Buy Acknit Industries: Equity99

Sumit Bilgaiyan

Acknit Industries is one of the largest manufacturers and exporters of industrial gloves and garments.

Over 90 percent productions are exported to European countries regularly and it is a recognized export house by the government. With a tiny equity of Rs 3.04 crore, it has reserves of above Rs 38 crore. It reported excellent results for Q1FY19. The profiot after tax (PAT) soared by 155 percent to Rs 1.2 crore on sales of Rs 34.33 crore.

At the current market price, the stock trades at a P/E of just 11.9x on its TTM EPS. It is regularly dividend paying company. Exports constitute 90 percent of its total revenue and hence, AIL will benefit from the depreciating rupee. Stock is trading near three years high. We are recommending a strong buy for medium to long term.