Equity99
Acknit Ind (Buy)
CMP: ₹152.85
Target: ₹225-250
Incorporated in 1990, Acknit Industries Ltd formerly known as Acknit Knitting Ltd, is an ISO 9001 — 2008 public limited company. In a span of twenty six years of operations, it is now one of the largest manufacturers and exporters of industrial gloves and garments.
It has an equity base of just ₹3.04 crore that is supported by reserves of around ₹38.28 crore. It has a share book value of ₹135.93 and price to book value ratio is just 1.05x which is impressive.
The promoters hold 50.33% while the investing public holds 49.67 per cent stake in the company.
During Q1FY19, it posted 155.32 per cent higher PAT at ₹1.2 crore v/s ₹0.47 crore in Q1FY18 on sales of ₹34.33 crore fetching an EPS of ₹3.95.
It is regular dividend paying company and it has paid 15 per cent dividend for FY18.
Its 90 per cent productions are exported so it is beneficiary from falling rupee. Based on the above financial and performance parameters, the AIL share looks quite attractive at the current level. Investors can buy this stock with a stop loss of ₹110. On the upper side, it could zoom to ₹225-250 levels in the long term.