Call given at 9.8, CMP 20+(Nov’ 09). Book 50% profits at 21 and hold the rest for Long term.

The Company was incorporated as a Private Limited Company on 13th August 1984 under the name of Nakoda Textile Industries Private Limited. It became a deemed Public Limited Company by virtue of Sec. 43 A of Companies Act 1956 on 17th August 1989. By means of resolution passed by company in annual general meeting held on 16th September 1991, company was converted into Public Limited Company.

In the year 1999 the company was successful in acquiring plant and machineries of Garware Nylons Ltd. (in Liqn.) Pune. It has enhanced its POY production capacity to 21600 MTPA in the year 2001. Further company also acquired POY production facilities of Indian Organic Chemicals Ltd., Chennai. The equipements of same where used at surat plant for further expansion and to enchance production. In the year 2004 POY spinning capacity has been expanded to 31000 MTPA.

In the year 2007 company undertook Expansion envisaging addition of 20,000 MTPA of Fully Drawn Yarn (FDY) to the existing capacity. The FDY plant became fully operational in November 2007. FDY is expected to improve both, the top and bottom line of the company significantly as FDY is a more value added product. Unlike POY which has to be texturised before conversion to fabrics. FDY can be directly used for weaving.

Currently trading around 39 and having a P/E of 4.66

Nokada

The company has shown good growth YoY, and seems a good long term bet(5 years+).

Note: Company data collected from companies website.