SR Industries

S R industires ( courtesy InvestmentGrowth)
CMP: 32.50

S R INDUSTRIES is a chandigarh based company engaged in manufacture if terry towels.

POSITIVES

1)the company has undertaken expansion of its capacities which shall enhance to 4500 tonnes as against current 1000 tonnes.

2)the promoters of the company have recently acquired the stake of 24% held by PSIDC in the company

3) S R caters the entire requirement of BOMBAY DYEING.

4)MORE than 70% of the production is exported.

5)LOT of developments are taking place on export front with international companies placing strong orders.

6) FOR the year to end march 06 S R is projected to earn a turnover of about Rs 60 crs and net profit in range of Rs 8/9 crs.

The company has informed that the Company is presently engaged in the manufacture of terry towels at Derabassi, Distt. Patiala, Punjab with an annual capacity of 1500 MT.

The Company had pre-paid & cleared the dues of Industrial Development Bank of India. In the current financial year 2005-06, the Company has undertaken a major expansion programme to double its capacity to 3000 MT/annum and is likely to be commissioned by December 2005. The Company during the current year is expected to achieve a turnover of Rs 500 million and a cash profit of Rs 75 million.

The Private Promoters have bought the entire holding of 26.10 lac equity shares equivalent to 24.08% from its co-promoter / Joint Sector partner The Punjab State Industrial Development Corporation Ltd - a Government of Punjab Undertaking.

LONG TERM INVESTORS MUST ADD S R INDUSTRIES TO THEIR PORTFOLIO.
VALUE INVESTOR expects the company to grow at a rate of 40/50% in the coming years.