Upgrading Sumeet Ind: TP Rs 120.
_Interview of promoter_
In Q2CFY , its revenue went up 20.4 percent by YoY to Rs 347.17 cr and profit was up 228 percent YoY to Rs 15.62 cr. Promoters who had sold around 5 percent stake earlier this year are expected to buy that back before December. Volume is not increasing very fast as it has not added any new capacity. *Plant is running at 120 percent.* It is increasing quality, increasing production and increasing value added products. Hence the profit is increasing. Standalone profit last year was Rs 28 cr and in H1CFY, this is Rs 30 cr.... in half year we earned profit equal to last year. *Profit in CFY is expected to be around Rs 70 cr* against Rs 28 cr last year. _In the next one or two years, this can touch up to Rs 100 cr._ Planning to add some capacity. It has low debt of about Rs 150 cr as it has not expanded in since 2012. It plans to manage funds and in the next 1-2 years double the production capacity.
OUR TAKE: Sumeet has emerged as extremely efficient mfr of yarns , reflecting directly in sharply enhanced margins
_Stock can be 120 in next 15-18 months_
_Interview of promoter_
In Q2CFY , its revenue went up 20.4 percent by YoY to Rs 347.17 cr and profit was up 228 percent YoY to Rs 15.62 cr. Promoters who had sold around 5 percent stake earlier this year are expected to buy that back before December. Volume is not increasing very fast as it has not added any new capacity. *Plant is running at 120 percent.* It is increasing quality, increasing production and increasing value added products. Hence the profit is increasing. Standalone profit last year was Rs 28 cr and in H1CFY, this is Rs 30 cr.... in half year we earned profit equal to last year. *Profit in CFY is expected to be around Rs 70 cr* against Rs 28 cr last year. _In the next one or two years, this can touch up to Rs 100 cr._ Planning to add some capacity. It has low debt of about Rs 150 cr as it has not expanded in since 2012. It plans to manage funds and in the next 1-2 years double the production capacity.
OUR TAKE: Sumeet has emerged as extremely efficient mfr of yarns , reflecting directly in sharply enhanced margins
_Stock can be 120 in next 15-18 months_
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