring more than one sourcing destination.

Further, US-China trade war & imposition of additional duties on Chinese T&A imports have forced US-based importers to search for alternatives.
In December, US signed a law that bans imports from China's Xinjiang region over concerns about forced labour. As Xinjiang constitutes ~ 20 per cent of global cotton market, supply re-adjustment on account of this ban has led to more demand for Indian cotton and cotton yarn.
Read 28 tweets
5 Jan
#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


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

#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 🙏
Read 19 tweets
22 Dec 21
#ValiantOrganics - A Fundamentally Sound Stock which can give 2X Returns in medium to long term.

CMP – 995.40 (22/12/2021)

🌟Special Inputs from @rohanshah619🌟

(Must read 🧵Thread for Investors !)

#TechnoFunda + #HarmonicTrading

Views Invited 🙏🙏🙏

#ValiantOrganics is engaged in manufacturing and marketing of specialty chemicals.

Company manufactures chemicals for a variety of industries such as speciality and agro chemicals, cosmetics, pharmaceuticals.

#TechnoFunda #StockMarket #Investing #Trading

Company’s Chairman Chandrakant Gogri is the founder of Aarti Industries and has a good amount of experience in this segment.

#ValiantOrganics #TechnoFunda #StockMarket #Investing #Trading
Read 16 tweets
11 Dec 21
Thread 🧵explaining #MarketCycle

(Accumulation - Advancing - Distribution & Decline Phase)

Basics of #TechnicalAnalysis

(Must read for #TA learners)

🙏Like & RT to spread learning with all 🙏

@rohanshah619 / @PAlearner / @Puretechnicals9

#TechnicalAnalysis #StockMarket

✅Market Cycle refers to period between two latest highs or lows in case of any security (stock, bonds, commodity, currency, etc).

✅It refers to the phases in which price of any security moves.

#MarketCycle #StagesofMarket #TechnoFunda #StockMarket

Understanding stages of market & how price moves during these stages helps a trader to identify new trading opportunities & lower their trading risk.

Market cycles goes through 4 stages -


Read 9 tweets
9 Dec 21
#KKCL - A Mid-Cap Stock which can give 2X Returns in medium to long term.

CMP – 1283.15 (9/12/2021)

(Must read🧵Thread for those looking for Long Term Wealth Creation)

@rohanshah619 @caniravkaria Views Invited 🙏🙏🙏

Kewal Kiran Clothing Limited (#KKCL) is one of India’s largest branded apparel manufacturers, engaged in the designing, manufacturing and marketing of branded jeans and a wide range of western wear.

#TechnoFunda #StockMarket #Investing #Trading

With in-house fashion brands Killer, Integriti, LawmanPg3, Easies, K-Lounge and Addictions, company has created a niche segment for apparel and accessory lovers across India.

#KKCL #TechnoFunda #StockMarket #Investing #Trading
Read 11 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!


0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy


3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!