Sumit BilgaiyanEquity99
Acknit Industries was incorporated in 1990. It is one of the largest manufacturers and exporters of industrial gloves and garments. Acknit has three different manufacturing divisions near Kolkata.
Over 90 percent productions are exported to European countries regularly and it is a recognized export house by the government of India.
With tiny equity of Rs 3.04 crore it has reserves of above Rs 38 crore. The stock is trading below 1 P/BV. It has reported excellent results for Q1FY19. The profit after tax (PAT) soared by 155 percent to Rs 1.2crore on sales of Rs 34.33crore.
At current market price, the stock trades at a P/E of just 10.3x on its TTM EPS of 12.8.
It is regularly dividend paying company. Exports constitute 90 percent of its total revenue and hence, the company will benefit from the depreciating rupee. We are recommending a buy for medium to long term investment. Acknit is a good selection in such a volatile market for decent appreciation.
Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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