Cotton Yarn Company Bags a Repeat Order of 100 MT 100 Per Cent BCI Cotton Yarn Worth Around Rs 3.20 Crore
The company has a market cap of Rs 442 crore and the stock gave multibagger returns of 279 per cent from its 52-week low of Rs 113.50 per share.
A B Cotspin India Ltd, established in 1997, is a textile manufacturing company specializing in cotton yarn, knitted fabrics, cottonseed oil, and oil cakes. The company's operations encompass cotton ginning, yarn manufacturing, fabric production, and oil extraction. It caters to the textile industry in Punjab and Haryana, offering a diverse range of products including various types of cotton yarn and knitted fabrics.
Repeat Order and Company Overview
A B Cotspin India Ltd. has secured a repeat order for 100 MT of 100 per cent BCI Cotton Yarn, valued at approximately Rs 3.20 crore. This reinforces the company's strong market position and customer trust. Established in 1997, A B Cotspin has evolved into a fully integrated textile manufacturing unit, boasting 36,000 spindles and plans for further expansion. The company operates 24/7 across three shifts to meet the increasing global demand.
Core Business Areas and Value-Added Products
A B Cotspin's core business areas encompass cotton ginning, cotton yarn manufacturing, knitted fabric manufacturing, and oil extraction. The company focuses on value-added products, with BCI and Organic Cotton contributing to 50 per cent of sales and Slub Cotton accounting for 25 per cent. The company's state-of-the-art plant spread across 7,18,000 sq ft, houses 36,000 spindles and is strategically located on Bathinda Road, Jaitu Distt. Faridkot (Punjab).
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Clientele and Future Outlook
A B Cotspin has forged strong partnerships with renowned clients such as SPL Faridabad, Jawandsons Ludhiana, Parmeshwari Silks Mills Ltd., and others. The company's robust order book of approximately 700 MTs, valued at Rs 21 crore, ensures a steady pipeline of business. To enhance sustainability, A B Cotspin has installed a 2500 KW solar plant and is planning for further expansion. Additionally, the company has submitted an Expression of Interest (EOI) to acquire SEL Textiles Ltd., which will bolster its manufacturing capacity and market position.
Financial Projections and Commitment
A B Cotspin's financial projections for FY 2024-25 are promising, with estimated sales of Rs. 260-275 Crore and EBITDA of Rs. 29-32 Crore. The company remains committed to its core values of honesty and quality, striving to deliver excellence in every thread.
The company has a market cap of Rs 442 crore and the stock gave multibagger returns of 279 per cent from its 52-week low of Rs 113.50 per share.
Disclaimer: The article is for informational purposes only and not investment advice.