AXITA Cotton established in 2013 (ACL, The Company) is a manufacturer
and exporter of international quality Cotton Bales & Cotton Yarn. The
Company have its cotton, ginning and pressing plant at Kadi in Mahesana
district of Gujarat. The plant is close to rich cotton growing areas if
Saurashtra and other regions of Gujarat. The Company is also into sustainable
cotton farming and ginning of sustainable fibers. The Company a certified by
GOTS (Global organic Textile Standards) and OCS (Organic Content Standards)
On 25-Mar-22, AXITA migrated from BSE SME segment to main
board in NSE & BSE segment providing much need liquidity to small investor.
AXITA Cotton listed on BSE SME segment on
10-Jan-19 at Rs. 60/- per share and lot size of 2000 shares and investment
amount of 120,000/- would current be at 17,40,000/- at rate of Rs. 29/- per
shares.
Indian Textile Industry overview
The textiles and apparel industry contribute 2.3% to the country’s GDP, 13% to
industrial production and 12% to exports.
India’s textile and apparel exports (including handicrafts) stood at US$ 44.4 billion
in FY22, a 41% increase YoY.
Equichain Wealth Advisors: Short term investment target of 45 – 50.
Raw material prices are stable and
current trading near to MSP (minimum support price set by Government of
India). This will provide stability for
company as stable prices will help company to maintain its margin. Any high volatility in raw material (KAPAS)
price could have positive or negative depending on company’s inventory as AXITA
is also engaged in trading activity of KAPAS, COTTON BALES, COTTON SEEDS &
COTTON YARN.
We expect AXITA to perform consistently
in coming quarters maintaining revenue growth and stable margin. In current FY company has posted Net profit
of 12.26 crores Vs 17 crores in last financial year. If company manages to maintain the stable
growth rate, we expect company to deliver net profit of 24 – 26 crores in FY24
which would be more than 40% growth in Net profit.