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SEL Manufacturing Company – Avoid

Posted on: January 3rd, 2010 at 6:04 pm

Avoid Fresh Investments in this stock.

Current market price: 84.25, Long term target: 168.50. Book value: 166.63. P/E ratio: 2.47

SEL manufacturing company are the manufacturers, exporters of all types of knitted garments. They have in house spinning, knitting, dyeing, Finishing and Garmenting to meet the demand of price conscious and quality conscious market. They do all types of knitted products. Their basic Products include T-shirts, Polo shirt, Sweat shirt, Boxer shorts, Girls top etc. They make 30-35 thousand garments daily.

R S Saluja Group was established in the year 1969 for manufacturing ready-made garments for Domestic Market. Over the year’s company grown to a Pioneer position in exports, supplying yarns, fabrics and garments to major markets in Russia and Middle East. At present Company have FOUR state of the art garmenting units, one knitting unit and complete state of the art processing house and 50000 spindles cotton yarn spinning.

Strong competencies in product development, manufacturing and marketing, are complimented by their most significant advantage in textiles that they make their own yarns and fabrics to meet quality and shipment time of Garments. Their group-wide initiatives to achieve manufacturing and supply chain excellence, close collaboration with their suppliers, and sales offices at the customer’s doorstep all guarantee fast and flexible solutions.

With decades of expertise and excellence of meeting the discerning needs of niche client’s world wide, SEL Manufacturing Company Ltd. has laid out ambitious plans of product capacity augmentation to continue its proud contributions in the world of premium quality cotton – yarn, fabrics and garments.

Some of their prominent markets are:
Taiwan
Peru
Tunisia
Morocco
Brazil
Turkey
Bangladesh
Russia
China
Singapore
Malasiya
Sri Lanka
Colombia
Spain
Egypt
Switzerland
Germany
Syria
Greece
Gautemala
Hongkong
U.K.
Indonesia
Portugal
Italy
USA
Phillipines
Israel
Korea
Vietnam
Lebanon
Mauritius
Dubai
Argentina

World Class Knitted Fabrics
SEL Manufacturing Company Ltd is investing in high-end fabric manufacture in knitted fabrics. The Company has 75 knitting machines including Terrot Autostriper knitting machines capable of knitting jersey and auto-stripe patterns.
The Company is augmenting its Knitting capacity to 350 tones a month by procuring latest machines to meet the future requirements of garment capacity in-house
To meet the challenges of ever growing demand for quality processed fabrics they are setting up a additional 6 tones / day dyeing capacity with mercerizing, open width with Stenter, capable to produce best quality knitted fabric for our growing in house consumption.

Garmenting:
State of the art Garment manufacturing facilities at 4 strategic locations makes SEL Manufacturing Company Ltd backed up by own spinning and knitting makes us Customer’s choice who looks for Large supplies and short lead time. At present they are producing 600,000 pcs per month.

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237 Responses

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  1. siva Says:
    January 3rd, 2010
    Posted at: 7:23 pm

    Hi,

    Can i enter this stock tommorrow? what is the time-frame for stock-holding by which time it can hit your target price? any SL recommended for this stock?


  2. CB Says:
    January 3rd, 2010
    Posted at: 8:29 pm

    Hi siva, yes. holding period is 4-5 months

    Hi pratima roy, company is showing good growth YoY and is fundamentally very strong. during the crash all stocks witnessed huge selling pressure.. it should do well in long term since it was not effected by the recession and continued to do well. only problem for the company is the debt. but looking at their growth they should be able to reduce it soon.


  3. nisha Says:
    January 3rd, 2010
    Posted at: 9:24 pm

    i trade in this company last 2 year b4 ....that time this company share price 500+ and i watch that share everyday going down...and its make low of 38??/ do you think its good company to invest because i have make very big loss in this company???i still holding @ 350 that company share??


  4. Dhanesh Says:
    January 3rd, 2010
    Posted at: 9:40 pm

    I want to invest Rs.8000-10000 per month X 15 months in stocks per month, kindly advice me the stocks, i can hold for 2 years.


  5. CB Says:
    January 3rd, 2010
    Posted at: 9:46 pm

    Hi nisha, yes it will recover in med/long term back to 300 levels. if possible avg it around 80 levels. fundamentally its a strong bet.


    Hi Dhanesh, on dips go with gmdc, sel, tata motors and ifci.these are likely to do well in long term.


  6. CB Says:
    January 3rd, 2010
    Posted at: 10:24 pm

    Hi siva, yes.


  7. siva Says:
    January 3rd, 2010
    Posted at: 10:28 pm

    Hi CB,
    shall i entry at CMP at 84 or wait for a drop to 73?


  8. Deepak7791 Says:
    January 3rd, 2010
    Posted at: 11:03 pm

    CB

    Thank you for Posting Investment Idea. I had requested Kartik to post some since it was long time this column was updated.


  9. CB Says:
    January 3rd, 2010
    Posted at: 11:07 pm

    Hi Deepak7791, most welcome.. yes, we post a new call once the previous one is closed..


  10. ANIL PATIL Says:
    January 4th, 2010
    Posted at: 7:18 am

    Dear CB,
    Thankyou for SEL MANUFACTURING.


  11. CB Says:
    January 4th, 2010
    Posted at: 7:32 am

    Hi siva, one can enter at cmp

    Hi ANIL PATIL, most welcome.


  12. G10 Says:
    January 4th, 2010
    Posted at: 7:33 am

    Dear CB,
    Very thanx for SE Investment the previous call and again thanx for SEL.


  13. CB Says:
    January 4th, 2010
    Posted at: 7:38 am

    Hi G10, always welcome..


  14. Lipi Says:
    January 4th, 2010
    Posted at: 8:26 am

    can i purchase unitech,DLF today?


  15. CB Says:
    January 4th, 2010
    Posted at: 8:27 am

    Hi Lipi, if you plan for med term investment then one can enter them


  16. prasad Says:
    January 4th, 2010
    Posted at: 9:46 am

    can i take sel manfacturing today in this rate

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