India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

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Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Equity Bottom-Up

<ul>
<li>Despite headwinds in the textile sector, GHCL Textiles recorded a 17.5% YoY revenue growth and margin 9.5% in Q2FY25.</li>
<li>Adding 25,000 spindles to augment production capacity and broaden the product basket, strategically targeting both domestic and international markets.</li>
<li>Targeting Rs. 2200-2300 Cr of topline and 18-20% of EBITDA Margin in 3-4 years.</li>
</ul>


Despite headwinds in the textile sector, GHCL Textiles recorded a 17.5% YoY revenue growth and margin 9.5% in Q2FY25.
Adding 25,000 spindles to augment production capacity and broaden the product basket, strategically targeting both domestic and international markets.
Targeting Rs. 2200-2300 Cr of topline and 18-20% of EBITDA Margin in 3-4 years.


<ul>
<li>Rs. 1,000 crores allocated for growth, with Rs. 350 crores deployed. 25,000 spindles added by May 2025.</li>
<li>Shift towards value-added products, including knitting, weaving, and dyed fabrics, with plans to double revenue in 3-5 years.</li>
<li>Despite expansion and potential opportunities, capacity constraints and global demand shifts temper expectations in the short term.</li>
</ul>


Rs. 1,000 crores allocated for growth, with Rs. 350 crores deployed. 25,000 spindles added by May 2025.
Shift towards value-added products, including knitting, weaving, and dyed fabrics, with plans to double revenue in 3-5 years.
Despite expansion and potential opportunities, capacity constraints and global demand shifts temper expectations in the short term.


<ul>
<li>Company recently demerged from <a href="https://www.smartkarma.com/entities/ghcl-ltd" target="_blank" data-smartkarma-citation="entities:12239:1" rel="noopener">Ghcl Ltd (GHCL IN)</a> and guiding for 30% revenue growth and double margins from here onwards with cotton prices being stable.</li>
<li>A Debt Free Textile company available at 0.56x Price to Book with growth plan in progress and adding Value added products in its portfolio.</li>
<li>Due to Forced selling from DII, FII company remained undervalued, now with changing margin profile, the Company will be available at a cheap valuation compared to peers.</li>
</ul>


Company recently demerged from Ghcl Ltd (GHCL IN) and guiding for 30% revenue growth and double margins from here onwards with cotton prices being stable.
A Debt Free Textile company available at 0.56x Price to Book with growth plan in progress and adding Value added products in its portfolio.
Due to Forced selling from DII, FII company remained undervalued, now with changing margin profile, the Company will be available at a cheap valuation compared to peers.


GHCL Textile: The Undervalued & Turnaround Play

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ghcl-textiles-ltd" target="_blank" data-smartkarma-citation="entities:41303:1" rel="noopener">GHCL Textiles (GHCLTEXT IN)</a>  Aiming 25-30% revenue growth along with 15-20% average margins significantly increase the profitability of the company.</li>
<li>Entering into value-added products like Functional fabrics and setting up their own manufacturing plant for fabric.</li>
<li>Management Guidance on yarn prices, capex and debt profile of the company.</li>
</ul>



GHCL Textiles (GHCLTEXT IN)  Aiming 25-30% revenue growth along with 15-20% average margins significantly increase the profitability of the company.
Entering into value-added products like Functional fabrics and setting up their own manufacturing plant for fabric.
Management Guidance on yarn prices, capex and debt profile of the company.


India

GHCL Textiles Limited manufactures home textile products. The Company produces cotton and synthetic ring spun, vortex, and open end yarns. GHCL Textiles serves customers worldwide.

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GHCL Textiles (GHCLTEXT IN)

GHCL Textile's Q2 FY25 Update

GHCL Textiles defies industry challenges with strong revenue growth and margin in Q2FY25, plans to expand production capacity and target higher...

Sudarshan Bhandari

GHCL Textile Q1 FY25 Update

Funds allocated for growth in textile sector, focusing on value-added products and capacity expansion, but short-term expectations tempered by...

Sudarshan Bhandari

GHCL Textile: The Undervalued & Turnaround Play

Recently demerged textile company expecting 30% revenue growth and 2x margins, offering value opportunity for long term investors.

Sudarshan Bhandari

GHCL Textile Q4 FY24 Update

GHCL Textiles aims for 25-30% revenue growth and 15-20% margins by focusing on value-added products and expanding manufacturing capabilities.

Sudarshan Bhandari

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

GHCL Textile's Q2 FY25 Update

​GHCL Textiles defies industry challenges with strong revenue growth and margin in Q2FY25, plans to expand production capacity and target higher...

Sudarshan Bhandari

GHCL Textile Q1 FY25 Update

​Funds allocated for growth in textile sector, focusing on value-added products and capacity expansion, but short-term expectations tempered by...

Sudarshan Bhandari

GHCL Textile: The Undervalued & Turnaround Play

​Recently demerged textile company expecting 30% revenue growth and 2x margins, offering value opportunity for long term investors.

Sudarshan Bhandari

GHCL Textile Q4 FY24 Update

​GHCL Textiles aims for 25-30% revenue growth and 15-20% margins by focusing on value-added products and expanding manufacturing capabilities.

Sudarshan Bhandari

GHCL Textiles defies industry challenges with strong revenue growth and margin in Q2FY25, plans to expand production capacity and target higher...

Funds allocated for growth in textile sector, focusing on value-added products and capacity expansion, but short-term expectations tempered by...

Recently demerged textile company expecting 30% revenue growth and 2x margins, offering value opportunity for long term investors.

GHCL Textiles aims for 25-30% revenue growth and 15-20% margins by focusing on value-added products and expanding manufacturing capabilities.