The bullish outlook on Rajasthan Spinning and Weaving Mills has seen a surge in volumes at the counter. The trading volume at the counter has doubled over the past week, while it has gone up three times over the past month. | |
| However, the advance in stock price has not reflected the growing interest, as the stock has only appreciated 2 per cent over the last week. Analysts feel that the stock looks cheap at the current levels, given the bullish outlook on the company and its attractive valuations. |
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| The stock trades at a trailing 12-month price-to-earnings ratio of 12.6 times. The Rs 730-crore company, a part of the LNG Bhilwara Group, is an integrated textile player. It is the largest manufacturer and exporter of synthetic spun yarn and a leading supplier of fabrics, under the flagship brand "Mayur" suitings. |
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| The company has earmarked a total investment of Rs 400 crore for modernisation and enhancement of spindleage, a 20-million metre denim project, a 48 MW captive power plant and increase of garment capacity to 13,000 per day. |
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| The companies' profitability is expe cted to improve due to better realisations on account of high-end products and substantial savings in interest and power costs due to loans availed under TUFs and captive power plant respectively. |
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