Bhilwara-based textile manufacturer Sangam India is looking forward to achieving a topline growth of 10 per cent in FY16 on the back of its growing denim business.
The company expects exports to contribute 30 per cent to the company's revenue this year. Sangam's long-term debt is at Rs 250 crores and it anticipates the debt-equity ratio to improve in the near future with the promoters planning to up their stake in the company to 51 per cent.
Research firm CRISIL views Sangam India as incrementally positive company and has maintained a fundamental grade of 3/5. It has raised EPS estimates and fair value and FY16 and FY17 EPS estimates from Rs 19.3 and Rs 23.7 to Rs 21.2 and Rs 25.4 on the back of higher EBITDA margin estimates. It has lowered cost of equity from 17.8 percent to 17.4 percent due to improved stock liquidity. As a result, CRISIL’s fair value has increased from Rs 115 per share to Rs 220.
www.sangamgroup.com
