Buy Filatex India with target of Rs 230: Equity99

On the back of robust demand in the domestic and international market for man-made fiber and recent brownfield capacity expansion, profitability will likely to grow at higher rate, says Sumit Bilgaiyan, Founder of Equity99.

April 28, 2018 / 10:33 AM IST
Textile and clothing

Textile and clothing

 
 
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Sumit Bilgaiyan

Filatex India is engaged in manufacturing Monofilament Yarns for Zippers, Tooth Brush Bristles, Velcro, Magic Fasteners, Forming Fabrics, manufacturing Polyester, nylon, FDY, POY, and DTY in India.

The company has diversified product portfolio to meet the domestic as well as export demand and global market reach to 28 countries. On the back of robust demand in the domestic and international market for man-made fiber and recent brownfield capacity expansion, profitability will likely to grow at higher rate.

Indian government has reduced the GST rate on manmade fiber from 18% to 12% and to increase in import duty on all fabrics to 20% will act as demand accelerators for this company.

Polyester now has become the yarn for the masses due to easy availability of man-made fiber at competitive rates. Considering the rising global demand of MMF Filatex is expected to be in the growth curve in the near future with yielding maximum benefits. We are recommending a buy with target of Rs 230.

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Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Apr 26, 2018 10:58 am

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